Government sharpens focus on tech firms’ role in fraud prevention: key developments on the Online Safety Act, Ofcom enforcement, and the UK’s fraud strategy
Insurers have long grappled with the consequences of online fraud – from click-to-claim scams to criminal gangs posing as legitimate firms in the aftermath of road traffic accidents. Fraudsters often use online ads, spoofed websites and text message scams to dupe policyholders into extended hire arrangements or inflated repair costs, often with kickbacks for injury referrals.
On 14 May 2025, this issue was back in the spotlight during a House of Lords discussion initiated by Lord Vaux of Harrowden. His question challenged the government on what steps are being taken to ensure that technology and telecommunications firms contribute to the cost of fraud prevention and reimburse fraud victims.
This discussion offers several key insights for insurers, particularly as it relates to the Online Safety Act, Ofcom’s regulatory timetable, and the government’s forthcoming fraud strategy.
Key highlights from the debate:
- Tech and telecom firms under pressure to do more
Lord Vaux cited PSR data showing that over 70% of frauds originate online, with 54% involving Meta platforms and 31% (by value) tied to telecoms. He accused some firms of profiting from fraud alerts and called for mandatory financial liability, not voluntary participation. - Government insists enforcement tools now exist
Home Office Minister Lord Hanson of Flint confirmed that Ofcom’s illegal content code came into force in March 2025, giving regulators new powers to penalise platforms that fail to remove fraudulent content. However, he accepted that enforcement remains in the early stages. - Fraud strategy expected by end of 2025 / early 2026
The government is preparing a revised fraud strategy, set to be published either later this year or early next. Crucially, Lord Hanson stated that “no regulatory options are off the table”, signalling that mandatory obligations on tech and telecoms companies remain under consideration. - Delays to full Online Safety Act implementation
Baroness Doocey expressed concern that full enforcement – including rules on paid fraudulent advertising – may not be operational until 2027. While Ofcom will consult on advertising codes this summer, these are not expected to be finalised until mid-2026. - Expansion of international cooperation
Fraud originating overseas is a growing concern. Lord Hanson referenced a recent UK-Nigeria bilateral charter on joint fraud prevention, and a forthcoming UN conference, where the UK will lead calls for better global coordination. - Calls for better data sharing and transparency
Several peers urged action on cross-industry data sharing, mandatory fraud clauses in telecom contracts, and regular publication of enforcement metrics. These themes are expected to feature prominently in the updated strategy.
Key take-aways for insurers:
- Enforcement of the Online Safety Act has begun – but full implementation remains years away.
Ofcom’s illegal content codes are now active (as of March 2025), but rules specifically targeting fraudulent advertising are still under development, with enforcement unlikely before 2027. - Tech and telecom firms could face new financial liability.
The government has not ruled out forcing platforms to contribute to fraud compensation or prevention costs – a move that could rebalance current disparities between banks and digital platforms. - The government’s revised fraud strategy is imminent.
With publication expected by late 2025 or early 2026, the strategy will likely include stronger expectations around cross-sector cooperation, data sharing, and regulatory transparency. - Watch for more international partnerships.
The UK is positioning itself as a global leader on fraud prevention and enforcement, particularly in tackling scams emanating from abroad.
Keoghs next steps:
Following our successful parliamentary roundtable on fraud, which took place in October last year, attended by Ministers Lord Hanson and Georgia Gould MP, we are preparing feedback on the previous government’s fraud strategy as requested by Lord Hanson, and will be attending a meeting with the Public Sector Fraud Authority to discuss AI tools for the detection of fraud, expected to take place next month.
If you’d like to feed into our work on fraud, please get in touch with:
Natalie Larnder, Head of Market Affairs
nlarnder@keoghs.co.uk
Damian Ward, Head of Proposition - Motor (Legal) and Counter Fraud
E: dward@keoghs.co.uk
Ben Leech, Counter Fraud Strategy Director
E: bleech@keoghs.co.uk
Gary Petterson, Partner
E: gpetterson@keoghs.co.uk
Matthew Ruck, Partner
E: mruck@keoghs.co.uk
