Internet giants allow pension scam adverts that have cost savers £10billion

INTERNET giants have been profiteering by allowing pension scam adverts that have cost savers £10billion.

Fraudsters are able to promote themselves on the likes of Google because of “woeful lack of regulation”, MPs claim.

The loophole has helped them to rip off 40,000 people since pension reforms came in five years ago.

Watchdogs are powerless to hold search engines and social media to account because online ads are not regulated like those in newspapers or on TV and radio.

Tech companies cash in twice — by accepting payments to advertise scams and charging regulators to publish warnings.

A report by the Commons Work and Pensions Committee calls on the Government to act quickly to protect savers.

Chairman Stephen Timms said reforms giving people more choice on using pension pots has opened a new world of opportunity for criminals.

The Labour MP said the lack of regulation meant there was “an online free-for-all where scammers can advertise with impunity while the tech giants line their pockets from the proceeds of their crimes”.

Mr Timms wants tech giants to be forced to ensure investment promotions are authorised.

MPs also want ministers to rethink a decision to exclude financial harms from its Online Safety Bill and to beef up Project Bloom, a multi-agency task force set up to tackle pension fraud.