Kaine, Colleagues Applaud Senate Passage of Bipartisan Bill to Counter Foreign Cyber Scams
WASHINGTON, D.C. – U.S. Senator Tim Kaine (D-VA) applauds the Senate passage of the Scam Compound Accountability and Mobilization (SCAM) Act, bipartisan legislation he cosponsored to counter foreign cyber scams and hold transnational criminal organizations accountable for human trafficking, forced criminality, and cyber-enabled fraud schemes targeting Americans.
“Transnational criminal organizations across the world are stealing billions from Americans by forcing human trafficking victims to commit cybercrimes,” said Kaine. “I’m proud the Senate passed a bipartisan bill I cosponsored to help ensure criminal organizations are held accountable and prevent scammers from preying on innocent Americans.”
Transnational criminal organizations (TCOs) across the globe—many of which are based in Southeast Asia and affiliated with the People’s Republic of China (PRC)—are increasingly conducting large-scale cyber scam operations against Americans. By deceptively luring victims under false pretenses to a secure facility, also known as a scam compound, TCOs are then forcing these trafficked captives to commit cybercrimes under duress and defrauding Americans out of billions of dollars annually.
In 2024, the FBI reported nearly $14 billion in losses in the United States due to cyber-enabled fraud. While the PRC has cracked down on scam compounds that target Chinese citizens, it is turning a blind eye to those that defraud Americans.
The SCAM Act would address this issue by:
- Requiring the U.S. Secretary of State, in consultation with the U.S. Attorney General, U.S. Secretary of the Treasury, and other relevant departments and agencies, to submit to Congress a comprehensive strategy to counter scam compounds by preventing recruitment fraud, enhancing the capabilities of partner governments and law enforcement agencies to stop scam compounds and associated money laundering, supporting survivors of human trafficking, and holding accountable countries that enable or permit scam compound operations;
- Establishing a task force to implement the strategy over a six-year period, evaluate its progress, and submit an annual report to Congress detailing its effectiveness;
- Allowing the President to use International Emergency Economic Powers Act (IEEPA) sanctions against foreign persons who support or enable international scam compound operations; and
- Requesting a report from the Department of Justice (DOJ) on recommendations for a potential mechanism to provide financial redress to U.S. citizens who are victims of scam operations.
The legislation is led by U.S. Senators John Cornyn (R-TX) and Jeanne Shaheen (D-NH). In addition to Kaine, the legislation is cosponsored by U.S. Senators Rick Scott (R-FL), Tammy Duckworth (D-IL), Pete Ricketts (R-NE), Maggie Hassan (D-NH), James Lankford (R-OK), and Jacky Rosen (D-NV).
The legislation has been endorsed by AARP.
Full text of the SCAM Act can be found here.
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