📅 2026 Update: Recent Changes in Fraud Law and Reporting

Since the original article was written, there have been several key updates to fraud regulations and reporting procedures. These changes aim to enhance consumer protection and streamline the reporting process for various types of fraud. The information below highlights the most relevant updates since the article's publication.

📣 FTC Updates on Deceptive Advertising

In 2025, the Federal Trade Commission (FTC) revised its guidelines to improve enforcement against bait-and-switch advertising. This deceptive practice involves advertising a product at a low price to attract customers, then pressuring them to buy a more expensive item. The updated guidelines provide stronger tools for consumers to report such tactics.

🏷️ Stricter Regulations on Liquidation Sales

As of January 2026, the Department of Justice implemented new regulations for liquidation and going-out-of-business sales. These regulations require businesses to provide clearer disclosures to avoid misleading consumers. This change aims to protect shoppers from deceptive practices during sales that could be misrepresented.

✉️ Enhanced Penalties for Mail Fraud

In 2024, the Sentencing Commission increased penalties for mail fraud convictions. Mail fraud is now punishable by up to 20 years in prison and fines reaching $250,000 for individuals. This increase reflects the seriousness of mail fraud offenses and aims to deter such criminal activities.

💻 Online Reporting for Credit Card Fraud

In 2025, the Consumer Financial Protection Bureau introduced an online portal for consumers to report credit card fraud. This streamlined process allows victims to file complaints easily and efficiently. Reporting credit card fraud is now free and encourages quicker responses from authorities.

📌 Key Points Summary

  • The FTC strengthened guidelines against bait-and-switch advertising.
  • New rules for liquidation sales require clear consumer disclosures.
  • Mail fraud penalties have increased, reflecting the crime's severity.
  • Credit card fraud can now be reported online for free.
  • Consumers have easier access to report instances of fraud.

💡 Tips for Reporting Fraud

Review your specific situation with your attorney to ensure you understand your rights and options.

📞 Report Credit Card Fraud Quickly

If you notice unauthorized transactions on your credit card, contact your card issuer immediately. Filing a report through the Consumer Financial Protection Bureau's online portal is also advised to minimize your liability.

📬 Filing Mail Fraud Complaints

If you're a victim of mail fraud or have information about it, you can file a complaint. Complete the online form available on the U.S. Postal Inspection Service’s website.

Prompt reporting helps authorities investigate effectively.

🔍 Securities Fraud Reporting

Anyone with information about potential securities fraud can submit a tip. The Securities and Exchange Commission allows anonymous reporting through their online tip form or hotline. Timely tips can assist in investigations.

⏰ Understand Reporting Deadlines

While there are no strict deadlines for reporting mail and securities fraud, acting quickly is recommended. For credit card fraud, report unauthorized transactions within 60 days to limit your liability to $50.

🆓 Free Resources for Victims

Various government agencies offer free resources for fraud victims. The Consumer Financial Protection Bureau, U.S. Postal Inspection Service, and SEC's Office of Investor Education provide guidance to help individuals navigate the recovery process.

🏆 Services Ranked by User Reviews (2026)

The services listed below are relevant to fraud prevention and reporting. They provide resources that can help consumers deal with various fraud-related issues. The order follows Trustpilot data as of October 2026.

Remember that scores can change over time, and star ratings may reflect a variety of customer experiences.

🥇 1. Assurant

Assurant has been rated 3.7. It is known for its insurance services and consumer protection offerings, which can help with issues related to fraud. However, some reviewers note concerns about claims processing times, which may affect customer satisfaction.

🥈 2. Experian

Experian holds a Trustpilot score of 4.1. This service is well-known for credit monitoring and identity theft protection. Many users appreciate its features, but there are mentions of challenges with customer service responsiveness, which may impact user experience.

🆓 Free Government and Nonprofit Help

Victims of fraud can access various free resources from government agencies. The Consumer Financial Protection Bureau, U.S. Postal Inspection Service, and SEC provide valuable assistance and guidance for consumers dealing with fraud-related issues without any charges.

🔎 What to Compare When Choosing Services

  • 🛡️ Type of fraud coverage offered
  • 📞 Customer service responsiveness
  • 💰 Costs associated with their services
  • 📊 User reviews and overall satisfaction
  • 📅 Reporting and processing times

❓ Frequently Asked Questions

❓ What is bait-and-switch advertising?

Bait-and-switch advertising is when a business advertises a product at a low price to attract customers but then pressures them to purchase a more expensive item. The FTC has updated guidelines to combat this deceptive practice.

📬 How can I report mail fraud?

To report mail fraud, complete a complaint form on the U.S. Postal Inspection Service's website. This process is free and encourages prompt reporting for effective investigations.

💳 What should I do if I find unauthorized credit card charges?

Contact your credit card issuer immediately if you find unauthorized charges. You should also report the fraud through the Consumer Financial Protection Bureau’s online portal to protect your rights.

🏦 Are there penalties for securities fraud?

Yes, securities fraud can result in severe consequences, including up to 25 years in prison and fines of up to $5 million for individuals. The penalties reflect the serious nature of these offenses.

⏳ How long does it take to investigate fraud complaints?

The Consumer Financial Protection Bureau aims to acknowledge credit card fraud reports within 15 business days. The U.S. Postal Inspection Service typically starts mail fraud investigations within 30 days of receiving a complaint.

📅 Is there a deadline for reporting securities fraud?

There is no formal deadline for reporting securities fraud, but timely reporting is recommended to assist in investigations. Acting quickly can help authorities address the issue effectively.

⚖️ Recent Cases Involving Fraud

Recent court rulings have addressed various fraud-related issues, reinforcing the seriousness of offenses like mail and securities fraud. These rulings highlight the legal consequences that can arise from such crimes.

For more recent rulings, check out more rulings on the news page.

End of October 2026 Update






Promotional checks are written in an attempt to make fraudulent behavior appear legitimate. Promotional checks are written for a variety of different reasons including the lottery, credit cards, awards, mystery shopping, and sweepstakes giveaways.



 



 

Promotional Checks Defined


Fraudulent promotional checks are sent through the postal mail or email claiming that individuals won the lottery. The prize is typically large in size and came from nowhere. If an individual did not enter a lottery drawing, then a random check is likely fraudulent. A promotional check for a sweepstakes is similar to that of a lottery check. The sum of money awarded is significant, and it comes about abruptly. 



 



 



The promotional checks provided in Internet scams are bogus, but appear to look legit. Victims take these checks to nearby banks for deposit and end up in debt. The individual who deposits the checks is liable for the debt that is accrued through the process. The check can be drawn from an actual account that belongs to a real person and still be fraudulent. If the promotional check is copied or written against the will of the account holder, the bank will catch on. 



 



 



Other schemes that use promotional codes include job offers for personal or executive assisting. A scheme artist posts fake jobs in which an individual can assist a professional with errands, wire transfers, and supply pick ups. The schemer claims to be an executive out of the country on business who needs extra help. The job of the personal or executive assistant is to wait for packages to be sent full of checks that the assistant must cash.



 



 



When the promotional check arrives, the personal assistant is required to take them to the bank, cash it, and then wire it through Western Union, while keeping a small amount for payment. Unfortunately, after wiring the money, the assistant receives an account statement that is negative the exact amount of the promotional check. The assistant then must pay the bank back, while the schemer gets off without being tracked down.



 



 



The scheme artists that write promotional checks use other names, addresses, and accounts when issuing payment. In addition, they use aliases initially, when posting the job online. This allows the schemer to commit fraud while remaining anonymous. This also leaves the victim with debt in the majority of promotional check cases.



 



 



The lack of solid information makes tracing the culprit who is guilty of fraud impossible. Writing a promotional check is an easy way in which schemers commit mail fraud. The risk of getting caught is minimal and the victim almost always loses money.