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FCA warns of fraudulent crypto ads on social media

Updated: Jul 25, 2024
Published: Sep 30, 2021
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The UK's financial services regulator, Financial Conduct Authority (FCA), will work together with platforms to stop advertising risky financial products.

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FCA to work with social media platforms to remove the ads

At the FCA's annual meeting on 28 September, the regulator said it wants to stop dangerous advertising. Particularly those relating to financial services such as cryptocurrencies. The FCA calls them "dodgy financial promotions" and says they leave consumers vulnerable.

The FCA also said it was willing to work with platforms on the issue and expects social media platforms to help protect the community. The U.K. regulator has long waged a battle with social media and search engine companies, as online fraud accounts for about 86% of all fraud in the U.K., according to Home Office data. The trend is partly attributed to the Covid crisis, which has led to more criminal activity online.

Google was the first to respond 

The first website to change its terms and conditions for financial ads was Google. The FCA praised the move, while Steward criticized other platforms for lagging behind. Because of the changes, companies such as crypto exchanges and wallets must register with the Financial Crimes Enforcement Network (FinCEN) in order to place ads on Google.

Meanwhile, Twitter and Facebook have not changed anything, despite the FCA offering to work with them. A spokesperson for Twitter said, "It is against our rules to use fraud tactics on Twitter to obtain money or private financial information," suggesting that the issue has been addressed. The spokesperson added that Twitter would take strict action if users violated these rules.

Facebook responded similarly when asked about the issue. A spokesperson said, "While no enforcement is perfect, we continue to invest in new technologies and methods to protect people on Facebook and Instagram from these scams."

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