Yahoo Finance Consumers demand regulation of online adverts as Covid fraudsters run riot
Consumers have demanded more checks are made on online adverts amid a surge in scams.
More than half of internet users do not trust that the adverts they see on search engines are placed there by legitimate companies, according to a report by insurer Aviva.
The warning comes amid an onslaught of fake investments adverts, scam text messages, calls from fraudsters and other attempted thefts. The report found 87pc of users wanted the Government to force social media firms and search engines to ban the promotion of scams and phoney ads.
Rob Lee of Aviva said: “There is a clear mistrust of financial services adverts online. However, there is no legal responsibility for technology firms to verify the legitimacy of the companies which pay them to publish adverts on their platforms.
“This potentially leaves millions of internet users exposed to unscrupulous adverts.”
Organisations including consumer group Which?, industry lobby groups UK Finance and the Personal Investment Management and Financial Advice Association, and the City of London Police want the Government to change the law. This would force tech firms to protect people from online scams, with the threat of large fines if they fail.
There has been a rise in scams since the start of last year. Aviva's research found 42pc of people had been targeted by a coronavirus-related scam.
Google has said that it seeks to remove fake ads. However, searching for “safe investments” using the search engine still can return risky and unregulated results.
Coronavirus lockdowns have also changed shopping habits and have hastened the shift to buying online, even among those who have previously avoided internet purchases, such as the elderly. This has meant a raft of inexperienced consumers have been let loose for criminals to prey upon.
Low interest rates from bank accounts have also meant that savers have sought out richer returns, often with disastrous results.
Fake comparison-style websites have herded consumers towards risky or fraudulent investments, some of which have used copied websites of legitimate businesses.
Cheap web hosting, free phone calls and cheap text messaging have all placed more targets at the mercy of fraudsters.
Last year, consumers were duped into sending £479m of savings to fraudsters, who used a variety of tricks including fake websites to steal from their victims. Less than half was refunded.
Last month a Telegraph investigation showed that web domains favoured by fraudsters could be bought for as little as £5 with no questions asked. It was even possible to buy addresses used in previous frauds, including one used to trick a widower out of his late wife's £30,000 legacy.
