Most US Scam Victims Get No Help; Some Lose Even More Money
Associated Press and FRONTLINE | “What happens after the scam might even be worse than the scam itself,” said Erin West, a former prosecutor and founder of Operation Shamrock. “It’s a travesty.”
A widower was targeted in a romance scam. Over a few months, the scammer stole $800,000. Not only did he have to pay back money he had borrowed from friends and family, but he also had to pay tens of thousands of dollars in taxes on the money he had withdrawn and lost.
A retired nurse drained her retirement accounts to send more than $200,000 to someone impersonating a federal agent. At tax time, she owed the IRS $80,000. She had to sell her home, and she's still paying off her tax bill.
The IRS taxes funds withdrawn from tax-deferred accounts, like retirement accounts, even if the money ends up going to scammers. Banks sometimes blame victims, freeze or close accounts, charge legal fees, and demand repayment on loans.
AP/FRONTLINE interviewed 58 U.S. victims of cyber scams. The demographics span ages 32 to 90, all races, education, and income levels. The amount taken from each ranged from several thousand to up to $4 million.
Only one of the people they interviewed got any money back. Not from the scammers. Not from law enforcement. She sued her bank for “failing to protect an elderly citizen and flag the extraordinarily large and unusual transfers.” The bank settled for an undisclosed amount.
What’s the Government Response?
In a Gallup survey, 80% of people say the U.S. government isn’t doing enough to protect against scams. More than half of respondents in an AP-NORC poll believe financial institutions, social media, tech companies, and the government should share responsibility.
“There is no government-wide estimate of the money lost to scams, no common definition of scams, and no national strategy for combating them,” said Seto Bagdoyan from the Government Accountability Office. Meanwhile, at least 13 agencies focus on different aspects of scams.
The FBI’s Operation Level Up works to identify people who may be targeted in scams and then calls them to try to intervene. The program reports it stopped about 8,500 people from being scammed in almost two years. Meanwhile, FBI IC3.govreceives about 3,000 internet crime complaints a day.
Congress is considering multiple scam-prevention bills. But the United States doesn’t currently require companies to increase consumer protection. A March 2026 executive order called for prioritizing the prosecution of scammers. But the funding hasn’t followed.
Other countries and regions have implemented incentives to encourage the private sector to do more to prevent fraud.
Singapore: Banks and telecom companies that don’t implement safeguards required by the Shared Responsibility Framework may have to repay victims of certain scams. Passed last year, the Protection From Scams Act allows police to temporarily restrict bank transfers of suspected victims. The national anti-scam center brings together police with employees from banks and e-commerce platforms in the same offices.
United Kingdom: Since 2024, companies typically must reimburse clients who have been scammed into sending money. Some social workers receive training to support the emotional needs of scam victims.
European Union: The Digital Services Act requires platforms to take steps to reduce fraud quickly respond to reports of scam content. The EU is working to hold financial firms lacking sufficient fraud protection liable for scammed funds.
Australia: Under new regulations, financial institutions, telecommunications companies, and digital platforms that don’t do enough to prevent or respond to scams can be fined or required to compensate victims.
Full article: Scams in the US are at a record high. Yet most victims get no help and some end up losing even more
