A unified strategy could provide more effective consumer protection
of ConsumerAffairsKey takeaways
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Lack of a unified strategy: Despite growing threats from scams, no government-wide strategy currently exists to guide federal agencies anti-scam efforts, resulting in fragmented and uncoordinated actions that leave consumers increasingly vulnerable.
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Data and impact gaps: Inconsistent data collection and the absence of a national scam estimate hinder a comprehensive understanding of the scope and cost of scams. Additionally, agencies do not measure the effectiveness of their consumer education campaigns, limiting their ability to improve public awareness and protection.
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Urgent need for coordinated action: The GAO issued 16 recommendations to address these shortcomingsincluding developing a unified strategy, standardized definitions, and improved data and education metricsthough some agencies pushed back, highlighting the challenge of building consensus for a cohesive federal response.
A new report by the Government Accountability Office (GAO) warns that scams often targeting unsuspecting consumers with technologically sophisticated deception are a mounting threat in the U.S. Despite efforts by multiple federal agencies to address the issue, the GAO found that there is no overarching, government-wide strategy to combat scams, leaving agencies uncoordinated and the public increasingly vulnerable.
The watchdog agencys findings spotlight a fragmented federal approach to tackling scams, even as technological evolution fuels their growth and complexity.
Scammers typically contact victims under false pretenses, manipulating them into providing payment or personal information. In 2023 alone, the FBI received an estimated 589,400 scam-related complaints, totaling more than $10.5 billion in financial losses.
A patchwork of efforts
The GAO reviewed the activities of 13 federal agencies engaged in combating scams, including the FBI, the Consumer Financial Protection Bureau, and the Federal Trade Commission. While each agency compiles complaint data and provides consumer education, their efforts lack coordination and strategic alignment.
The GAO emphasized that none of the agencies were aware of a formal, government-wide anti-scam strategy. Existing federal strategies, such as those addressing cybercrime, only partially overlap with scam-related issues and do not extend across agencies. The FBI is reportedly developing a cyber-enabled fraud strategy, which GAO suggests could serve as a foundation for a broader, coordinated approach.
A government-wide strategy would better position agencies to coordinate and strategically target their efforts, the report concludes.
Incomplete data
One of the major barriers to effective response is inadequate data, the report found. While the CFPB, FBI, and FTC track scam-related complaints, data collection inconsistencies prevent the government from calculating the total volume of scams or the associated financial damage. For instance, definitions and categorizations vary by agency, and there is no unified national estimate of scam frequency or losses.
The report also criticized the lack of outcome-based evaluation for consumer education campaigns. Although agencies like the CFPB and FTC offer a range of educational materials aimed at helping the public recognize and avoid scams, none systematically measure the impact of these resources.
Without evaluating these efforts, agencies lack insights into whether theyre making a meaningful difference, GAO stated.
Recommendations
To address these gaps, the GAO issued 16 recommendations to the relevant agencies. These include:
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Developing a cohesive, government-wide strategy to counter scams.
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Establishing a national estimate of scam frequency and financial losses.
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Creating a consistent definition of scam across federal agencies.
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Evaluating the effectiveness of consumer education initiatives.
The FBI, however, disagreed with three of the recommendations, citing concerns about feasibility and agency scope. The FTC did not explicitly agree or disagree with five recommendations directed at it.
Despite this, the GAO insists the recommendations are necessary and achievable, emphasizing the urgent need for a more unified, data-driven response to protect consumers from increasingly costly scams.
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Posted: 2025-04-09 15:47:20
