On April 8, GAO published a report titled “Consumer Protection: Actions Needed to Improve Complaint Reporting, Consumer Education, and Federal Coordination to Counter Scams” addressing the growing issue of scams targeting U.S. consumers. The report, produced by GAO in response to requests from members of Congress, evaluated the federal government’s response to scams, focusing on the need for developing a comprehensive government-wide strategy for collecting and evaluating scam-related data, and preparing consumer education efforts. GAO found that, while each of the 13 federal agencies it interviewed engaged in efforts to counter scams, there was no overarching strategy guiding these efforts across different agencies, leading to potential fragmentation and inefficiency.
GAO also identified data limitations in how agencies like the CFPB, FBI, and FTC collect and report scam-related complaint data directly from consumers, hindering the ability of the agencies to determine the total number of scams and associated financial losses with precision. The report also noted that there is no single, government-wide estimate of the total number of scam complaints made by consumers and stated that improved data collection and the development of common definition of “scams” are essential for understanding the scope of the problem and developing effective countermeasures. Additionally, GAO found that while several agencies provided a variety of consumer education resources, the agencies do not measure the effectiveness of these educational efforts. The report reasoned that evaluation of the effectiveness of educational efforts could enhance consumer protection by improving the ability of consumers to recognize and avoid scams.
The report made 16 recommendations directed at the CFPB, the FBI, and the FTC. The recommendations include the development of a government-wide strategy to be led by the FBI, improved data collection and reporting across the three agencies, and evaluating consumer education outcomes. In response to GAO’s report, the FBI disagreed with some recommendations, including recommendations related to developing a single government-wide approach for scams. Similarly, the FTC raised concerns with agencies agreeing to a common definition of scams, given the differing scope of each agency’s authority. However, GAO maintained that its recommendations are valid and necessary for a coordinated and effective federal response to the escalating threat of scams.
[View source.]
