A congressional investigation has found that the United States government’s response to the rising wave of cyber scams is fragmented and largely ineffective, with limited coordination among agencies and voluntary, inconsistent partnerships with the private sector. The findings were outlined in a report released Tuesday by the Joint Economic Committee, led by ranking Democrats Sen. Maggie Hassan of New Hampshire and Rep. Don Beyer of Virginia.
The report draws on a yearlong investigation into global cyber scams, highlighting challenges in recovering stolen funds and supporting victims. It notes the absence of a unified accounting system to track assets seized from foreign scam operations or to determine how much of those assets have been returned to victims. The FBI reported returning $336 million to fraud victims in 2023, while the Federal Trade Commission (FTC) said it returned $1.83 billion in fiscal year 2025. However, the FTC was unable to specify how much of those funds were recovered from overseas scam hubs. The U.S. Secret Service also returned over $770 million in seized assets during fiscal years 2024 and 2025 but indicated that the money originated from various types of fraud.
Foreign law enforcement supported by the State Department has seized scam proceeds estimated in the "low hundreds of millions," but the department deferred to the Departments of Justice, Homeland Security, and Treasury for detailed figures. Combined, these recoveries represent only a small portion of the estimated losses suffered by American victims.
Americans reported nearly $18 billion in cyberfraud losses to the FBI last year—equating to more than $2 million lost every hour—though many incidents go unreported. The investigation also raised concerns about diminished international cooperation, noting that the State Department eliminated at least one anti-scam program in Bangladesh, a country emerging as a major hub for global scam networks. This trend was underscored by a recent United Nations report funded by the European Union.
Despite these challenges, the State Department emphasized it maintains a team of 60 personnel across the U.S. and Asia who are dedicated to combating overseas scam operations. Still, the congressional report calls for improved interagency collaboration, enhanced victim support, and increased engagement with private-sector partners.
The report supports pending legislation that would establish a unified federal strategy for combating scams and create a centralized platform for victims to report losses and seek assistance. The White House has also expressed support for stronger federal coordination on this issue.
Justice Department officials highlighted the need for greater private-sector responsibility in scam prevention but acknowledged that regulators and lawmakers have not yet developed clear incentives or held companies accountable for consumer protection failures. Unlike the European Union, United Kingdom, Australia, and Singapore, which have implemented stricter regulatory measures, the United States has not enforced potential liability for technology, telecommunications, or financial services companies failing to prevent scams.
Industry observers acknowledge progress but emphasize the need for durable and sustainable prevention strategies. Kate Griffin, director of the Aspen Institute’s financial security program, noted that while some advances have been made, evidence of reduced victimization remains lacking.
“The scale of this exponentially growing challenge requires Congress, the Administration, and the private sector to all strengthen their efforts,” Sen. Hassan said, underscoring the urgent need for a more coordinated approach to combatting cyber scams targeting Americans worldwide.