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Google to clamp down on online financial scams in Britain

2 minute read

June 30 (Reuters) - Google will clamp down on financial fraud on its platform in Britain, saying on Wednesday that all financial services will need to be verified by the regulator before they can advertise.

Britain's financial watchdog issued 1,200 consumer warnings last year about scams advertised via social media platforms by fake companies, double the number in 2019. read more

Google, which is part of U.S. tech giant Alphabet Inc (GOOGL.O), said in a blog post it will begin enforcing the new policy, which follows calls from the Financial Conduct Authority (FCA) to vet paid promotions, from Sept. 6.

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The logo of Google is seen at the high profile startups and high tech leaders gathering, Viva Tech,in Paris, France May 16, 2019. REUTERS/Charles Platiau/File Photo

"While this is an important step from Google we think a permanent and consistent solution requires legislation," an FCA spokesperson said in emailed statement.

The regulator will assess the outcome of Google's decision once the changes take effect, the spokesperson added.

Bank of England Governor Andrew Bailey has been lobbying the government to introduce a legal requirement for internet giants to take down financial fraud websites, the Sunday Times reported in March. read more

Reporting by Ann Maria Shibu in Bengaluru; Additonal reporting by Aakriti Bhalla and Radhika Anilkumar; Editing by Jane Wardell and Alexander Smith

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