Bipartisan SCAM Act Would Require Online Platforms to Crack Down on Fraudulent Ads

Senators introduce legislation to hold social media companies accountable for scam ads on their platforms.

Feb. 4, 2026 at 3:55pm

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Senators Ruben Gallego (D-AZ) and Bernie Moreno (R-OH) have introduced the Safeguarding Consumers from Advertising Misconduct (SCAM) Act, which would require online platforms to take reasonable steps to prevent fraudulent or deceptive ads that they profit from. If they fail to do so, the Federal Trade Commission (FTC) and state attorneys general could take civil legal action against them.

Why it matters

The SCAM Act aims to address the growing problem of scam ads on social media platforms, which have been estimated to account for up to 10% of Meta's revenue. These fraudulent ads, including those for e-commerce and investment schemes, illegal online casinos, and banned medical products, have resulted in billions of dollars in losses for consumers, particularly seniors.

The details

The SCAM Act would require online platforms to take reasonable steps to prevent fraudulent or deceptive ads that they profit from. If they fail to do so, the FTC and state attorneys general could take civil legal action against them. This comes after a Reuters report that Meta reportedly estimated up to 10% of its 2024 revenue, or $16 billion, came from scam ads. The report also found that Meta allegedly refused to block small fraudsters until their ads were flagged at least eight times, while bigger spenders were said to have accrued at least 500 strikes without being removed.

  • The SCAM Act was introduced by Senators Ruben Gallego and Bernie Moreno on Wednesday, February 4, 2026.
  • According to the FTC, Americans' estimated total loss from fraud in 2024 (adjusted for underreporting) was nearly $19 billion, with $81.5 billion of that coming from seniors.

The players

Ruben Gallego

A Democratic senator from Arizona who co-introduced the SCAM Act.

Bernie Moreno

A Republican senator from Ohio who co-introduced the SCAM Act.

Federal Trade Commission (FTC)

The federal agency that could take civil legal action against online platforms that fail to comply with the SCAM Act.

Meta

The parent company of Facebook, which reportedly estimated that up to 10% of its 2024 revenue came from scam ads.

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What they’re saying

“If a company is making money from running ads on their site, it has a responsibility to make sure those ads aren't fraudulent.”

— Ruben Gallego, Senator (Engadget)

“It is critical that we protect American consumers from deceptive ads and shameless fraudsters who make millions taking advantage of legal loopholes.”

— Bernie Moreno, Senator (Engadget)

What’s next

The SCAM Act will now go through the legislative process, and if passed, the FTC and state attorneys general will be able to take civil legal action against online platforms that fail to comply with the new requirements.

The takeaway

The SCAM Act represents a bipartisan effort to hold social media companies accountable for the proliferation of fraudulent ads on their platforms, which have resulted in billions of dollars in losses for consumers, particularly vulnerable populations like seniors. By requiring platforms to take reasonable steps to prevent these scams, the legislation aims to provide a meaningful deterrent and better protect consumers online.