Federal Trade Commission Partners with Latin American Countries to Combat Cross-Border Fraud

The Federal Trade Commission (FTC) has taken a significant step in the fight against cross-border fraud by signing a cooperation agreement with consumer protection authorities from four Latin American countries: Chile, Colombia, Mexico, and Peru. The Multilateral Memorandum of Understanding (MMOU) aims to strengthen international collaboration in combating fraudulent activities, whether originating within or outside the United States.

In a joint effort to protect consumers from deceptive practices, the MMOU facilitates cooperation among these Latin American nations by promoting information-sharing, facilitating investigations, and developing policies that target cross-border fraud. The agreement also provides a framework for expanding this cooperation across the region, offering opportunities for additional countries to join forces in the fight against fraud.

Maria Coppola, Director of the FTC's Office of International Affairs, highlighted the significance of this partnership, stating, "This multilateral MOU with our partners from Chile, Colombia, Mexico, and Peru sends a message of our shared commitment to protect consumers from cross-border fraud, deception, and other illegal practices. The MOU also offers a blueprint for extending cooperation even further through the region, which will bolster our efforts to fight fraud wherever it might occur."

The global reach of the internet has made it easier for scammers to target consumers regardless of their location. This growing trend has posed challenges for consumer protection authorities worldwide. Between 2019 and 2022, reports of fraud against companies in the four Latin American countries involved in this agreement more than doubled, rising from 6,103 to 12,869 cases. During the same period, consumer-reported losses also surged from $39.4 million in 2019 to $237.9 million in 2022. Online shopping complaints took the top spot, with losses increasing from $3.8 million in 2019 to $49.5 million in 2022. Social media was the most commonly cited contact method by consumers, accounting for 41 percent of reports in 2022.

These four Latin American nations collectively represent approximately 225 million people and constitute the world's eighth-largest economy.

Key elements of the MMOU include the sharing of consumer complaints, collaborative investigations, coordinated enforcement actions against cross-border violations, exchange of practical case assistance such as evidence gathering, participation in econsumer.gov (an international platform for reporting fraud), and cooperation on non-investigatory matters like policy discussions, staff exchanges, joint training programs, and workshops.

Importantly, the MMOU includes provisions to allow other consumer protection authorities to join this alliance in the future, further strengthening the global fight against cross-border fraud.

The FTC's unanimous 4-0 vote authorized the FTC Chair to sign the MMOU. This decision underscores the commitment of these authorities to join forces and protect consumers from fraudulent activities that transcend international borders.