Social Media Ads Become a New Breeding Ground for Scams, Many Already Victimised

Be cautious when viewing advertisements on social media, as a finding in the United States has revealed that such ads can drain victims’ bank accounts. This modus operandi has even drawn the attention of local authorities, with two senators from the Republican and Democratic parties introducing draft anti-fraud regulations. The proposed bill, named the Safeguarding Consumers from Advertising Misconduct Act or SCAM Act, calls for social media platforms to be more proactive in combating fraud, including a requirement to verify their advertisers. In addition to verification, companies would also be required to act swiftly on fraud reports from the public and the government. Legal action from the Federal Trade Commission (FTC) and state attorneys general awaits those who fail to comply with the rules. “We cannot just stand by while social media companies have business models that knowingly enable scams targeting the American people,” said Republican Senator Bernie Moreno. In agreement, Democratic Senator Ruben Gallego stated that companies earning revenue from advertisements must ensure the content is not fraudulent. “If a company makes money from ads that run on its site, then that company is responsible for ensuring those ads are not deceptive,” Gallego said. Reuters previously reported that Meta earned approximately 10%, or US$16 billion, in 2024 from scam ads and other illegal products. The technology giant, which owns Instagram and Facebook, denied the allegations, calling the proportion of revenue from violating ads grossly exaggerated. Meta affirmed it continues to aggressively combat fraud on its platforms.