On September 24, 2026 the Federal Trade Commission opened a question that matters to every small business that advertises online. It announced that it is considering whether to update its Rule on Impersonation of Government and Businesses, or take other action, to stop online platforms from using ad-optimization practices that may be furthering impersonation scams. This article walks through what the FTC reported, what its September consumer alerts show, and the short rule a business can adopt this week.
What the FTC reported
In its announcement the agency says consumers reported nearly $3.5 billion in losses to impersonation fraud in 2025, and that the true cost is likely far higher (FTC press release, September 24, 2026). It received more than 1 million reports about imposter scams that year.
The same release gives a second figure that should not be added to the first. Nearly 30% of consumers who reported losing money to scammers in 2025 said they were first contacted on social media platforms, with reported losses reaching $2.1 billion. That number covers all kinds of scams, not only impersonation, so the two totals describe different groups of people.
What the FTC is asking
The agency issued an advance notice of proposed rulemaking. It asks for public comment on how the ad tools of social media, search engines and other digital marketplaces may help scammers who impersonate businesses and government agencies in online ads. It also asks whether the answer is to amend the existing Impersonation Rule, write a new rule, or use non-regulatory measures such as vetting advertisers and removing confirmed scam ads. The deadline for comments will be 60 days after the notice is published in the Federal Register. The Commission vote to send it for publication was 2-0.
Four September examples, with dates
The consumer alerts the FTC published in September show what these ads look like in practice.
On September 1, the FTC warned that scammers set up bogus car dealership websites, cloning a real dealer's site, often using AI, down to the logos, listings and photos, so that buyers pay up front for a car that does not exist (FTC consumer alert).
Interested in implementing similar AI solutions? Discover how PATech Labs can help your business leverage cutting-edge artificial intelligence.
Learn About Our ServicesOn September 15, it described scammers posing as farm equipment businesses, selling fake equipment through social media ads and search results, and asking for thousands of dollars by wire transfer (FTC consumer alert).
On September 28, ahead of Open Enrollment, it warned that scammers and dishonest businesses sometimes pay to appear at the top of search results, using web addresses that look similar to government website addresses (FTC consumer alert).
The pattern behind them
Read together, the alerts show one pattern. An ad or a search result that looks real. A website that copies a real business or a government address. Then a request to pay up front, often by wire transfer, gift card, cryptocurrency or a payment app. The FTC says that once the scammers have the money, it is almost impossible to get it back. It also notes that social media companies do not always vet ads.
A short rule for your team
None of this needs new software to start. Four habits cover most of it.
- Type the official address yourself. Do not follow an ad or a sponsored result to a bank, agency, supplier or dealer. Type the name of the website directly into the search engine, or use an address you already know.
- Search the name with the word scam. The FTC suggests searching the company name with words like "scam," "review," or "complaint." If scammers are impersonating a real business you may also find glowing reviews, so ask to see the business in person when you can.
- Scroll past paid ads. Look for the small "Ad" or "Sponsored" labels, and for the .gov ending on government sites.
- Never pay up front by wire, gift card, crypto or payment app. No genuine supplier needs that. A request to do so is the signal to stop.
If something looks wrong, report it at ReportFraud.ftc.gov. The same checklist works for phone calls: our article on fake police calls and the callback rule covers the other half of the impersonation family.
PATech Labs builds AI automation for small businesses in the United States, including payment checks that run on every transaction and send exceptions to a person for approval. If you want the "no upfront payment without a second check" rule built into your workflow, talk to us.