Google to crackdown on financial fraud

Google is set to crackdown on online scams on its platform, following Financial Conduct Authority (FCA) calls for social media giants to prevent financial fraud.

Mark Steward, the FCA’s director for enforcement, told parliament's Treasury Select Committee earlier this month that his organisation had issued 1,200 consumer warnings in 2020 about social media scams, double that of 2019.

From August 30, firms advertising financial services on Google will need to demonstrate they are authorised by the FCA, or that they qualify for one of the limited exemptions.

Enforcement of the policy is set to begin seven days later on September 6.

Google’s new policy covers financial services products both regulated by and not regulated by the UK FCA.

The search giant highlighted other steps which it had taken over the past year to prevent financial fraud, including amending its unreliable claims policy, which governs the rates of return firms can advertise.

The news comes after The Sunday Times reported in March that Bank of England (BoE) governor Andrew Bailey was reportedly lobbying to make it a legal requirement for BigTech giants to tackle online financial fraud.

In May, the Financial Conduct Authority (FCA) announced plans for a new Consumer Duty which it said will set a higher level of consumer protection in retail financial markets.

A 2020 survey from the financial watchdog found that a quarter of respondents lack confidence in the financial services industry, while only 35 per cent felt that firms are honest and transparent.

    Share Story:

Recent Stories


Banking's GenAI evolution: Beyond the hype, building the future
In the first episode of a three-part video podcast series sponsored by HCLTech, Sudip Lahiri, Executive Vice President & Head of Financial Services for Europe & UKI at HCLTech explores how financial institutions can navigate the transformative potential of Generative AI while building lasting foundations for innovation.

Beyond compliance: Transforming document management into a strategic advantage for financial institutions
In this exclusive fireside chat, John Rockliffe, Pre-Sales Manager at d.velop, discusses the findings of Adapting to a Digital-Native World: Financial Services Document Management Beyond 2025 and explores how FSIs can turn document workflows into a competitive advantage.

Sanctions evasion in an era of conflict: Optimising KYC and monitoring to tackle crime
The ongoing war in Ukraine and resulting sanctions on Russia, and the continuing geopolitical tensions have resulted in an unprecedented increase in parties added to sanctions lists.

Achieving operational resilience in the financial sector: Navigating DORA with confidence
Operational resilience has become crucial for financial institutions navigating today's digital landscape riddled with cyber risks and challenges. The EU's Digital Operational Resilience Act (DORA) provides a harmonised framework to address these complexities, but there are key factors that financial institutions must ensure they consider.