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…
This remains the most prevalent form of financial crime globally. It targets the direct access points to your money: your cards and your bank accounts.
- Skimming: Criminals use small devices called “skimmers” placed over ATM or point-of-sale card slots to capture the data from your card’s magnetic strip.
- Card-Not-Present (CNP) Fraud: This occurs during online shopping where a physical card isn’t required. Thieves use stolen card numbers, expiry dates, and CVV codes to make unauthorized purchases.
- Account Takeover (ATO): A hacker gains access to your online banking credentials (often through malware or phishing) and changes the contact details or passwords, locking you out while they drain your funds.