Congress Finds Federal Agencies Return Only a Fraction of $18 Billion in Cyberfraud Losses

A report released Tuesday by the Joint Economic Committee of the U.S. Congress states that federal agencies lack a unified system for tracking cyberfraud losses and victim recoveries. The investigation, led by ranking Democrats Sen. Maggie Hassan and Rep. Don Beyer, concluded that the government’s response to the rising tide of online scams is fragmented. The findings rely on data from a yearlong investigation by The Associated Press and FRONTLINE.

The report quantifies the gap between what Americans lose and what they get back. In 2025, the FBI returned $336 million to scam victims. The Federal Trade Commission reported returning $1.83 billion in fiscal year 2025, though it could not determine how much of that sum originated from overseas scam compounds. The U.S. Secret Service returned more than $770 million in seized assets during fiscal years 2024 and 2025, noting the funds came from various fraud schemes.

The U.S. State Department told the committee that foreign law enforcement agencies receiving its support seized proceeds in the low hundreds of millions of dollars. The department advised Congress to query the Departments of Justice, Homeland Security, and Treasury for specific details. These figures combine to represent a small portion of the nearly $18 billion in cyberfraud losses reported to the FBI last year. That total equates to more than $2 million per hour, and many victims never file a report.

The committee’s investigation began with findings from the AP and FRONTLINE regarding the global scam industry. The report calls for greater collaboration across government agencies, improved support for victims, and deeper engagement with the private sector. Hassan noted in an email that transnational criminal organizations operate massive compounds using U.S. technology, including artificial intelligence, to target Americans.

She described the scale of the challenge as exponentially growing, requiring strengthened efforts from Congress, the administration, and the private sector. The report highlights the difficulty victims face in recovering funds despite an increased pace of seizures announced by various agencies. It points to a lack of clear incentives for private sector companies to focus on scam prevention.

Several Justice Department officials told Congress that private companies should prioritize prevention, but regulators and lawmakers have not established clear liability for tech, telecom, or financial services firms. The United States has not held these companies potentially liable for failing to protect consumers, unlike the European Union, United Kingdom, Australia, and Singapore. This regulatory gap remains a key focus of the report’s recommendations.

The report also addresses the impact of U.S. State Department cutbacks on international efforts. It noted that reductions eliminated at least one anti-scam program in Bangladesh. That program had trained local law enforcement to conduct cyberfraud investigations. A United Nations Office on Drugs and Crime report funded by the European Union identified Bangladesh as an emerging hub for global scam operations last month.

The State Department stated it has 60 employees in the U.S. and Asia who dedicate significant time to fighting overseas scam compounds. It told the committee it has the tools needed to combat the threat internationally. The report urges Congress to pass pending legislation that would mandate a unified federal strategy and create a central location for victims to report losses and seek help.

Kate Griffin, a director at the Aspen Institute’s financial security program, said the U.S. has made progress but still lacks durable, sustainable scam prevention. She noted that reduced victimization has not yet appeared in the data. The White House has also advocated for greater federal coordination in response to the growing threat.

The report was obtained by the AP before its official release. It serves as a basis for the ongoing collaboration between the AP and FRONTLINE, which includes the documentary Scammed. The document provides a detailed look at the financial and operational challenges facing federal agencies as they attempt to counter the global scam industry.