Federal Agencies Return Less Than 10% of Reported Cyberfraud Losses to Victims

Washington lacks a single ledger to track how much money the federal government seizes from overseas scammers and how much of it reaches the original victims.

A report released Tuesday by the Joint Economic Committee of the U.S. Congress details the fragmented nature of the current anti-fraud effort. The document, produced by ranking Democrats Sen. Maggie Hassan and Rep. Don Beyer, concludes that partnerships between the government and private firms remain voluntary and scattered. The Associated Press obtained the full text before its official distribution.

The investigation draws on a yearlong inquiry into the global scam industry conducted by The Associated Press and FRONTLINE. It identifies a lack of coordination among federal bodies as a primary obstacle. Hassan stated in an email that transnational criminal organizations use U.S. technology, including artificial intelligence, to run massive compounds that exploit Americans.

The financial data presented to the committee illustrates the gap between reported losses and recovered funds. In 2025, the FBI returned $336 million to scam victims. The Federal Trade Commission reported returning $1.83 billion to fraud victims in fiscal year 2025, though it could not specify how much originated from overseas compounds. The Secret Service returned more than $770 million in seized assets during fiscal years 2024 and 2025 from various fraud schemes.

The State Department told the committee that foreign law enforcement agencies it supports had seized proceeds in the low hundreds of millions of dollars. For specific details, the department directed lawmakers to the Departments of Justice, Homeland Security, and Treasury. Combined, these agencies returned roughly $2.9 billion, a small portion of the total losses reported by the public.

Last year, Americans reported nearly $18 billion in cyberfraud losses to the FBI. That total equates to more than $2 million in losses per hour. The report notes that many victims never file a report, meaning the true financial impact is likely higher than official statistics suggest.

State Department officials told the committee that 60 employees in the U.S. and Asia spend substantial time on overseas scam compounds. They asserted that the department has the tools necessary to combat the threat internationally. However, the report notes that recent cutbacks ended at least one anti-scam program in Bangladesh. A United Nations Office on Drugs and Crime report from last month described Bangladesh as an emerging hub for scam operations.

The committee urges Congress to pass pending legislation that would mandate a unified federal strategy against scams. The bill would also create a central location for victims to report losses and seek assistance. The White House has indicated support for greater federal coordination in this area.

Justice Department officials told lawmakers that private companies should do more to prevent scams, but regulators have not set clear incentives for such actions. Unlike the European Union, the United Kingdom, Australia, and Singapore, the U.S. has not made technology, telecommunications, or financial services companies potentially liable for failing to adequately protect consumers.

Kate Griffin, a director at the Aspen Institute's financial security program, acknowledged progress but said the country still lacks durable, sustainable scam prevention. She noted that reduced victimization rates have not yet appeared in the data, which she said is the primary goal of these efforts.