Currently, most ads broadcast on TV and Radio are pre-approved by industry bodies Clearcast and Radio Central before being aired, which is not the case for those that appear on YouTube.
The Liberal Democrats argue this means "online, irresponsible advertising can too often proliferate before any intervention to review it or take it down".
Max Wilkinson MP, a culture spokesperson for the Liberal Democrats said: "It's clearly not right that a platform now more watched than almost any traditional broadcaster is still operating under a 'lighter touch' advertising regime.
"Regulations need to catch up with the reality of how people are watching content and unscrupulous advertisers must not be allowed to use loopholes to exploit people."
"We cannot allow a two-tier system where traditional broadcasters face robust scrutiny, while a digital giant like YouTube is allowed to mark its own homework.
"It's time for the regulator to treat YouTube adverts much more like TV and radio adverts, to protect UK consumers from misleading or harmful content. The government needs to act now."
The Advertising Standards Authority (ASA) monitors TV, radio and online adverts and handles complaints after they have been broadcast.
An ASA spokesman said: "The scam ads that the Liberal Democrats are highlighting are fraudulent and tackling them falls to Ofcom under the Online Safety Act, which is designed to hold platforms to account for tackling and deterring fraud on their services.
"We readily support Ofcom's efforts to carry out this work and will continue to and play a disruptor role by reporting them and working with platforms to have them removed."
Earlier this year, the ASA said that in 2024 it received 1,691 reports of potential scam ads online, 177 of which were flagged to online platforms.
It said the biggest scam trends included using AI to create deepfake videos of celebrities, politicians or members of the Royal Family endorsing their products.
One scam ad sent to the ASA depicted King Charles recommending a cryptocurrency investment.
