Senators Introduce SCAM Act to Combat Social Media Ad Fraud

U.S. Senators Ruben Gallego and Bernie Moreno have introduced the bipartisan SCAM Act, legislation that would require social media platforms to verify the identities of advertisers through government-issued identification or legal documentation.

The proposed bill aims to combat the growing problem of fraudulent advertising on social media platforms, where bad actors often hide behind anonymous accounts to run scams, spread misinformation, and engage in other deceptive practices.

Under the SCAM Act, platforms would need to implement verification systems that confirm advertisers are who they claim to be before allowing them to run paid campaigns. This could include requiring copies of driver's licenses, passports, or business registration documents.

The legislation comes amid increasing scrutiny of social media advertising practices and concerns about the role these platforms play in enabling fraud and manipulation. Similar verification requirements have been implemented in other countries, including the UK's Online Safety Act.

Industry experts suggest the bill could significantly impact how social media advertising operates in the United States, potentially increasing costs for legitimate advertisers while making it harder for fraudulent actors to exploit the system.

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