A report released by ranking Democrats on the Joint Economic Committee of the U.S. Congress has concluded that the federal government’s efforts to combat the increasing tide of cyberscams are fragmented and insufficient, leaving victims with little recourse to recover their stolen funds.
The investigation, which drew on findings from a yearlong probe into global scam operations by The Associated Press and FRONTLINE, emphasized the need for enhanced inter-agency collaboration, dedicated victim support, and deeper engagement from the private sector.
"Transnational criminal organizations run massive compounds that exploit U.S. technology, including AI, to carry out scams against Americans with devastating consequences," said Sen. Maggie Hassan, in an email. "The scale of this exponentially growing challenge requires Congress, the Administration, and the private sector to all strengthen their efforts."
The report details the significant challenges victims face in recovering money lost to scams, despite announcements of seizures by various U.S. agencies. The FBI reported returning $336 million to scam victims in 2025, while the Federal Trade Commission returned $1.83 billion in fiscal year 2025, though it could not specify how much of that was linked to overseas scam operations.
The U.S. Secret Service returned over $770 million in seized assets to fraud victims across fiscal years 2024 and 2025, but noted these funds stemmed from a variety of fraud schemes. The State Department indicated that foreign law enforcement agencies it supports had seized proceeds in the "low hundreds of millions of dollars," directing further inquiries to the Departments of Justice, Homeland Security, and Treasury.
These reported recoveries represent a fraction of the nearly $18 billion Americans lost to cyberfraud last year, according to FBI data. The report also noted a concerning trend: as scam networks expand internationally, U.S. State Department budget cuts have led to the elimination of anti-scam programs, such as one in Bangladesh that trained local law enforcement in cyberfraud investigations. Bangladesh has been identified as an emerging hub for global scam operations.
The U.S. State Department stated it has 60 employees dedicated to fighting overseas scam compounds and believes it possesses the necessary tools for international efforts.
The report urges Congress to pass pending legislation that would establish a unified federal strategy to combat scams and create a central reporting and assistance location for victims. The White House has also called for improved federal coordination.
While Justice Department officials have suggested that private sector companies increase their focus on scam prevention, U.S. regulators and lawmakers have not implemented clear incentives. Unlike regions such as the European Union, the United Kingdom, Australia, and Singapore, the United States has not made technology, telecommunications, or financial services companies potentially liable for failing to adequately protect consumers from scams.
Kate Griffin, a director at the Aspen Institute’s financial security program, commented that while progress has been made, the U.S. still lacks "durable, sustainable scam prevention," which has not yet translated into reduced victimization.