Nebraska Law Targets Social Media Fraud, Protects Older Adults
Summary
Nebraska lawmakers passed legislation requiring social media platforms to detect and remove fraudulent advertising. The law, championed by the Nebraska Bankers Association with support from the American Bankers Association, requires platforms to verify advertiser identity, investigate user fraud claims, and remove fraudulent ads within five business days. A similar federal SCAM Act has been introduced in both chambers.
“Under the new law, social media platforms must have processes in place to verify the identity of advertisers and investigate fraud claims made by users.”
What changed
Nebraska has enacted new legislation targeting social media fraud, specifically aimed at protecting older adults from financial scams. The law requires social media platforms to implement processes for verifying advertiser identity and investigating user fraud claims, with a mandatory five-business-day window to remove confirmed fraudulent advertisements.
Social media platforms operating in Nebraska should review their current fraud-detection and advertiser-verification processes to ensure compliance with the new requirements. The legislation's passage was driven by the Nebraska Bankers Association, and compliance teams at affected platforms should monitor implementation guidance from Nebraska regulators.
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April 20, 2026 Reading Time: 1 min read Nebraska lawmakers have passed legislation requiring social media companies to take steps to detect and remove fraudulent advertising on their platforms.
The new requirements were part of legislation that combined several bills proposed by the Nebraska Legislature during its most recent session, including new language aimed at protecting older adults from financial fraud. Under the new law, social media platforms must have processes in place to verify the identity of advertisers and investigate fraud claims made by users. The platforms must quickly determine whether an ad is fraudulent and, if it is, must remove it within five business days.
A similar bill – the SCAM Act – has been introduced at the federal level in the House and the Senate.
The fraudulent advertising law was championed by the Nebraska Bankers Association, which invited Paul Benda, EVP for risk, fraud and cybersecurity at the American Bankers Association, to testify on its behalf before Nebraska lawmakers in February. In a statement today, Benda applauded the Nebraska Legislature and Gov. Jim Pillen for strengthening consumer protections.
“Banks have long been on the front lines of the fight against fraud, and this new state law represents an important step forward in protecting consumers, as other states consider similar approaches,” Benda said. “We applaud Nebraska’s lawmakers for their leadership and urge Congress to quickly pass the SCAM Act to provide increased consumer protection at the federal level.”
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