The UK Financial Conduct Authority (FCA) has intensified its call for major technology companies to take a more proactive role in combating investment fraud, with senior enforcement officials urging that Big Tech platforms must do more to tackle illegal financial content proliferating across their services.
Senior FCA Official’s Statement on Big Tech Responsibility
A senior official at the FCA stated that major tech companies should help combat the significant increase in investment fraud by adopting a more proactive approach to tackling illegal content across their platforms. The comments build on the financial regulator’s recent calls for tech platforms to do more to stop illegal financial promotions, marking an escalation in the watchdog’s pressure on social media and technology giants to assume greater responsibility for fraud prevention.
The FCA’s enforcement division has emphasised that big tech companies must “pull their weight” to stop fraudsters by preventing their platforms from being exploited for fraudulent schemes. This stance reflects growing regulatory concern that technology platforms have become primary vectors for investment scams, with fraudsters increasingly leveraging social media, messaging apps, and online advertising to target consumers.
Rising Investment Fraud and Platform Exploitation
The regulator’s push comes amid a documented surge in investment fraud facilitated through digital channels. FCA data shows that in 2025, the authority issued 2,329 warnings relating to unauthorised or potentially fraudulent firms, an increase from 2,240 warnings in the previous year. More than 75% of the FCA’s enforcement work now focuses on fighting financial crime, with at least half of its operations involving investigation of potential criminal offences.
Social media has emerged as a particularly acute channel for fraud. A recent study found that 89% of the most-viewed social media posts promoting cryptocurrency trading breached FCA promotion rules. The regulator took enforcement action against 74 “finfluencers” last year as it continues to target unregulated individuals who use social media to give financial advice. Nearly 60% of people surveyed regretted taking financial advice from social media, according to a TSB survey of 2,000 respondents.
International Crackdown and Enforcement Actions
The FCA has already demonstrated its willingness to coordinate international action against illegal financial promotions on digital platforms. In June 2025, the regulator coordinated an international week of action involving nine regulators that resulted in three arrests, six criminal proceedings, 11 warning or cease-and-desist letters, 50 regulatory warning-list alerts, and 650 social media takedown requests.
Steve Smart, the FCA’s executive director of enforcement and market oversight, has been vocal about the regulator’s enforcement priorities. In recent statements, Smart emphasised the FCA’s commitment to depriving criminals of the proceeds of their crimes and returning money to fraud victims. The regulator secured 17 criminal convictions in 2025/26 covering offences including fraud, money laundering, insider dealing and breaches of financial regulations.
Legislative Context and Corporate Liability Proposals
The FCA’s calls for greater Big Tech accountability align with broader UK government proposals to strengthen fraud prevention obligations on digital platforms. In July 2026, the Home Office published “Fraud in the Digital Age,” a report examining barriers to fraud investigation and prosecution. The report recommends reforms including a new corporate criminal offence for providers of regulated user-to-user services that fail to prevent fraud on their platforms.
The Fraud in the Digital Age report states that technology and artificial intelligence have changed the fraud landscape and recommends placing additional prevention obligations on certain online services. Investigation methodologies may need to address platform data, automated content and cross-border evidence, according to the proposals.
FCA’s Broader Anti-Fraud Strategy
The regulator’s pressure on Big Tech forms part of a wider five-year strategy to intensify its fight against financial crime. In its Annual Report and Accounts 2025/26, the FCA outlined significant action against illegal financial promotions, market abuse, insider dealing, money laundering and investment fraud during the first year of the strategy.
The FCA reported that it issued 2,329 warnings about unauthorised or potentially scam firms in 2025, up from 2,240 in 2024. The regulator also led an international crackdown on illegal finfluencer promotions, resulting in three arrests and 650 social media takedown requests.
In one notable enforcement action, the FCA obtained a confiscation order against convicted fraudster John Burford, enabling victims to recover the majority of money they invested. Steve Smart said: “Mr Burford scammed investors to fund his own lavish lifestyle. Clawing back stolen money from fraudsters and returning it to victims sends a clear message that crime doesn’t pay.
Consumer Protection and Warning Mechanisms
The FCA has expanded its consumer protection measures alongside its enforcement activities. The regulator’s warning and consumer protection operations have become increasingly sophisticated, using data and technology to detect harm earlier. In recent weeks, the FCA has issued dozens of warnings about unauthorised or clone firms, with 75 warnings issued in a single seven-day period in late July 2026.
Consumers are encouraged to report scams to Report Fraud on 0300 123 2040 or via their website, with Scottish residents directed to report to Police Scotland. The FCA maintains a contact centre on 0800 111 6768 for those who believe they may have suffered loss from unauthorised promotions or fraudulent schemes.
Industry Response and Compliance Costs
The cost of FCA enforcement action against illegal financial promotions has risen significantly. Between 1 July 2023 and 10 July 2026, the combined cost of two operations the FCA pursued against finfluencers over illegal financial promotions hit almost £250,000, according to a Freedom of Information request. This reflects the regulator’s increasing willingness to dedicate resources to pursuing online fraud and unauthorised promotions.
The FCA’s enforcement guide was amended on 30 July 2026 to address aspects of the conduct of enforcement investigations, including notification of persons under investigation, use of statutory powers to require documents or information, and interviews under caution. These changes signal the regulator’s intent to streamline and strengthen its investigative capabilities in the digital fraud space.
Outlook for Big Tech Regulation
The FCA’s calls for Big Tech to be brought into the anti-fraud fight are likely to gain momentum as legislative proposals advance. The Home Office’s Fraud in the Digital Age recommendations, if implemented, would create new legal obligations for technology platforms to prevent fraud, potentially including corporate criminal liability for failures to act.
Regulatory experts anticipate further FCA activity in the social media and online promotions space, including additional prosecutions. In April 2026, as part of a worldwide “week of action,” the FCA sent four targeted warning letters to individuals suspected of engaging in unauthorised financial promotions, issued 34 warning alerts against unauthorised firms or individuals, updated an additional 14 warnings, and made 120 account takedown requests to social media platforms hosting illegal finfluencer content.
The convergence of regulatory pressure, legislative reform proposals, and rising fraud losses is creating an environment in which Big Tech companies face increasing expectations to implement robust fraud prevention measures, cooperate with enforcement actions, and take responsibility for illegal content on their platforms.