The government has announced it is making changes to its Online Safety Bill to tackle scams and fraud.

The move comes as the government is also launching a consultation as part of a wider overhaul of how online advertising is regulated in the UK.

A new legal duty will be added to the Online Safety Bill requiring the largest and most popular social media platforms and search engines to prevent paid-for fraudulent adverts appearing on their services.

The government has suggested this change will improve protections for internet users from the impact of fake ads, including where criminals impersonate celebrities or companies to steal people’s personal data, peddle dodgy financial investments or break into bank accounts.

Separately, the government’s consultation on proposals are to tighten the rules for the online advertising industry. This consultation includes proposals to improve transparency and accountability and tackle harmful, fraudulent and misleading adverts.

Commenting on the changes, interactive investor senior personal finance campaigner, Myron Jobson, commented: “Any effort made to crackdown on the scourge of scam ads is welcome, but it will be nigh on impossible to nip every financial scam in the bud.

“The challenge will be creating a consistent and robust regulatory framework that forces all gatekeepers of the internet, social media companies included, to pull up their socks when it comes to tackling financial scams.

“The success of the new measures will be determined by the prevalence of scam adverts and the severity of enforcement action taken against offenders.”

Aegon head of pensions, Kate Smith, added: “The pension industry spoke with one voice campaigning for inclusion of fraudulent paid for adverts, in addition to user-generated content, to be included in the Online Safety Bill.

“We’re therefore absolutely delighted that the government has listened to our concerns and will cover scams originating from all sources. Exclusion of paid-for adverts would merely have led to scammers taking advantage of this loophole.

“Scams are constantly evolving and it’s important that legislation moves with the times, providing greater protection to protect people’s hard-earned cash, investments and pensions.”

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