News

UK watchdogs launch ad-scam alert system to control online fraud

The United Kingdom Advertising Standards Authority (ASA) and the Internet Advertising Office (IAB) initiated a new system on the 16th of June to find and eliminate online fraud adverts.

As per Telegraph, the system will let people report fraudulent ads, especially those that appear in paid-for spaces.

According to the authorities, one of the major motives behind the alert system is ongoing concerns about the increase in ad scams that are mostly linked to crypto-related fraud, said both authorities. The ASA quoted figures published by the UK’s Financial Conduct Authority (FCA), where it was disclosed that in 2018, victims of digital currency and other investment-related frauds such as Forex lost about £197 million ($255 ​​million) in total.

Guy Parker, Executive Director of the ASA, stated:

“The vast majority of ads responsibly inform and entertain their audience, but a small minority are published with criminal intent. Our scam ad alert system will play an important role in helping to detect and stop these scams.”

It is reported that both the internet watchdogs will be supported by digital advertising platforms and tech giants like Google and Facebook. Jon Mew, IAB’s CEO, clarified that though the system is not going to completely eliminate scam advertising on the internet, it will assist in having better regulation on the issue:

UK watchdogs, like the FCA, have been regularly announcing measures to supervise the country’s crypto environment. It was reported in January that the FCA will be analyzing the anti-money laundering (AML) and counter-terrorist financing (CTF) for firms carrying out cryptocurrency-related activities.