Following the Knesset Science and Technology Committee’s initial discussion on algorithmic scams — triggered by ISOC-IL’s landmark study Algorithmic Scams — the Committee reconvened on November 12 along with the Knesset Subcommittee on Artificial Intelligence for a deeper examination of the issue. The meeting was convened at the initiative of the Israeli Securities Authority, which voiced an urgent need to explore possible measures to protect investors affected by online financial fraud schemes. Edan Ring (ISOC-IL VP of Community Affairs), Yonatan Ben-Horin (Manager of the ISOC-IL Internet Safety Hotline), and Nitsan Yasur (ISOC-IL Disinformation and Digital Investigations Lead) represented ISOC-IL at the meeting, providing expert insights based on ISOC-IL’s research and helping legislators navigate one of the fastest-growing digital threats to Israeli social media users.
Read the full-length ISOC-IL report here: Algorithmic Scams
This latest session marked a significant development: not only Members of Knesset, but now major state regulators, namely the Israel Securities Authority, are actively pursuing solutions to the challenges exposed by our research and demanding action. The ISA has initiated direct engagement with Meta (owner of the platforms Facebook and Instagram), urging adoption of financial-advertiser verification mechanisms already used in some jurisdictions — a two-step process in which advertisers first obtain regulatory approval or exemption locally, then seek to run ads on platforms, triggering a second verification before publication. Regulators in the UK, Australia and other countries have adopted this model, and the UK has consequently seen a sharp drop in paid scams tied to securities advertising there.
Photo credit: Noam Moshkovitz/Knesset Spokesperson’s Office. Front row from left to right: Representatives from Ministry of Communications, ISOC-IL (Edan Ring and Nitsan Yasur), Ministry of Justice, Meta, TikTok, and Google
An International Push for Responsible Financial Advertising Online
The growing momentum is not limited to national regulators. In May 2025, the International Organization of Securities Commissions (IOSCO) published a report (PDF) addressing risks posed by financial scams and misleading investment promotions on social media and digital platforms. The report calls for platform providers to implement stricter due-diligence and verification procedures for investment service advertisers, to check that advertisers are authorized to operate in a target market, and to cross-check them against registries of unauthorized or previously sanctioned firms — such as the global I-SCAN alert network newly launched by IOSCO.
In doing so, regulators and platforms worldwide are embracing a coordinated, proactive approach to investor protection. While digitalization has broadened access to financial markets and opportunities, it has also amplified risks — retail investors are losing large sums to investment fraud initiated via paid social media ads or influencer content.
For Israel, aligning local regulation with global best practices — and applying them in the context of the Algorithmic Scams findings — can significantly reduce the risk of financial fraud before it reaches users. The ISA’s push with Meta and the broader conversation in the Knesset reflect this urgent priority.
Meta’s representative responded that it has begun testing its advertiser-verification system for financial services in Israel, with plans for a full rollout by mid-2026. Meanwhile, MK Orit Farkash-Hacohen called on the Ministry of Justice to expand the ISA’s regulatory authority over social media platforms, and the police recommended establishing a National Coordinating Body to tackle online financial fraud.
Edan Ring, ISOC-IL’s VP of Community Affairs, told the committee that it is essential to develop a similar verification process for other products and services that frequently appear in scams—such as medical treatments and health products—which primarily target older users. Ring stressed the importance of state-led enforcement and implementation across all platforms operating in Israel, and called for clear transparency requirements that would obligate platforms to provide the public with information about their identification and blocking of malicious actors in Israel.
These questions will remain central as ISOC-IL continues to engage with policymakers and state institutions in shaping an effective national response. ISOC-IL remains committed to supporting these efforts and contributing expertise. We will continue working closely with regulators and platforms, offering research-based recommendations to inform balanced, effective regulation — safeguarding consumer protection while preserving freedom and innovation in Israel’s digital ecosystem.
View the full Science and Technology Committee session below: