The SCAM Act: Legislators Call for a “Know Your Advertiser” Framework

Introduced in February 2026 by Senators Bernie Moreno and Ruben Gallego, the proposed SCAM Act would require online platforms to strengthen verification of commercial advertisers in response to widespread fraudulent advertising and substantial global consumer losses. The proposal follows reports that major platforms have hosted large volumes of scam-related ads, while research indicates that 57% of adults encountered scams in the prior year and 23% lost money. Rather than relying solely on ad moderation, the bill would mandate Know Your Business and identity-verification measures to confirm business legitimacy, identify beneficial owners, detect synthetic identities, and prevent repeat offenders through shared fraud intelligence. The text argues that platforms across social media, marketplaces, dating, and job sites need integrated, real-time verification systems and proactive reviews of existing advertisers, including a 72-hour investigation requirement, and presents Socure’s RiskOS, synthetic-fraud detection, and portfolio-screening products as tools intended to support compliance.

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