America is getting scammed—not just by criminals, but by the growing belief that banks or social media companies can somehow prevent every con artist on the planet from tricking someone out of their money. That’s not how fraud works, and it’s certainly not how scams work today.
First, the basics: fraud and scams are not the same thing. Fraud occurs when a criminal sneaks into your account and moves money without your permission. Banks have long-standing systems to spot that—and most of the time, they do. Scams, on the other hand, rely on something no software can perfectly catch: human emotion. A scammer convinces you to authorize the transfer yourself.
Scammers have come a long way from the old Nigerian prince emails. Today’s schemes use polished scripts, believable identities, even AI-generated videos to reel people in. These criminals prey on fear, trust, urgency, and isolation—not on weak bank security.
No bank system can detect panic in a grandparent who thinks a loved one is in trouble. No platform moderator can instantly spot every fake “advisor” or bogus business opportunity. Scammers target people, not platforms.
This is why the political instinct to “make banks or Big Tech fix it” misses the mark. And it’s not just Washington—state governments are jumping in with proposals of their own. The danger is that piling on new mandates and regulations could easily make things worse. Banks might feel pressure to delay or second-guess perfectly legitimate transactions. Social media companies could overcorrect and start sweeping up real users while scammers slip away into harder-to-monitor spaces. And, as usual, the extra compliance costs land squarely on consumers.
Meanwhile, scammers aren’t sitting still. They change their tactics the moment they hit a roadblock. If we’re serious about tackling this problem, we need everyone at the table:
Banks improving their warning systems and tools.
Tech platforms tightening verification and speeding up removals.
Law enforcement going after the organized networks behind these schemes.
Consumers equipped with straightforward information so they can spot red flags before it’s too late.
Scammers are constantly upping their game. Misguided laws and regulations—whether from Capitol Hill or state capitols—won’t outsmart them. In fact, they may unintentionally give criminals more room to operate. The best path forward isn’t blame or bureaucracy. It’s cooperation, education, and a focused effort to stop the actual criminals—not stifling the innovation and consumer choice that make our financial and digital systems strong.