Americans Lost Record $20.9 Billion to Internet Scams in 2025

Americans lost a record $20.9 billion to internet-enabled crime in 2025, marking a 26% increase from the previous year, according to FBI data. This figure represents the highest amount ever recorded by the FBI for this type of crime. Individuals over the age of 60 reported losses totaling $7.7 billion, averaging $38,500 per victim.

The Federal Trade Commission notes that the actual financial toll is likely higher, as many victims do not report these incidents. A significant portion of these losses stems not from traditional hacking, but from scams where victims are persuaded to voluntarily send money to perpetrators, often located overseas.

Treasury Department estimates indicate that Americans lost at least $10 billion in 2024 to scam operations originating in Southeast Asia, primarily in Burma, Cambodia, and Laos. These operations are described as sophisticated and sometimes involve trafficked workers subjected to debt bondage or violence.

Social media platforms have become a major conduit for these scams, with the FTC reporting that scams originating on social platforms cost Americans $2.1 billion last year. This represents an eightfold increase compared to 2020 and surpasses losses from any other contact method. The use of artificial intelligence (AI) by criminals is also noted, enabling them to bypass language barriers and impersonate individuals without needing authentic photographs or proficient English.

In response to the growing problem, the outgoing Biden administration's Consumer Financial Protection Bureau filed a lawsuit in December 2024 against the operator of the Zelle payment network and three major participating banks over scam losses. However, this suit was dismissed three months later.

Financial institutions are already actively engaged in combating fraud and scams. They implement real-time risk scoring for outbound payments, provide mid-transaction warnings to customers when funds are directed to new recipients, and block transfers that trigger their fraud detection models. Banks incurred approximately $21 billion in fraud prevention expenses in 2025, according to Juniper Research. These coordinated efforts with law enforcement have shown success; the FBI’s Financial Fraud Kill Chain program froze $679 million of $1.16 billion in attempted theft last year.

However, the article suggests that a defense solely reliant on financial institutions is insufficient, as scams often begin long before the money transfer stage. Sophisticated scammers establish rapport and manipulate victims over extended periods through social media, calls, texts, and emails, sometimes impersonating trusted individuals.

Mandating reimbursement for scam losses could increase the cost of banking and payment services for consumers, while foreign criminals retain their illicit gains. The article highlights a source-focused approach that has yielded progress, such as a joint U.S. and U.K. sanctioning of 146 individuals and entities linked to Cambodia's Prince Group in October. This action included the indictment of its chairman by the Department of Justice and a move to seize over 127,000 Bitcoin, a record forfeiture in Justice Department history.

The Scam Center Strike Force has recovered over $401 million for victims, and the FBI's Operation Level Up has issued warnings to more than 8,000 Americans during ongoing scams. The article advocates for making current executive orders permanent through legislation and expanding private-sector partnerships. It calls for enhanced intelligence sharing between telecommunications, social media, technology, and banking firms, alongside government agencies like Treasury and the FBI, to create a comprehensive network map.

Furthermore, the proposal includes designating scam syndicates as terrorist organizations where applicable, thereby enabling material-support charges against financiers and secondary sanctions for foreign banks involved. The State Department is also urged to impose diplomatic costs on countries that host scam compounds.

On the domestic front, telecom, tech, and social media companies are encouraged to collaborate more closely with Treasury, the FTC, and the FCC to prevent criminals from targeting consumers. A basic step suggested is for these companies to remove fraudulent advertisements rather than profit from them.

Congress is urged to increase penalties for cross-border scams, streamline extradition processes, and provide statutory backing to existing executive orders to ensure that crackdowns on scammers persist beyond a single administration. The most effective strategy, the article concludes, involves stopping criminals before they can contact potential victims and attacking the financial flows of illicit operations. This approach aims to punish the perpetrators abroad, thereby disincentivizing future scams and protecting consumers from financial loss.