FTC Moves to Hold Tech Accountable for Impersonation Scams
Bloomberg Law | The Federal Trade Commission is developing a new rule that could hold social media platforms, digital marketplaces, and search engines accountable for enabling and amplifying impersonation fraud.
In a Bloomberg Law commentary, FTC Chairman Andrew Ferguson and Bureau of Consumer Protection Director Christopher Mufarrige argue that technology platforms have the tools to detect fraudulent advertisers and prevent scams, but lack sufficient financial incentives to act.
The scale of the problem is significant:
Nearly $3.5 billion in reported impersonation fraud losses in 2025
Eightfold increase in money lost to scams originating on social media since 2020
$16 billion in total reported fraud losses in 2025, up from $12 billion the previous year
The FTC points to a fundamental imbalance: platforms generate advertising revenue from systems that scammers exploit, while consumers and impersonated businesses bear the financial consequences.
As Ferguson and Mufarrige write:
“The platforms pocket the profits, American consumers bear the costs.”
The proposed rulemaking seeks to change those incentives. The FTC is requesting public comments on requirements that would encourage platforms to vet advertisers, identify fraudulent activity, and prevent impersonation scams.
At Operation Shamrock, we believe disrupting scams requires coordinated action from technology companies, financial institutions, law enforcement, and government. Holding platforms accountable for the infrastructure scammers exploit is an important step toward preventing harm before it occurs.
Read the commentary: If Big Tech Doesn’t Curb Scams, They’ll Answer for It: FTC Chair
