Source: Fortune.com
Summary
A new investigation by The Associated Press and FRONTLINE reveals that scams in the U.S. have reached record highs, with Americans reporting $15.9 billion in losses in 2025. Victims often face stigma, additional financial burdens, and little support from law enforcement. Scammers use AI and cryptocurrency to operate at scale, making it difficult to trace and recover stolen funds. Despite efforts by the government and some international models, U.S. victims still struggle to get restitution, with many losing even more money after the initial scam.
Our Reading
The numbers tell one story.
Scams are up, losses are up, and victims are left with more debt.
Law enforcement and banks offer little help, leaving people to deal with taxes and fees.
Scammers move quickly, and victims are left behind.
It’s a system that rewards the scammers and punishes the victims.
Author: Evan Null
Scams Reach Record Highs in the U.S.
Scams in the United States have reached record highs, with Americans reporting $15.9 billion in losses in 2025, according to new data. This represents a 25% increase from the previous year. The Federal Trade Commission (FTC) estimates that the real losses could be as high as $200 billion, with many victims too embarrassed to report their crimes. Scammers are using advanced technologies like artificial intelligence and cryptocurrency to operate at an unprecedented scale, making it harder to trace and recover stolen funds.
Victims Face Additional Financial Burdens
Many scam victims face additional financial burdens, including unexpected tax bills and bank fees. The Tax Cuts and Jobs Act, passed under the Trump administration, removed the ability for many victims to deduct their losses from their taxable income. This means victims can owe taxes on money that was stolen from them. Retired nurse Susan Bivins, for example, lost over $200,000 to a scam and was later hit with an $80,000 tax bill. She had to sell her home to cover the costs.
Law Enforcement and Banks Offer Limited Support
Victims often receive little support from law enforcement and banks. Many report feeling abandoned after the initial scam, with local police and the FBI offering little help. Banks sometimes blame victims for the fraud, even if they were tricked into authorizing transactions. Debra Fox, who lost $58,000 in a romance scam, was told by her bank that she would be held responsible for any fraudulent activity linked to her accounts. This added to her sense of helplessness and financial strain.
Global Models Offer Potential Solutions
Some countries have implemented more effective measures to combat scams. In the United Kingdom, financial institutions are generally required to reimburse clients who have been tricked into sending money to scammers. The European Union is also rolling out rules that make financial institutions potentially liable for scammed funds if they don’t put in adequate fraud protections. These models show that a more proactive approach can help reduce the impact of scams on victims.
Efforts in the U.S. Fall Short
Despite some efforts, the U.S. government and law enforcement agencies are still struggling to keep up with the scale of the scam problem. Congress is considering several bills to address the issue, including a centralized website for reporting scams. However, funding and coordination between federal agencies remain a challenge. The Government Accountability Office has criticized the lack of a national strategy for combating scams, noting that there is no government-wide estimate of the money lost to scams and no common definition of what constitutes a scam.
