Meuser, Correa Introduce Bipartisan Bill to Crack Down on Predatory Online Scammers

WASHINGTON, D.C. — Today, Representatives Dan Meuser (PA-09) and Lou Correa (CA-46) introduced the Safeguarding Consumers from Advertising Misconduct (SCAM) Act to combat predatory online scam advertisements. The bill has a Senate companion introduced by Senators Ruben Gallego (D-AZ) and Bernie Moreno (R-OH).

Online platforms have become a primary channel for scams and digital advertising fraud, including fake giveaways, fraudulent animal sales, ads for nonexistent products, government impersonation schemes, romance and health scams, and sophisticated impersonations using AI-cloned voices and stolen images that target consumers and legitimate businesses. According to the Federal Trade Commission, fraud losses in 2024 are estimated at $195.9 billion, including $81.5 billion lost by older adults.

The SCAM Act requires online platforms to take reasonable steps to prevent fraudulent and deceptive ads, strengthens accountability when scams occur, and enhances enforcement of consumer protection laws by the Federal Trade Commission and state authorities.

As Chairman of the Financial Services Subcommittee on Oversight and Investigations, Congressman Meuser has spent the past Congress examining the rise in financial fraud and scam activity through hearings, roundtables, industry engagement, and direct constituent outreach. That investigative work found that nearly half of scams now originate on social media platforms.

While many social media companies have begun investing in scam detection and prevention tools, fraud losses continue to surge. Criminals are still able to purchase advertisements, impersonate legitimate businesses, and target vulnerable users at scale.

Specifically, the SCAM Act accomplishes the following:

• Bans paid scam ads by holding online platforms accountable when they profit from fraudulent or deceptive advertising and fail to stop it
• Requires real advertiser verification and fraud detection, including ID checks, impersonation safeguards, and clear user reporting tools
• Forces fast action on scams, with strict timelines to investigate reports and remove fraudulent ads
• Enables enforcement and accountability, empowering the FTC, states, and harmed consumers

“As Subcommittee Chairman of Oversight and Investigations, I learned Americans lose nearly $200 billion to financial fraud and scams; half of which originate from social media,” said Congressman Dan Meuser. “The SCAM Act is the next step in that investigation. Scammers should not be able to buy their way onto trusted online platforms and prey on vulnerable users. My legislation makes clear that when a platform profits from advertising, it has a responsibility to keep fraudulent ads off its site and protect consumers or face penalties. I’m appreciative of Congressman Correa’s partnership on this important legislation, which will help better protect Americans online.”

“Every day, millions of hard-working American taxpayers on Main Street are falling victim to social media ad scams that are cheating them out of their hard-earned money,” said Congressman Lou Correa. “Social media companies making money from ads have a responsibility to make sure they’re not fraudulent and put consumers first.”

“It is critical that we protect American consumers from deceptive ads and shameless fraudsters who make millions taking advantage of legal loopholes,” said Senator Bernie Moreno. “We can’t sit by while social media companies have business models that knowingly enable scams that target the American people.”

“Online scam ads are costing hardworking Americans billions of dollars every year, and we can't let platforms profit while families pay the price,” said Senator Ruben Gallego. “I'm proud to see our colleagues in the House stepping up to support efforts to crack down on this growing problem. This bipartisan bill will hold companies accountable and strengthen protections for consumers across the country.”

The SCAM Act has garnered broad support from industry leaders and consumer groups, including:

“ABA commends Reps. Meuser and Correa for introducing the bipartisan SCAM Act and for taking this important step to protect Americans from the growing fraud threat,” said Rob Nichols, President and CEO of the American Bankers Association. Each year, Americans lose billions of dollars to scams that originate in ads that appear on social media platforms, and this legislation requires social media companies to take reasonable steps to identify and prevent fraudulent and deceptive ads before they can do any damage. We urge lawmakers to support this legislation and join the banking industry and other stakeholders in the fight against fraud.” 

“There is nothing more important to Pennsylvania’s banks than their customers’ security," said Duncan Campbell, President and CEO of the Pennsylvania Bankers Association (PA Bankers). "PA Bankers greatly appreciates Rep. Meuser and Rep. Correa's introduction of the Safeguarding Consumers from Advertising Misconduct (SCAM) Act to require online platforms to take reasonable steps to avoid the display of fraudulent or deceptive commercial advertisements. Online fraud is at a crisis level in our country, and this legislation will serve to protect Pennsylvanians and all Americans from the scammers who are stealing billions of dollars each year. We thank the congressmen for their leadership, and we applaud their commitment to fighting fraud."

“AARP, which advocates for the more than 125 million Americans age 50 and older, is pleased to endorse the Safeguarding Consumers from Advertising Misconduct Act (SCAM Act),” said Bill Sweeney, Senior Vice President of Government Affairs at AARP. Online scam ads have become increasingly sophisticated and pervasive, with criminals exploiting advertising on major social media platforms to target older adults. By establishing strong protections and accountability measures, the SCAM Act will help safeguard older Americans from fraud and reduce the spread of harmful scam ads.”

"CBA applauds Rep. Meuser and Rep. Correa for introducing the Safeguarding Consumers from Advertising Misconduct (SCAM) Act,” said Lindsey Johnson, CEO of the Consumer Bankers Association. “This bipartisan, bicameral legislation takes the necessary common-sense steps to protect Americans from malicious actors by prohibiting online platforms from displaying fraudulent or deceptive advertising."

“The SCAM Act is a bicameral, bipartisan legislative solution that everyone should support,” said Erik Rust, Bank Policy Institute Senior Vice President & Head of Government Affairs. “Americans are shouldering higher costs and hardships due to the proliferation of fraud and scams, as nearly 3 in 4 U.S. adults have experienced some form of online scam or attack, many of which occur over social media and messaging platforms. We’re grateful for Representatives Meuser and Correa’s leadership in addressing this national crisis.”

“Community banks see firsthand the devastating toll that online scams and cyber-enabled fraud take on families, seniors, and small businesses across Pennsylvania and the nation,” said Kevin Shivers, President and CEO of the Pennsylvania Association of Community Bankers. “With the FTC reporting $12.5 billion in fraud losses in 2024 and the FBI attributing $13.7 billion to cyber-enabled crime alone, we applaud Reps. Meuser and Correa are acting decisively with legislation that cracks down on fraudsters exploiting tech platforms to target unsuspecting consumers.”

Read the full bill text HERE.

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