The news: The EU is investigating whether Apple, Google, and Microsoft are doing enough to curb online financial scams, per Ars Technica.

The European Commission (EC) will send formal requests for information under the Digital Services Act (DSA), targeting fake apps, fraudulent search results, and scam accommodation listings on Booking.com.

A worldwide problem: Tackling financial scams is emerging as a new priority under the DSA after regulators spent the past year on the protection of minors, online shopping, and election integrity.

Losses from online fraud exceed €4 billion ($4.7 billion) annually across the EU, with many experts suspecting the true number is much higher due to underreporting. 

According to the EU’s latest Consumer Scoreboard, 45% of consumers have encountered online scams in the past year. In comparison, Google and Morning Consult data show that 61% of US consumers have faced scam attempts via email, 56% through text, and 37% by phone. The pattern underscores regulators’ urgency to respond as fraud channels multiply across digital platforms.

Here’s what EU regulators are investigating:

• Apple and Google. Fake banking apps impersonating legitimate apps in mobile stores.
• Microsoft. Fraudulent search results and ads appearing on Bing that lead users to scam pages, resulting in financial losses.
• Booking Holdings. Fake listings taking payments without providing real bookings.

If found liable for failing to curb online fraud, the penalties can be up to 6% of the company’s annual global turnover.

Yes, but: Shifting full responsibility to platforms could backfire, forcing overzealous content takedowns that sweep up legitimate ads, apps, and listings; stifle innovation; and erode user trust in the process.

Big Tech pushback: Apple, Google, and Microsoft argue they already invest heavily in fraud detection and user safeguards. 

• Apple cited its App Store reviews as a fraud shield that rejected nearly 2 million app submissions and blocked more than $2 billion in fraudulent transactions in 2024, per iClarified.
• Google said it blocks hundreds of millions of scam results daily and will work constructively with the EC.
• Microsoft said it’s committed to online safety and pointed to ongoing efforts to boost transparency in Bing and its app store.

Big Tech’s response is boilerplate—the new EU demands could slow innovation and create uneven compliance burdens compared with non-European rivals. 

Our take: Ad campaigns appearing in search results, mobile apps, or Bing ads could face more scrutiny or be caught up in regulatory nets. Brands that lead with transparency and consumer protection will not only comply, but also gain an edge should platforms tighten controls.