Summary
European institutions adopted a provisional package of measures designed to shift accountability for online fraud from individual consumers toward platforms and financial intermediaries. The agreement would require major online platforms and search engines to ensure that firms advertising financial services in an EU member state are regulated there. Payment providers would be obliged to implement stronger fraud prevention, to freeze transactions that look suspicious and in some circumstances to reimburse customers who were tricked into authorising payments. The Parliament will now work on technical details before a final vote.
Why this matters
Investment and e-commerce scams have ballooned in recent years, with investigations showing huge volumes of fraudulent advertisements running on mainstream social networks. Regulators say platforms profited from these ads while victims lost billions of euros. The new rules aim to break that incentive structure by making platforms and payment firms share responsibility and financial risk when fraud occurs. That could materially change how ads are vetted, priced and served across the EU.
Key measures agreed
1.
Advertiser vetting: Major platforms and search engines may only show ads for financial services if the advertiser is authorised and regulated in the member state where the ad targets consumers. This is meant to stop fraudulent actors from hiding behind bogus companies. 2.
Removal of fraudulent ads: Platforms would be required to proactively remove ads identified as fraudulent and to block repeat offenders. 3.
Payment safeguards: Banks and payment service providers must implement stronger detection systems, freeze suspicious payments and make it easier to share fraud signals between institutions. 4.
Liability and reimbursement: Where providers fail to implement adequate safeguards, the rules create pathways for victims to be reimbursed, shifting costs away from individual consumers. 5.
Human support requirements: The package includes provisions to ensure consumers can access human customer service rather than chatbots when handling potential fraud cases.
Reactions from stakeholders
European lawmakers and consumer advocates hailed the move as a major step toward accountability. Regina Doherty MEP described the deal as a seismic shift in responsibility for the largest online platforms. Industry groups warned about operational complexity, arguing that verifying all advertisers across 27 legal systems could be technically difficult and risk unintended consequences for legitimate advertisers. Regulators are aware of those challenges and will now shape the technical implementing rules.
Context and background
The EU has been intensifying pressure on Big Tech for several years under instruments such as the Digital Services Act. That legislation obliges platforms to manage illegal and harmful content, but it does not fully address the specifics of financial fraud and cross border advertising. High profile investigations earlier in 2025 revealed large volumes of scam ads on major platforms and estimated revenue linked to illicit advertising, pushing member states to demand stronger rules. The new provisional agreement builds on prior proposals and seeks to close regulatory gaps, in particular by combining advertising oversight with payment system safeguards.
What to expect next
The provisional agreement now moves to technical drafting and a final vote in the European Parliament and the Council. If adopted, member states will have a transition window to implement the measures. Platforms and banks will need to adapt policies, update ad verification systems and enhance fraud monitoring. Expect industry consultations, legal challenges and a period of operational adjustment as firms and authorities test new enforcement modalities.
What this means for consumers and businesses
For consumers the changes promise more protection and a clearer path to recovery when they fall victim to scams. For advertisers and platforms the rules will raise compliance costs and may reduce the volume of high risk advertising. Payment firms should face increased scrutiny and operational requirements but also gain stronger tools to block criminal flows. Companies operating cross border will need clearer documentation to prove regulatory compliance in each market they target.
Bottom lineThe provisional EU deal of November 27, 2025 represents a significant regulatory shift aimed at making platforms and payment providers accountable for online fraud. If implemented effectively, it could reduce the reach and profitability of scam operations in Europe and set a model that other jurisdictions might follow tags: eu, scams, ads, banks, MEPS
European institutions adopted a provisional package of measures designed to shift accountability for online fraud from individual consumers toward platforms and financial intermediaries. The agreement would require major online platforms and search engines to ensure that firms advertising financial services in an EU member state are regulated there. Payment providers would be obliged to implement stronger fraud prevention, to freeze transactions that look suspicious and in some circumstances to reimburse customers who were tricked into authorising payments. The Parliament will now work on technical details before a final vote.
Why this matters
Investment and e-commerce scams have ballooned in recent years, with investigations showing huge volumes of fraudulent advertisements running on mainstream social networks. Regulators say platforms profited from these ads while victims lost billions of euros. The new rules aim to break that incentive structure by making platforms and payment firms share responsibility and financial risk when fraud occurs. That could materially change how ads are vetted, priced and served across the EU.
Key measures agreed
1.
Advertiser vetting: Major platforms and search engines may only show ads for financial services if the advertiser is authorised and regulated in the member state where the ad targets consumers. This is meant to stop fraudulent actors from hiding behind bogus companies. 2.
Removal of fraudulent ads: Platforms would be required to proactively remove ads identified as fraudulent and to block repeat offenders. 3.
Payment safeguards: Banks and payment service providers must implement stronger detection systems, freeze suspicious payments and make it easier to share fraud signals between institutions. 4.
Liability and reimbursement: Where providers fail to implement adequate safeguards, the rules create pathways for victims to be reimbursed, shifting costs away from individual consumers. 5.
Human support requirements: The package includes provisions to ensure consumers can access human customer service rather than chatbots when handling potential fraud cases.
Reactions from stakeholders
European lawmakers and consumer advocates hailed the move as a major step toward accountability. Regina Doherty MEP described the deal as a seismic shift in responsibility for the largest online platforms. Industry groups warned about operational complexity, arguing that verifying all advertisers across 27 legal systems could be technically difficult and risk unintended consequences for legitimate advertisers. Regulators are aware of those challenges and will now shape the technical implementing rules.
Context and background
The EU has been intensifying pressure on Big Tech for several years under instruments such as the Digital Services Act. That legislation obliges platforms to manage illegal and harmful content, but it does not fully address the specifics of financial fraud and cross border advertising. High profile investigations earlier in 2025 revealed large volumes of scam ads on major platforms and estimated revenue linked to illicit advertising, pushing member states to demand stronger rules. The new provisional agreement builds on prior proposals and seeks to close regulatory gaps, in particular by combining advertising oversight with payment system safeguards.
What to expect next
The provisional agreement now moves to technical drafting and a final vote in the European Parliament and the Council. If adopted, member states will have a transition window to implement the measures. Platforms and banks will need to adapt policies, update ad verification systems and enhance fraud monitoring. Expect industry consultations, legal challenges and a period of operational adjustment as firms and authorities test new enforcement modalities.
What this means for consumers and businesses
For consumers the changes promise more protection and a clearer path to recovery when they fall victim to scams. For advertisers and platforms the rules will raise compliance costs and may reduce the volume of high risk advertising. Payment firms should face increased scrutiny and operational requirements but also gain stronger tools to block criminal flows. Companies operating cross border will need clearer documentation to prove regulatory compliance in each market they target.
Bottom lineThe provisional EU deal of November 27, 2025 represents a significant regulatory shift aimed at making platforms and payment providers accountable for online fraud. If implemented effectively, it could reduce the reach and profitability of scam operations in Europe and set a model that other jurisdictions might follow tags: eu, scams, ads, banks, MEPS
