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5d ago

Investigation Finds U.S. Scam Surge Leaves Victims With Little Recourse

AP and FRONTLINE document massive losses traced to crypto flows to Myanmar compounds, with tax, banking and restitution gaps leaving most victims without remedies.

A portrait of Simon, who was targeted by a scammer that stole $800,000 from his retirement savings and asked not to be identified by his full name because he's too ashamed to tell most of his family about the crime, and a screenshot of a text message exchange with his scammer, are seen in this single long exposure photograph, Wednesday, June 17, 2026, at his home in southeastern New York. (AP Photo/David Goldman)
Alice Lin, center, who fought back to recover some of the $720,000 she and her late husband had saved over their lifetime which was stolen by an online scammer, rests for a moment while working in her rose garden, Saturday, May 9, 2026, in Alhambra, Calif. (AP Photo/David Goldman)
A copy of a wire transfer is seen as Alice Lin, who fought back to recover some of the $720,000 she and her late husband had saved over their lifetime which was stolen by an online scammer, sits on her couch at home, Sunday, May 10, 2026, in Alhambra, Calif. (AP Photo/David Goldman)
Simon, who was targeted by a scammer that stole $800,000 from his retirement savings and asked not to be identified by his full name because he's too ashamed to tell most of his family about the crime, looks out a window from his home, Wednesday, June 17, 2026, at his home in southeastern New York. (AP Photo/David Goldman)

Overview

  • The investigation shows reported U.S. losses hit a record $15.9 billion in 2025 while the FTC estimates real losses in 2024 may have been near $200 billion, indicating a far larger, mostly hidden problem.
  • Reporters traced funds taken in a romance scam from a New York widower through cryptocurrency wallet addresses and leaked records to a notorious scam compound in Myanmar, showing how cross-border networks move stolen money.
  • Victims face added financial harm because a tax provision made permanent in 2025 generally bars deductions for personal theft losses, leaving some to owe taxes on money they no longer have.
  • Under U.S. law banks are rarely required to repay customers who authorize transfers after being deceived, and the GENIUS Act did not obligate crypto firms to return stolen assets, which limits recovery options.
  • Federal responses include DOJ strike forces, FBI interventions and Treasury sanctions but agencies remain fragmented and proposed congressional bills are piecemeal, so most victims still see little chance of getting money back.