Reports & Analysis
The Scam Epidemic and the Federal Crackdown to Combat It
The Challenge
Scams against Americans have accelerated sharply, driven by organized criminal networks based in Southeast Asia and supercharged by artificial intelligence and social media. The debate in Washington has often focused on regulating the payment platforms scammers exploit — but the evidence points to a different, more effective target: the criminal enterprises themselves.
What the Evidence Shows
The scale of the threat has grown dramatically, and going after the source — not the payment platforms — is what's actually working.
$21B
Cyber-enabled crime losses reported to the FBI in 2025 — the highest figure ever recorded, and roughly five times what was reported in 2020.
$15B
Cryptocurrency seized in the Justice Department's forfeiture action against the Prince Group's chairman — the largest forfeiture action in DOJ history.
8X
Increase in reported social media scam losses since 2020, reaching $2.1 billion in 2025 — now the costliest point of first contact, surpassing text and email scams combined.
The Real Question
Not whether scams are a growing threat — the data settles that — but whether the right response is regulating the domestic platforms scammers exploit, or dismantling the criminal networks running the schemes. Since 2025, the federal government has tested the latter approach: cartel-style terrorism designations, Treasury sanctions on scam-linked financial networks, and a dedicated interagency Strike Force.
Bottom Line
The source-focused approach — designations, sanctions, asset seizures, and coordinated task forces — has already produced the largest forfeiture in DOJ history and hundreds of millions in seized funds headed back to victims. The report argues this strategy should be made permanent and expanded, rather than shifting toward regulating payment platforms that aren't the source of the fraud.
Sources: FBI, 2025 Internet Crime Report (IC3), April 2026; Federal Trade Commission, "New FTC Data Show People Have Lost Billions to Social Media Scams," April 2026; U.S. Department of Justice, "Chairman of Prince Group Indicted...," October 2025; U.S. Department of the Treasury/OFAC, September 2025.