SCAM Act May Be A New Line of Defense Against Fraud Flooding Our Social Media Feeds

Published: May 03, 2026 on our newsletter Security Fraud News & Alerts Newsletter.

A flood of fraudulent ads on social media has potentially propelled U.S. lawmakers to action. In a surprising twist, senators on both sides of the aisle introduced the Safeguarding Consumers from Advertising Misconduct Act, the SCAM Act. This is a bill aimed at reining in deceptive advertising that costs Americans billions every year. 

The legislation is responding to eye-opening estimates showing that users on platforms like Meta’s Facebook may be exposed to an estimated 15 billion scam ads every single day; meaning individuals could encounter a startling number of fraudulent ads in a very short time. 

What’s Driving the Bill

Lawmakers say scam ads range from bogus investment schemes, fake products, and illegal gambling sites to impersonations of trusted brands and government entities. These ads disproportionately target older Americans and other vulnerable groups. The Senators argue that social media platforms currently lack strong accountability, profiting from paid advertisements without ensuring they’re legitimate. In fact, Meta itself estimated at the end of 2024 that it would make approximate $16 billion by running these scam ads. Wowza!

What the SCAM Act Would Do

The SCAM Act would require online platforms to take “reasonable steps” to prevent and remove fraudulent ads, implement real advertiser verification (including identity checks), and provide clear reporting tools for users. It would also give additional power to the Federal Trade Commission and state authorities to crack down when scams slip through.

Who’s Backing It

Support spans both sides of the aisle and multiple sectors. Consumer advocates like AARP and industry voices such as the American Bankers Association hail the bill as a common-sense defense against online fraud. 

As scam ads continue filling feeds and wallets, the SCAM Act seeks to turn the tide — forcing platforms to take responsibility for the ads they host rather than letting fraud flourish unchecked.

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