UK Begins Enforcing Law Against Online Scams, Child Sex Abuse

The U.K. today began enforcing key parts of the Online Safety Act, which aims to prevent fraud and other offences by requiring websites and apps to quickly remove illegal material or face hefty fines. 

Aside from “fraud and financial offences,” the legislation targets a variety of online crimes including human trafficking and child sexual abuse. The Act covers more than 100,000 platforms — including Facebook, X and Google — which were given time to assess the issue before enforcement began.

A platform that fails to comply can be fined as much as 18-million British pounds ($23 million) or up to 10 percent of its revenue, according to a statement by Ofcom, the U.K.’s communications regulator.

“Any provider who fails to introduce the necessary protections can expect to face the full force of our enforcement action,” said Suzanne Cater, the regulator’s enforcement director, in the statement.

Telephone and online fraud has become a booming illicit business globally, prompting new legislation in various countries. Like the U.K., France also implemented new measures this month, with legislation aimed at spam telephone calls. 

The impact of fraud perpetrated online and by phone was underscored in the recent Scam Empire investigation by OCCRP, Swedish Television (SVT), and dozens of global media partners. Journalists exposed a massive fraud operation run out of call centers based in Israel, Eastern Europe, and the country of Georgia. 

The investigation revealed a network of skilled fraudsters who lured victims into handing over their life savings for imaginary investments, often using fake celebrity endorsements and deploying the latest technological buzzwords. 

The new U.K. measures may reduce fraud because platforms will be required to quickly remove illegal material pointed out by "trusted flaggers" like law enforcement and regulatory bodies, according to Helena Wood of Cifas, a U.K. association that focuses on fraud prevention. 

However, the Act cannot necessarily prevent fraudsters from getting to victims in the first place, Wood told OCCRP.

“Will the Act significantly reduce the level of facilitation of these types of crimes by social media and online platforms? Not necessarily,” said Wood, who suggest that the rules could be strengthened.

"To be fair to the platforms, it really is quite difficult to spot this stuff, because by its nature, it masquerades as legitimate investments,” she added.

In France, a law passed March 6 aims to fight scams perpetrated over the phone, as well as preventing unsolicited calls of other kinds. People must now provide their consent prior to a call informing them about any kind of offer — legitimate or not.

The law is modelled after German legislation, said Pierre Cordier, the Member of Parliament who initially proposed it in 2018. The legislation was rejected at the time due to fears that it would eliminate jobs in call centers.

“Basically, we've wasted seven years,” Cordier told OCCRP, but added that he was optimistic that the new law could be effective. 

“I don't despair, in any case, that the effects of this legislation will bear fruit and that fewer and fewer people will be scammed and defrauded by phone,” Cordier said.

This story has been updated with comment from Cifas.