US scam losses hit record $15.9 billion, but victims find little help

Scams have reached record levels in the United States, with Americans reporting $15.9 billion in losses to the Federal Trade Commission last year — a 25% jump from 2024. The actual figure is likely far higher, with the FTC estimating real losses at close to $200 billion for 2024, or roughly $550 million daily.

An investigation involving interviews with 58 victims found that despite government efforts, those defrauded have little recourse. The victims, aged 32 to 90, lost anywhere from a few thousand dollars to $4 million each. Their backgrounds ranged from IT professionals to academics to those struggling to make ends meet. Several said they contemplated suicide, and two attempted it. Only one victim recovered money, from her bank.

A poll indicates that 98% of Americans suspect they have been targeted by scam messages, with three in ten saying they have personally lost money or information.

Financial double punishment

Many victims face additional tax burdens. The IRS often requires retirees to pay taxes on funds withdrawn from tax-deferred accounts, even if those funds were stolen. A provision in the Tax Cuts and Jobs Act, made permanent in 2025, eliminated tax deductions for personal losses from many common scams, meaning victims can owe taxes on money they never got to keep.

Banks frequently penalize victims as well, sometimes freezing or cancelling accounts and demanding repayment of loans and legal fees. Under current US law, financial institutions are rarely liable for transactions customers authorize, even under fraudulent pretenses.

Global gap in protections

The US lags other nations in consumer safeguards. The UK has required financial firms to reimburse scam victims since late 2024. The EU is implementing rules making institutions liable for scammed funds if fraud protections are inadequate. Australia can fine or force compensation from banks, telecoms, and platforms that fail to act. Singapore requires banks and telecoms to repay phishing scam victims if safeguards are not in place, and police can restrict transfers for suspected victims.

Cryptocurrency has fueled the surge, as digital cash is hard to trace. While China bans crypto businesses and the EU requires licensing and disclosures, the US has avoided aggressive enforcement. The GENIUS Act, signed last year, does not require companies to return stolen funds. Crypto assets lack federal insurance, and many exchanges operate offshore beyond US law.

Government response

Congress is weighing over a dozen anti-scam bills, including a centralized complaint website and deepfake disclosure requirements. The Justice Department launched a strike force against Southeast Asian scam centers in November, and the Treasury has imposed sanctions. A March executive order directs the attorney general to prioritize scam prosecutions and propose a victim restitution program.

Current help efforts remain piecemeal. At least 13 federal agencies handle aspects of these crimes. The FBI's Operation Level Up has stopped about 8,500 people from falling for scams over two years — a small fraction given the bureau receives nearly 3,000 internet crime complaints daily.