A new survey from the American Bankers Association found that nine out of 10 voters support legislation requiring social media platforms to crack down on fraudulent ads and scams before they reach consumers.
The survey found that voters support the Safeguarding Consumers from Advertising Misconduct Act (SCAM Act) introduced in both houses of Congress earlier this year. The bill, S. 3774/H.R. 7548, is sponsored by U.S. Sen. Ruben Gallego (D-AZ) in the Senate and U.S. Rep. Dan Meuser (R-PA) in the House. The legislation would require social media companies to take steps to remove fraudulent advertising from their platforms to help stop scams before they start.
According to ABA’s survey, 87 percent of voters agree that online financial fraud is increasing, while nearly three quarters of the survey respondents said they were concerned that they or a family member could become a victim of online financial fraud. Nine in 10 voters agreed that social media companies should verify the identities of advertisers on their platforms to help prevent fraud.
“Americans are sending a powerful and unmistakable message: social media companies must do more to stop scammers from exploiting their platforms,” Rob Nichols, ABA president and CEO, said. “Consumers, families and businesses are paying the price when fraudulent ads are allowed to spread online. Voters overwhelmingly support common-sense measures like the SCAM Act that would require social media platforms to verify advertisers, remove scam ads quickly and take meaningful steps to prevent fraud before it occurs.”
The survey also found that 96 percent support requiring social media platforms take down fraudulent ads quickly once they are reported; 95 percent supported requiring platforms to put systems in place to detect and prevent scams before they reach consumers, and 93 percent support holding social media platforms financially accountable if they profit from fraudulent ads and fail to act.