Internet Scammers Need Oversight

Americans lose billions of dollars every year to online scams, and the problem is getting worse.

A recent report from the Consumer Federation of America found that Americans lost an estimated $148 billion to "online scams and crimes" in 2025, an increase of nearly 26 percent from the year before.

These are not just numbers on a page. They represent Americans losing money they need for groceries, rent, medical bills and retirement. And far too many of us have someone we personally care for who has fallen prey.

We all feel a responsibility to care for those who are vulnerable, especially older Americans, who are frequently targeted by scammers — but in this new world of digital technology, what can be done?

Personally, I have great resistance to government regulation and intervention bureaus as our government is massive in size and scope in far too many areas where it doesn't belong. But one role of government is to protect us from crime.

Fraud is a crime. And this crime is often invisible and abroad, so legislative oversight might be a necessary step we should explore to safeguard against such.

I came across a bill circulating through Congress called the Safeguarding Consumers from Advertising Misconduct Act, introduced by Reps. Lou Correa and Dan Meuser in the House and Sens. Ruben Gallego and Bernie Moreno in the Senate to address one growing part of this problem: fraudulent advertisements on online platforms.

My first thought was that if they named a bill "SCAM," these leaders need a marketing class. Who would have thought that the SCAM Act is actually designed to protect from scams?

Yet some really bad actors are using loopholes in law to lure folks into losing a whole lot of money on the internet, and this proposed SCAM Act in Congress is one attempt to stop them.

There has been a rise in scams, and technology is making them easier to create and harder to recognize. The FBI found that AI-enabled fraud accounted for an estimated $6.3 billion in losses in 2025. AI can help criminals create convincing fake images, voices, profiles and personalized conversations at a scale that would have been much more difficult just a few years ago.

The Consumer Federation of America reported that Facebook, Instagram and WhatsApp were the three platforms most commonly associated with scams, according to Better Business Bureau data. The same report found that older Americans remain a particularly vulnerable target, with people age 60 and older seeing reported losses increase by more than 60 percent in 2025.

One place we can perhaps reverse these trends is that ads on social media should be verified and transparent. It can be difficult for an ordinary consumer to tell whether an advertisement is legitimate or a sophisticated scam. A fake advertisement can appear to be a real business, a government agency, a financial institution or even someone a consumer knows.

The SCAM Act would require online platforms to take reasonable steps to prevent fraudulent and deceptive advertisements. The legislation would require advertiser verification, including identity checks and protections against impersonation and require platforms to respond to reports of fraudulent advertisements and remove scams. It would also strengthen enforcement by the Federal Trade Commission and state authorities and allow harmed consumers to pursue accountability under the legislation.

The principle behind the legislation is straightforward. If a company makes money from advertisements, consumers should have some assurance that the advertisements it sells are not fraudulent.

The only way to meaningfully address fraud is through accountability and enforcement.

Holding social media platforms accountable for fraudulent advertisements is about protecting Americans from criminals who use trusted websites to find their next victim. Our seniors in particular should not have to wonder whether the next advertisement in their social media feed is a legitimate offer or a trap.

Star Parker is founder of the Center for Urban Renewal and Education and author of "Necessary Noise, How Donald Trump Inflames the Culture War and Why this is Good News for America" (Hachette 2019).

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