Paid by Seniors: Stopping the Surge of International Scams
US Senate | On January 14, 2027, the U.S. Senate Special Committee on Aging held a hearing about scams, titled “Made in China, Paid by Seniors: Stopping the Surge of International Scams.”
Members and expert witnesses highlighted how Chinese nationals and networks are driving large-scale online fraud operations that target Americans and others around the world. The goal of the hearing was to:
Expose how China enables and profits from the global scam economy
Highlight the connection between Chinese digital infrastructure, cybercrime, and human trafficking
Demonstrate the real-world impact these crimes have on American families, particularly the aging community
“Fraud is a national crisis, but bigger than most of us recognize,” said AARP’s Kathy Stokes in her opening remarks. “The Federal Trade Commission reported $12.8 billion stolen in 2024. But the true cost is far higher. They went back to that $12.8 billion and revised it in December to $196 billion leaving our economy in a single year to fraud — $81 billion of that from our nation’s seniors.”
AARP’s Stokes also shared a story about an AARP member who was targeted in a romance scam. The scammers stole $675,000 from her savings, 401(k) accounts, and loans. Not only was her money stolen, but she also learned she would have to pay $225,000 in taxes on it. She had to file for bankruptcy; the Internal Revenue Service was first to be paid.
AARP advocates reinstating the Personal Casualty and Theft Loss Deduction so that taxpayers aren’t taxed on money stolen from them.
Topics also included the complexity involved for consumers to report scams multiple federal agencies, local agencies, and financial systems. The discussion covered national security risks, technology solutions, prevention and support resources, economic damage, recovery of stolen funds, and federal response to the risks.
Witnesses for the hearing:
Nathan Picarsic, Senior Fellow, Foundation for Defense of Democracies
Kathy Stokes, Senior Director of Fraud Prevention, Fraud Watch Network, AARP
Jacqueline Burns Koven, Head of Cyber Threat Intelligence, Chainalysis
Seto Bagdoyan, Director for Audit Services, Government Accountability Office
Watch the Video: Made in China, Paid by Seniors: Stopping the Surge of International Scams
Note: The actual session starts at the 11:20 mark in the video. Use the scroll bar at the bottom of the video window to advance past the introduction screen.
