The SCAM Act (Safeguarding Consumers from Advertising Misconduct Act) requires online platforms like Facebook, TikTok, Instagram, and similar social media sites to take responsibility for fraudulent and deceptive ads they display. Right now, scammers use these platforms to run fake giveaways, impersonate businesses, sell nonexistent products, and commit romance and health scams—costing Americans nearly $196 billion in 2024 alone. The bill makes it illegal for platforms to show these fraudulent ads if they accepted payment to display them but didn't take reasonable steps to prevent the scams. Platforms must now verify who their advertisers actually are (checking government ID and physical location), set up systems to detect and remove fraudulent ads within 24 hours of discovery, and provide users with an easy way to report suspicious ads. If platforms follow an approved fraud-detection program, they get legal protection. The Federal Trade Commission will write the detailed rules within a year and can fine platforms that violate the law. States can also sue on behalf of their residents, and individual consumers who lose money to scams can take platforms to court to recover damages. Importantly, the bill limits Section 230 protections—a law that previously shielded platforms from liability for ads they displayed—so platforms can no longer hide behind that shield when it comes to paid fraudulent advertisements.