📅 2026 Update: Recent Changes in Fraud Law

Since the original article was published, there have been several important updates related to fraud law in the United States. These changes impact how different types of fraud, including pump and dump schemes, are addressed. Readers can find these updates below, followed by the original content of the article.

📝 FTC Updates on Deceptive Advertising

In 2025, the Federal Trade Commission (FTC) revised its guidelines to strengthen enforcement against deceptive advertising practices. This includes tighter rules against bait-and-switch tactics, which can mislead consumers into buying more expensive products than advertised. This update is particularly relevant to securities fraud, as misleading advertising can be a part of such schemes.

🚫 Stricter Regulations on Liquidation Sales

As of January 2026, the Department of Justice implemented new regulations regarding liquidation and going-out-of-business sales. Businesses must provide clearer disclosures about these sales to prevent misleading practices. This change aims to protect consumers from scams that can lead to financial loss, including those tied to fraudulent securities offerings.

📬 Enhanced Penalties for Mail Fraud

In 2024, the Sentencing Commission increased penalties for mail fraud convictions. This change reflects the seriousness of these offenses, with potential sentences of up to 20 years in prison and fines. Stricter penalties highlight the ongoing fight against fraud and the importance of reporting suspicious activities.

💻 Online Reporting for Credit Card Fraud

In 2025, the Consumer Financial Protection Bureau launched an online portal for consumers to report credit card fraud. This makes it easier for victims to report unauthorized transactions quickly. Fast reporting is crucial to minimize financial liability, especially since unauthorized charges can be reported with limited liability if done within a specific timeframe.

📌 Key Points Summarized

  • 📝 FTC guidelines now strengthen enforcement against deceptive advertising.
  • 🚫 New regulations require clear disclosures during liquidation sales.
  • 📬 Enhanced penalties for mail fraud underscore its seriousness.
  • 💻 An online portal simplifies reporting of credit card fraud.
  • 📉 Prompt reporting can limit liability for unauthorized transactions.

💡 Tips for Reporting Fraud

Review your situation with an attorney to understand how the law applies to your case.

🛡️ Report Unauthorized Credit Card Transactions Immediately

If you notice unauthorized charges on your credit card, contact your issuer right away. Reporting quickly helps you limit your liability to $50 if done within 60 days of the statement date.

📬 Use the Online Portal for Credit Card Fraud

For reporting credit card fraud, utilize the Consumer Financial Protection Bureau's online portal. This method allows for a swift and straightforward reporting process.

📮 File a Complaint for Mail Fraud

If you believe you have been a victim of mail fraud, file a complaint with the U.S. Postal Inspection Service. This can be done through their online complaint form, and it is free of charge.

📊 Consider Reporting Securities Fraud Anonymously

If you have information on potential securities fraud, you can submit a tip anonymously to the Securities and Exchange Commission. Tips can be made through their online form or hotline, ensuring that your identity is protected.

⏳ Report Promptly for Best Results

While there is no formal deadline for reporting mail fraud, doing so as soon as possible can aid in investigations. Timely reports can also help recover lost assets and prevent further fraud.

🏆 Services Ranked by User Reviews (2026)

This section highlights services relevant to fraud protection and reporting. The following services are ranked based on Trustpilot data from October 2026. Ratings can change, and while they provide insight into user satisfaction, they should be considered alongside other factors.

🥇 1. Assurant

Assurant has been rated 3.7 on Trustpilot. Known for its insurance services and consumer protection, Assurant provides support for individuals facing various types of fraud. However, some reviewers mention concerns regarding claims processing times, which can impact user experience.

🥈 2. Experian

Experian holds a score of 4.1 on Trustpilot. The company is known for its credit monitoring and identity theft protection services. While many users appreciate Experian's proactive approach to fraud prevention, some have pointed to issues with customer service responsiveness.

🆓 Free Government Assistance for Fraud Reporting

The government offers free resources for reporting different types of fraud. The Consumer Financial Protection Bureau provides guidance for credit card fraud, while the U.S. Postal Inspection Service assists victims of mail fraud.

Additionally, the SEC's Office of Investor Education and Advocacy offers support for investors facing securities fraud issues.

🔎 Factors to Compare When Choosing a Service

  • 📊 Trustpilot ratings and number of reviews for user satisfaction.
  • 🛡️ Types of fraud protection services offered.
  • ⏱️ Response times for reporting and investigating fraud.
  • 💬 Customer service quality and responsiveness.
  • 💰 Fees or costs associated with services.

❓ Frequently Asked Questions

❓ What should I do if I suspect I’m a victim of fraud?

If you suspect you are a victim of fraud, immediately report it to your credit card issuer or the relevant authorities. Timely reporting is essential to protect yourself.

🕒 How long does it take to process a fraud report?

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.

📜 What are the penalties for securities fraud?

Securities fraud can lead to severe consequences, including up to 25 years in prison and fines reaching $5 million for individuals. Organizations may face fines up to $25 million.

📞 Can I report fraud anonymously?

Yes, you can submit tips about securities fraud anonymously through the SEC’s online tip form or by calling their hotline. This option allows you to report without revealing your identity.

🔍 How can I protect myself from fraud?

To protect yourself from fraud, monitor your financial statements regularly and report any unauthorized transactions immediately. Utilize fraud protection services to enhance your security.

🏢 Where can I find help if I’ve been defrauded?

Various government agencies offer free assistance for fraud victims. The Consumer Financial Protection Bureau and the U.S. Postal Inspection Service provide resources and support for affected individuals.

⚖️ Recent Cases Related to Fraud

Several recent court rulings have highlighted the importance of fraud law and its implications on securities fraud and related activities. Understanding these cases can give insight into how the legal system handles these issues.

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

End of October 2026 Update






A "pump and dump" scheme can be considered a form of online securities fraud 



The US Securities Exchange Commission (SEC) recommends several ways for the public to steer clear of pump and dump schemes.



 

Quick Overview To The Pump and Dump Scheme


 



They recommend considering the advertisement source. In other words, if the investment firm advertises online, there is a more of a chance that it is a scam. However, there are some legitimate companies that do advertise online, so it's important to conduct extensive research before making an investment. When researching, it is also important to verify that their claims are accurate.



 



 



It is also important to see where the companies trade their stocks. If they trade with a larger stock exchange (i.e. NASDAQ, the New York Stock Exchange, etc.), it is more likely that their company is legitimate versus a smaller company who trades within the OTC market. The SEC also recommends being wary of "high-pressure" sales pitches. These usually come in the form of advertisements claiming to have a "once in a lifetime" chance or other outrageous claims.