By PAUL O’DONOGHUE, Senior Correspondent
US tech giants such as Google and Microsoft will be required to implement new anti-scam measures by the EU, as Europeans lose a reported €4 billion per year.
The EU is increasing its regulatory scrutiny of major U.S. technology companies via the Digital Services Act. The landmark legislation that requires Big Tech to do more to tackle harmful content, such as fraud.
“Today, we sent requests for information, under the DSA, to Apple, Booking.com, Google and Microsoft on how they identify and manage risks related to financial scams,” EU tech chief Henna Virkkunen said.
“Every year, Europeans lose over €4 billion to online financial scams. The Digital Services Act recognises financial scams as a systemic risk.
“This means platforms and search engines must take stronger preventive measures.”
She said these measures could include:
- ‘Notice-and-action’ systems so users can report scams quickly
- Priority flagging by trusted authorities for faster removals
- Risk assessments and independent audits for very large platforms
- Ad transparency rules so users know who is behind an ad and why they are targeted
- Tougher rules for repeat offenders misusing online services
Scams on tech platforms range from fake hotel listings and fraudulent banking apps, to deepfakes of public figures promoting false investments.
Dublin MEP Regina Doherty welcomed the new approach as “finally acting on the alarming rise in online financial scams”.
“I welcome that today the Commission has finally acted, but this action is long overdue,” she said.
“I called on the EU to step up, hold tech giants accountable, and protect consumers from the criminals exploiting their platforms.”
EU crackdown on scam losses
Virkkunen said regulators around the world have voiced concerns that the rise of AI could make consumers more vulnerable to scams such as phishing and fraudulent investment schemes.
“Scams don’t just cause financial losses. They also erode trust in digital services and create stress and anxiety for citizens,” she said.
“The DSA is designed to hold platforms accountable and ensure Europeans can feel safe online.”
Virkkunen added that the fight against financial scams “is complex and cross-border”.
“But with the DSA, Europe now has the tools to push platforms to act before harm is done,” she said.
The EU’s anti-scam measures comes as the UK said a ‘fraud crackdown’ saved half a billion pounds for public services.
The government said in a statement that it stopped over £480 million “ending up in the pockets of fraudsters over twelve months since April 2024 – more money than ever before”.
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