Changes to online financial services ads should be law, says Doherty

An initiative that will stop fake financial services advertising on Google in Ireland and three other countries from tomorrow should be expanded internet-wide and become EU law, Dublin MEP Regina Doherty has said.

From Thursday, advertisers promoting financial services in Ireland, New Zealand, South Korea and Thailand must obtain strict verification, including providing license numbers from national regulatory bodies, to be able to appear as an ad on the platform.

Speaking after today’s European Commission Confirmation Hearing for the new Financial Services Commissioner, Maria Luís Albuquerque, Doherty welcomed the initiative but stated it should go further.

“This change from Google will provide really important protection to their users in Ireland,” she said.

“But it should be a legal requirement across all platforms at a European level.

“I commend Google for working with the financial services industry in Ireland and bringing forward this change, but protecting consumers from fraud shouldn’t be voluntary for big tech companies.”

“This is not just a problem on Google, fraudulent advertisements appear even more regularly on platforms like Facebook and Instagram and they can be seriously effective.

“In the first half of 2024, the volume of investment fraud attempts surged by 76% compared to the same period in 2023.

“People have lost their life savings to these ads and don’t always get their money back, all while social media platforms profit from advertisement revenue.”

On a proposed solution of an addition to the Payment Services Regulation, currently going before the European Council, Doherty said, “Legislation in this area is playing catch up to tackle very sophisticated fraudsters.

“An amendment to the PSR would be the quickest and most appropriate way to turn this worthwhile, and currently voluntary, initiative into law.

“I will work with my colleagues both in Dublin and Brussels to try an achieve this.”

At the confirmation hearing this morning, Doherty stated that “Improving investment participation and financial literacy empowers people and gives them more security” and questioned the new Financial Services Commissioner on a strengthened capital market for businesses and investors as individuals. Commissioner Albuquerque responded that investors “should be able to make choices in an informed way and in that sense be protected from scams, fraud and abuse.”