Federal Agencies Return $2.9 Billion in Scam Funds While Americans Lose $18 Billion

U.S. government agencies have returned approximately $2.9 billion in seized assets to fraud victims, a figure that represents a small fraction of the nearly $18 billion in cyberfraud losses reported to the FBI last year. The gap between reported losses and returned funds underscores the financial strain on consumers as scammers exploit digital infrastructure to extract money from American households.

A new investigation by the Joint Economic Committee of the U.S. Congress, released Tuesday, details the fragmented nature of the federal response to the global scam industry. The report, led by ranking Democrats Sen. Maggie Hassan and Rep. Don Beyer, finds that the government lacks a unified accounting of funds seized from overseas compounds. It also notes that partnerships with the private sector remain voluntary and unevenly applied.

Individual agency data reveals the complexity of tracking recovered money. The FBI stated it returned $336 million to victims in 2025. The Federal Trade Commission reported returning $1.83 billion in fiscal year 2025 but could not determine how much of that sum originated from overseas scam hubs. The U.S. Secret Service returned more than $770 million in fiscal years 2024 and 2025, noting these assets came from various fraud schemes rather than a single source.

The U.S. State Department indicated that foreign law enforcement agencies receiving its support had seized proceeds in the low hundreds of millions of dollars. The department advised the committee to seek specific details from the Departments of Justice, Homeland Security, and Treasury. These figures collectively account for only a portion of the estimated $18 billion in annual losses, a rate exceeding $2 million per hour.

Sen. Hassan said in an email that transnational criminal organizations operate massive compounds that exploit U.S. technology, including artificial intelligence. She stated that the scale of the challenge requires Congress, the administration, and the private sector to strengthen their collective efforts. The report called for greater collaboration across agencies and deeper engagement with private firms.

The investigation highlighted a reduction in international support capacity. State Department cutbacks eliminated at least one anti-scam program in Bangladesh, a country identified by the United Nations Office on Drugs and Crime as an emerging hub for global scam operations. The State Department maintains it has 60 employees in the U.S. and Asia dedicated to fighting overseas compounds and told the committee it has the tools needed to combat the threat internationally.

The report urged Congress to pass pending legislation mandating a unified federal strategy and a central reporting location for victims. While the White House has advocated for greater coordination, regulators have not established clear incentives for private companies to prevent scams. Unlike the European Union, the United Kingdom, Australia, and Singapore, the U.S. has not held technology, telecommunications, or financial services companies liable for failing to protect consumers adequately.

Kate Griffin, a director at the Aspen Institute’s financial security program, noted that while progress exists, the U.S. still lacks durable scam prevention measures. She said that reduced victimization has not yet materialized and that this outcome is what needs to happen.

Many Americans do not report cybercrimes, leaving the true scope of the industry partially hidden. The congressional findings provide a baseline for future legislative efforts aimed at streamlining victim support and clarifying the responsibilities of private sector partners.