Privacy Builds Trust: How Compliance Defends Against Ad Scams And Spams

One minute, you are checking emails or scrolling through social media. Next, your money is gone, your data is leaked, and you are left wondering how this even happened. It does not always take a complicated hacker attack. Sometimes, it is just a simple convincing message, a fake job offer or a link you should not have clicked.

INTRODUCTION:

From ordering groceries on Blinkit to medicines on Trumeds, businesses and customers found new heights of ease and accessibility of goods and services. But this convenience also brought new responsibilities. For you (as a customer), it is simply an addition of handling and delivery charges, but for companies, they are expected to practice strict adherence to privacy compliance.

In the simple non-observance of privacy compliance practices, we as customers face the consequences: personal data breach, risk to personal information, targeted advertising, phishing, hacking, etc. Something as common as advertisements is the best path for outsiders to disrupt the digital ecosystem. These unwarranted “outsiders” break into the servers of companies, steal information and create ground for malicious practices such as fraudulent advertising and unsolicited mass communication (ad scams and spams) to harass you financially or mentally.

Even if a business follows the privacy compliance norms, a small error in practicing these norms leads to disruption of trust between customers and businesses. Businesses also suffer in the form of wasted ad budgets, reputational harm, and a steady erosion of customer trust. Over time, even legitimate advertising loses its impact, and confidence in online transactions weakens across the digital economy.

That’s why compliance with privacy laws emerges as a critical line of defence against ad scams and spams. Legal frameworks like the Digital Personal Data Protection Act (DPDP) and the General Data Protection Regulation (GDPR) enforce responsible personal data usage and the prevention of its breach.

WHY ARE ADVERTISEMENT SCAMS AND SPAMS TROUBLING?

Advertisement scams and spams have become some of the most persistent challenges in the digital economy, troubling users, businesses, and platforms alike. At their core, these practices undermine the trust upon which online interactions are built. When individuals repeatedly encounter fraudulent ads or unsolicited spam messages, they begin to doubt the credibility of digital platforms. This mistrust does not remain confined to malicious actors alone but extends to legitimate advertisers as well, thereby weakening the effectiveness of online marketing and diminishing consumer confidence in digital transactions.

The troubles impact the following three-fold:

1. Individual/ Customer:

Fake promotions via ad scams and spams cost individuals or customers heavy monetary loss, psychological burden and security threats. A normal person cannot assess the legitimacy of digital communication. Therefore, multiple cases of scams and spams have been reported every day.
According to the Indian Cybercrime Coordination Centre, Ministry of Home Affairs (IC4), multiple case reports of people having lost around INR 120.30 crore due to digital arrest scams in the first quarter of 2024 alone.[1] For instance, a 49-year-old Mumbai IT professional lost about ₹1 crore to a fake stock market ad that fabricated success stories.[2] The scam highlights the urgent need for vigilance and stronger compliance measures to curb online fraud.

2. Business/ Corporation:

On the business side, companies suffer wasted advertising budgets, reputational damage, and declining engagement when users perceive their platforms as unsafe, which also invites regulatory scrutiny and potential legal liabilities under data protection laws.
Most companies globally (approx. 92%) have incurred financial losses due to deepfake fraud. The average cost per deepfake incident is nearly USD 450,000, with many firms losing USD 500,000+, especially in fintech.[3]

3. Digital Ecosystem Erosion:

Rampant scams and spam reduce confidence in online transactions and digital communication. The instances of digital arrest were increasingly high, involving higher levels of psychological manipulation. Victims receive calls claiming they are linked to a serious crime, such as drug trafficking, rape, or even murder.

These illustrations highlighted how scams intertwine with psychological manipulation, daily norms, and technological loopholes, making regulatory compliance essential.

Additionally, such practices are widespread in the digital age. A thin line difference exists between the real and the fake advertisements. Therefore, the company and its subsidiaries need to adhere to privacy-compliant procedures to prevent the irrelevant diversion of customers’ personal information.

LEGAL PROTECTION AGAINST AD SCAMS AND SPAMS:

This section analyses DPDP, GDPR, and the Information Technology (IT) Act 2000 to highlight the essential nuances for privacy-compliant businesses. Privacy and cyber laws act as safeguards against such exploitation of ad scams and spams.

You are in control!

As a customer, the right to manage consent for themselves or via a hired Consent Manager exists. Law requires free, informed, and revocable consent.

If your consent is strictly enforced, you should not receive random marketing messages from companies you have never interacted with. This reduces the “noise” in which scam messages often hide. Many scams piggyback on databases collected without consent (phone numbers, emails, etc.). By requiring consent for every promotional use and giving people the right to withdraw it, the law cuts off the fuel scammers rely on: uncontrolled access to personal data.[4]

Therefore, consent is essential. As a customer, in the background, you will also stay informed of the usage of your personal information, and if you are still receiving the “messages”, the company may be breaking the law.

DATA MINIMISATION & PURPOSE LIMITATION:

Your personal data collected must be adequate, relevant, and limited to what is necessary for a clearly defined purpose.[5][6] Organisations are prohibited from collecting or reusing excessive information for unrelated objectives without new consent. Ad scams often rely on bulk data harvesting of phone numbers, emails, or personal identifiers collected unnecessarily by apps or websites. If companies are legally bound to collect only the bare minimum, less surplus data can be leaked, sold, or hacked for scam operations.

Furthermore, purpose limitation prevents a business from collecting data “for service delivery” and then secretly repurposing it for targeted advertising. This restriction ensures customers’ data can not quietly flow into spam databases.

If a food delivery app is asking for your passport details, they are not just delivering food, but your information to an unauthorised third party.

CROSS-BORDER DATA TRANSFERS:

Companies store the data in global cloud services. While primarily, you may have signed up for the utilisation of information by the company alone, without proper rules, the data can be easily accessed by any unauthorised party. Under the DPDP Act, the Indian government may restrict transfers of personal data to certain countries.[7] Similarly, the GDPR allows data transfers outside the EU only if the receiving country ensures either an “adequate” level of protection or contractual safeguards.[8]

Without cross-border rules, companies could offshore your data to places with lax regulation and then sell it to spammers or scammers. Transfer restrictions block such practices. As a customer, you can ensure that your data will not be transferred to another country behind your back.

DATA MAPPING AND RETENTION:

Companies can not keep your data forever!

Under global privacy frameworks, retention and mapping obligations serve as critical safeguards against the misuse of personal data for scams and spams. The GDPR requires that personal data be stored no longer than necessary for the purpose it was collected[9]. For instance, deleting marketing contact lists once campaigns conclude or consent is withdrawn, while retaining billing data for statutory tax purposes. Simultaneously, RoPA ensures that every flow of personal data is mapped and auditable for as long as it is processed and for a reasonable period afterwards.[10]

India’s DPDP Act, 2023, similarly mandates that companies erase personal data once its purpose is fulfilled or consent is withdrawn, unless retention is required by law, emphasising purpose limitation strongly.[11]

Therefore, if you have unsubscribed from marketing or newsletter emails, you must stop receiving them.

TARGETED ADVERTISEMENT:

You have the right to say NO to personalised ads.

Restrictions on targeted advertising form one of the most direct legal defences against ad scams and spam. The GDPR provides you the Right to Object against the processing of personal data for direct or personalised marketing, effectively forcing companies to halt targeted ads if a customer opts out. Similarly, the DPDP Act empowers individuals to reject or withdraw consent for profiling and behavioural targeting at any time.

While your children’s data is also used to produce targeted advertising. The EU further strengthens this by prohibiting targeted advertising to minors and restricting the use of sensitive personal data (race, health, religion, etc.) in ad profiling[12]. Likewise, the DPDP Act requires companies not to carry out direct targeted advertising to children. They can also not carry out tracking/behavioural monitoring of children.[13]

Companies cannot indefinitely rely on implied or blanket consent for marketing outreach, which is great for preventing constant spamming.

IT ACT 2000:

The IT Act works like India’s online safety guard. It makes it a crime for fraudsters to create fake websites, send phishing ads, or pretend banks and companies just to trick people.[14] The government also has the power to block scam websites, shady betting apps, or harmful online ads that put people at risk.[15]

The law requires companies to protect your data adequately, and if they do not, they can be held responsible for any misuse.[16]

Identity theft, which is frequently linked to targeted scams that misuse stolen or illegally profiled personal data for ad targeting, is also a punishable offence[17]

WHAT IS THE INDIAN GOVERNMENT DOING RIGHT NOW?:

TRAI has rules for telemarketers to register with the telecom operators. Every SMS must be labelled as Service (S), Promotional (P), or Government (G). It helps people instantly spot if a message is just marketing or a genuine government notice, making it harder for fraudsters to pretend.[18]
The government has launched a portal where anyone can report suspicious calls, SMS, or WhatsApp messages. Fraudulent numbers and devices can then be blocked permanently thereafter.[19] By disconnecting fraudulent connections, blocking misused devices, and ensuring greater transparency. These initiatives complement privacy laws like the DPDP Act and cyber laws under the IT Act, strengthening accountability, reducing misuse of personal data for targeted scams, and curbing the anonymity that fuels large-scale fraudulent advertising and spam.
CERT-In Advisory CIAD-2024-0050: Preventing Online Scams[20] is a 2024-launched initiative warning the public about online scams that use “pressure tactics” to force people into making payments or sharing sensitive information.
While CERT-In is a very active body, it has recently announced (September 2025) a joint venture with Amazon India to help recognise consumers’ online scams by initiating grassroots-level campaigning at the national and regional levels [21].

While CERT-In is a very active body, it has recently announced (September 2025) a joint venture with Amazon India to help recognise consumers’ online scams by initiating grassroots-level campaigning at the national and regional levels [21].

CONCLUSION

Privacy legislations like the DPDP Act and the GDPR aim to get at the root of scams and spams by regulating how your personal data is gathered, stored, and used. Besides the protective measures, privacy compliance practice also exerts accountability on businesses by making them as privacy-compliant as possible.

Advertising methods must be measured against the legal criteria. In essence, privacy compliance not only governs business practices but also breaks down the very environment upon which scam communication depends. The laws undermine the foundations of scam activities and rebuild trust in digital interactions. This not only safeguards you against such nuisance but also enables businesses to provide a smoother experience to their customers, rebuilding trust in digital interactions and delivering meaningful experiences.

[1] https://indianexpress.com/article/india/indians-lost-rs-120-crore-in-digital-arrest-frauds-in-january-april-2024-9641952/

[2] https://www.indiatoday.in/technology/news/story/mumbai-man-loses-rs-116-crore-after-clicking-on-an-online-advertisement-here-is-how-you-can-be-safe-2611054-2024-10-04

[3] https://www.cfo.com/news/most-companies-have-experienced-financial-loss-due-to-a-deepfake-regula-report/732094/

[4] DPDP, Act 2023, S. 4 & 6

[5] DPDP, Act 2023, S. 8

[6] GDPR, Article 5(1)(b) & (c)

[7] DPDP Act, 2023, S. 16

[8] GDPR, Articles 44–50

[9] GDPR, Article 5(1)(e)

[10] GDPR, Article 30

[11] DPDP Act, 2023, S. 8(7)

[12] The Digital Services Act, EU

[13] DPDP Act, 2023, S. 9

[14] IT Act, 2000, S. 66D

[15] IT Act, 2000, S. 69A

[16] Section 43A, along with the Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011

[18] Telecom Commercial Communications Customer Preference Regulations (TCCCPR)
https://www.trai.gov.in/sites/default/files/2025-02/Regulation_12022025.pdf

[19] https://www.pib.gov.in/PressReleasePage.aspx?PRID=2011383

[20] https://www.cert-in.org.in/s2cMainServlet?pageid=PUBVLNOTES02&VLCODE=CIAD-2024-0050#:~:text=Do%20not%20panic%2C%20as%20scammers,calls%2C%20especially%20to%20unknown%20numbers.

[21] https://www.tribuneindia.com/news/amazon-india/i4c-amazon-jointly-launch-pan-india-awareness-campaign-against-online-frauds-scams

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