Google tightens screws on financial services ads to stem scams in Britain

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, Reuters reports.

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.

Google, which is part of U.S. tech giant Alphabet Inc, 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 September 6.

"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.