FTC seeks comment on impersonation rule update to block platform scam ads
The FTC announced today it is considering updating its Impersonation of Government and Businesses Rule after consumers reported nearly $3.5 billion in impersonation fraud losses last year. In 2025, the agency logged more than 1 million imposter‑scam complaints and nearly $3.5 billion in losses, and nearly 30% of victims said they were first approached on social media, where losses totaled $2.1 billion.
The Advance Notice of Proposed Rulemaking, to be published in the Federal Register, asks whether platforms should be required to stop impersonation ads from reaching consumers. It invites comment on how ad‑optimization tools from social media, search engines and other digital marketplaces amplify impersonation scams and whether those tools constitute unfair or deceptive practices. The notice also seeks input on possible regulatory responses, including amending the existing impersonation rule, creating a new rule, or adopting non‑regulatory measures.
“Free markets depend on trust, transparency and consumers’ ability to make informed choices. Impersonation scams—especially when amplified by digital platforms that profit from them—do more than rob Americans of their hard‑earned money,” Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection said.
Impersonation scams have topped the FTC’s fraud‑complaint list in recent years, with the agency logging over 1 million reports and nearly $3.5 billion in losses in 2025. The ANPRM notes that these scams are amplified by search engines, social media and other digital marketplace platforms that profit from optimizing ads for third parties, regardless of the advertisers’ legitimacy.
What we know
Consumers reported nearly $3.5 billion in losses to impersonation fraud last year, and the true cost is likely far higher.
In 2025, the FTC received more than 1 million reports about imposter scams from consumers, who reported losing nearly $3.5 billion to such scams.
For example, nearly 30% of consumers who reported losing money to scammers in 2025 said they were first contacted on social media platforms, with reported losses reaching $2.1 billion.
The Federal Trade Commission announced today that is considering whether to update its Rule on Impersonation of Government and Businesses or take other action to prevent online platforms from engaging in ad-optimization practices that may be furthering impersonation scams.
The ANPRM notes that impersonation scams have been amplified by search engines, social media and other digital marketplace platforms that profit from optimizing online ads for third parties, regardless of whether the third parties are legitimate.