US Federal Trade Commission: Its Role and Powers

The agency is also a major source of information about fraud, including job scams. It collects reports from the public, publishes findings and provides practical advice on recognizing suspicious offers and responding when money or personal information is at risk.

What the FTC does

Congress created the FTC in 1914 through the Federal Trade Commission Act. The law prohibits unfair methods of competition and unfair or deceptive acts or practices in commerce. Other federal laws give the agency additional responsibilities in areas such as credit reporting, telemarketing and children's online privacy.

The FTC investigates businesses, brings enforcement actions and issues certain rules within its legal authority. It also conducts research and publishes educational material for consumers and businesses.

Its authority is broad, but not unlimited. Some industries and activities fall outside its jurisdiction or are primarily overseen by other regulators. The FTC shares federal antitrust enforcement responsibilities with the Justice Department, while state authorities also enforce consumer protection and competition laws.

How the agency is organized

The FTC is headed by a commission of five members nominated by the president and confirmed by the Senate. Commissioners serve staggered seven-year terms, and no more than three may belong to the same political party. The president selects one commissioner to serve as chair.

Much of the agency's work is carried out through its Bureau of Consumer Protection, Bureau of Competition and Bureau of Economics. These teams combine legal investigation, enforcement and economic analysis.

Consumer protection cases can involve misleading advertising, fraudulent offers or unlawful handling of personal information. Competition cases can involve proposed mergers or business practices that may unlawfully reduce competition.

Why its job scam statistics matter

The FTC collects consumer reports through its Consumer Sentinel Network, which also receives information from contributing organizations. The resulting data help authorities identify patterns and give the public a clearer picture of reported fraud.

Job and employment scams can involve fake recruiters, misleading work-from-home offers or demands for payment before a supposed job begins. Some scammers seek personal information. Others send fraudulent checks and instruct the recipient to forward money or buy equipment.

FTC fraud statistics describe reports received, not every scam that occurs. Many people never report their experiences, and reporting habits can change. Reported losses should therefore not be treated as a complete measure of fraud across the country.

When citing FTC figures, it is important to identify the reporting period, the scam category and whether the figure measures reports, reported losses or another indicator.

Reporting fraud and understanding enforcement

The FTC operates ReportFraud, an online reporting service for scams, fraud and bad business practices. Reports can help investigators connect related complaints and identify targets for enforcement. They do not guarantee an individual investigation or a refund.

The agency generally does not resolve individual consumer disputes. However, some enforcement actions result in money being returned to affected consumers. Available remedies depend on the law involved and the circumstances of the case.

For suspected job scams, FTC guidance emphasizes independently checking the employer and recruiter, avoiding payments for the promise of a job and treating requests to send back money from a deposited check as a warning sign. Anyone who has sent money should promptly contact the payment provider. People whose personal information has been misused can also consult the FTC's IdentityTheft recovery service.