The Fraud Crime Hazard Prevention Act officially came into effect on July 31 this year to protect the public from fraud threats. The Ministry of Digital Affairs (the MODA) is drafting related subsidiary regulations. In addition to releasing the Criteria for Calculating Internet  Advertising Platforms of a Certain Scale on September 16, 2024, other accompanying subsidiary laws include amendments to the Subsidy, Reward and Assistance Regulations for Promoting Industry Innovation of the Ministry of Digital Affairs, the Report Formats of Technical Standards for Verifying the Identities of Internet advertising platform operators and the Transparency for Fraud Prevention Plans, the Regulations Governing the Disclosure of Information and Operational Procedures for Internet Advertisement, and the Notification Period Stated in Subparagraph 1 of Paragraph 1 of Article 32 of the Fraud Crime Hazard Prevention Act. These regulations were announced on November 28 and officially took effect on November 30.

The MODA stated that fraud prevention is an essential strategic action. The MODA has already announced the supervision of six operating platforms from four companies, including Google, YouTube, Line, Facebook, Instagram, and TikTok. According to the Fraud Prevention Act, regulated operators must fulfill multiple fraud prevention responsibilities.

The Fraud Prevention Act requires regulated operators to verify the identities of advertisers and investors. The recently announced subsidiary regulations specifically restrict the verification techniques and require operators to establish fraud prevention plans and regularly publish transparency reports to ensure compliance and guarantee the authenticity and transparency of advertisements. Additionally, the regulations stipulate the methods for disclosing advertising information and operational procedures, enabling the public to judge the credibility of Internet advertisements. It is also explicitly required that if relevant authorities notify regulated operators that their advertisements are fraudulent or involve fraud, they must remove, restrict access to, or stop broadcasting such advertisements within 24 hours or take other necessary actions to effectively prevent the spread of fraudulent advertisements and reduce the risks for customers, thereby purifying the advertising environment through public-private cooperation.

Furthermore, to promote fraud prevention initiatives, the MODA has established legal sources for subsidies, rewards, or assistance to foster public-private collaboration in strengthening fraud prevention efforts and combating fraud hazards to protect citizens' rights.

MODA further indicated that releasing the relevant subsidiary regulations would encourage internet advertising platform operators to fulfill their legal obligations, gradually reducing exposure, misperception, and loss. Meanwhile, through clear legal regulations, the MODA can monitor platform operators' compliance and information disclosure, comprehensively preventing fraud from the source and creating a safer digital advertising environment for the public.