FinTelegram Urges German Regulator to Take Action Against Fraudulent Google Ads

CyberFinance Regulation - Google, like Meta, has been massively criticized for making a lot of money from ads placed by fraudulent scheme operators. The UK Financial Conduct Authority (FCA) issued 1,200 warnings in 2020 about fraud schemes operating on Google and social media platforms. Consequently, in August 2021, Google UK & Ireland re-regulated the advertising of financial offers, allowing only FCA-regulated firms to advertise financial services, including crypto ads. However, on Google DE, fraud scheme operators can still buy ads without any restrictions.

To publish financial ads and crypto ads in the UK - including ads to UK users who appear to be seeking financial services - advertisers have to be verified by Google. As part of this KYC process, advertisers must demonstrate that they are authorized by the UK FCA or qualify for one stated exemption. In the UK, therefore, unverified and unregulated companies cannot, in principle, buy financial ads from Google. The search giant sees this as a measure to protect consumers from fraud schemes.

In a recent review, FinTelegram established that Google DE still accepts financial ads from fraud operators. FinTelegram found that scheme operators place the fraudulent ads on Google DE through fake websites in Russia. Clicking on the fraudulent Google Ads takes potential victims to other German websites where fraudulent campaigns like Bitcoin Prime chase victims for fraudulent broker schemes.

In its conclusion, FinTelegram said that Google's approach is neither understandable nor acceptable. Clearly, Google realized the threat that fraud schemes can do via ads on the search platform. Thus, Google UK imposed strict rules to protect consumers. However, Google DE still accepts operators of fraudulent campaigns and offers on Google DE. Google's algorithms easily detect and decline these fraud ads.

German regulator BaFin has issued several warnings against websites that have run fraudulent financial and marketing campaigns in recent months. So BaFin holds itself responsible for these issues. Thus, FinTelegram urged the regulator to take action and at least issue a swift warning against Google DE. Such a public warning would set a strong signal in the fight against financial cybercrime.

In a statement to FinTelegram, Elfriede Sixt, principal of the European Fund Recovery Initiative (EFRI), said that Google, like Meta, knowingly provides powerful platforms to fraudulent schemes facilitating financial fraud. Therefore, they are complicit in the losses of hundreds of thousands of European consumers.

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Ben Givon
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Active since 2018, FinTelegram (www.fintelegram.com) is a cyber financial intelligence and whistleblower platform with the mission of protecting and educating investors. FinTelegram regularly produces reports on financial service providers and issues warnings about schemes and fraudulent activities.

This release was published on openPR.