ICBA supports legislation targeting online scam ads

ICBA signaled support for bipartisan legislation to combat predatory online scam advertisements.

Bill Details: Introduced in the House by Reps. Dan Meuser (R-Pa.) and Lou Correa (D-Calif.) following Senate introduction by Sens. Ruben Gallego (D-Ariz.) and Bernie Moreno (R-Ohio), the Safeguarding Consumers from Advertising Misconduct (SCAM) Act would:

• Bar online platforms from displaying paid scam ads.

• Require advertiser verification and fraud detection, including ID checks and user reporting tools.

• Apply strict timelines for online platforms to investigate and remove fraudulent ads.

• Enable enforcement by the Federal Trade Commission and states.

ICBA Support: In letters to the House and Senate sponsors, ICBA said this reform would have a real impact in reducing online scams and protecting American consumers.

Background: The lawmakers noted that online platforms have become a primary channel for scams and digital advertising fraud, including fake giveaways, fraudulent animal sales, ads for nonexistent products, and romance and health scams, with fraud losses reaching an estimated $195.9 billion in 2024.

Other Efforts: ICBA last fall shared recommendations to improve STIR/SHAKEN, a call authentication framework for the telecommunications industry designed to curb illegal "spoofing" of the phone numbers shown by caller ID.

ICBA Resources: Community banker resources on fraud and scams—including ICBA’s guides on check fraud and online fraud courses—are available on the ICBA website.