WASHINGTON — Today, Representative Lou Correa (CA-46), alongside Rep. Dan Meuser (PA-09), 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.
“Every day, millions of hard-working American taxpayers on Main Street are falling…
Identity theft is the “foundational” fraud upon which many other crimes are built. It involves the unauthorized acquisition and use of a person’s personal identifying information (PII), such as an ID number, Social Security number, or passport details.
- How it works: Fraudsters obtain PII through data breaches, mail theft, or “social engineering” (tricking people into revealing details). Once they have this data, they can open new bank accounts, apply for credit cards or loans, and even receive medical treatment under your name.
- Synthetic Identity Fraud: A sophisticated variation where criminals combine real and fabricated information to create a completely new, “synthetic” person. This is particularly difficult to detect because there is no single victim to report the suspicious activity initially.