Italy Blocks Fraudulent Websites in Crackdown on Scams

Italy blocks fraudulent websites promoting unauthorised financial services, using new regulatory powers to combat scams effectively. Italy’s financial regulator, Commissione Nazionale per le Società e la Borsa (CONSOB), has targeted its first set of companies for running digital advertisements promoting “abusive financial services.” This initiative follows the agency’s recent partnership with Google to combat illegal advertisements in its jurisdiction.

Italy Blocks Fraudulent Websites with Deceptive Financial Ads

The regulator blacklisted and blocked access to two websites that fraudulently advertised unauthorised services, using the likeness of prominent figures, such as Italian Prime Minister Giorgia Meloni and President Sergio Mattarella, along with branding from major companies. These ads redirected Italians to unauthorised financial service platforms.

While CONSOB has previously targeted unauthorised financial service platforms operating locally, this marks its first crackdown on illegal digital advertisements. Similar to its actions against unauthorised brokerages, the regulator blocked these advertisement websites at the domain level.

“The intervention is the first case of application of the new powers given to CONSOB by the ‘Capital Law,’ under which the Financial Markets Regulatory and Supervisory Authority can order telecommunications service operators to block sites that run advertising campaigns related to abusive financial services, i.e., without authorisation,” the regulator stated.

New Anti-Scam Initiative

In addition, the Italian watchdog took down four more unauthorised websites offering risky contracts for differences (CFDs) to retail clients, one of which falsely claimed CONSOB regulation.

Since July 2019, when CONSOB gained authority to tackle fraudulent platforms, the regulator has blocked access to 1,194 potentially fraudulent websites. However, combating such scams remains a challenge, as it often requires victims to report them.

Regulators in the United Kingdom, Cyprus, and Spain are also flagging potentially fraudulent financial service websites. However, unlike CONSOB, they lack the authority to block these sites.

Interestingly, Australia’s regulator, ASIC, has partnered with a tech firm to block over 7,300 phishing and investment scam websites since mid-2023.

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