Washington, Jan 25 (IANS) China-linked scam networks are stealing billions of dollars from hard-working Americans and posing a growing threat to families across the United States, influential senators said, as lawmakers pushed bipartisan legislation to crack down on fraud tied to cryptocurrency, human trafficking, and overseas scam compounds.
Calling the issue a national security concern, Senate Aging Committee Chairman Rick Scott told a Senate hearing this week that scams targeting seniors are draining savings built over decades and devastating households across the country.
Scott alleged Beijing has allowed the criminal infrastructure to grow. “Communist China is the epicenter of the global scam industry that drains American savings and destabilizes families,” he said.
“In 2024, older Americans lost more than $4.8 billion to fraud according to the FBI,” Scott said, calling the scale of losses “staggering.” He said many victims are retirees whose lives were “upended by monsters operating criminal networks overseas.”
Scott said the committee’s report Age of Fraud shows the crimes are not isolated. “These are highly organized, transnational enterprises,” he said, adding that many are “directed or enabled by the Chinese Communist Party.”
He said the networks rely on Chinese platforms and payment channels and operate scam compounds in Myanmar, Cambodia, Laos, and other parts of Southeast Asia. Scott said many of the compounds are staffed by trafficked workers forced to carry out scams targeting Americans.
Ranking Member Kirsten Gillibrand said scams have grown more sophisticated due to scam centers, new technology, and the use of cryptocurrency. She cited a case involving a senior in Jefferson County, New York, who was persuaded through a romance scam to withdraw most of his retirement savings and transfer the money into cryptocurrency.
“That is a loss that stings,” Gillibrand said. “It can derail retirement plans, pull apart families, and subject seniors to emotional and material harm.”
Gillibrand said victims often struggle to report scams because of stigma and shame. She said some communities face additional barriers related to language or fear. Asian immigrants, including Chinese Americans, can be preferred targets because of shared language, culture, and family ties to China, she added.
Both senators promoted legislation to compel for a coordinated federal response. Scott said he and Gillibrand, along with Senators Ashley Moody and Mark Kelly, introduced the National Strategy for Combating Scams Act, which would require a whole-of-government approach to fighting fraud.
Scott also highlighted the Scam Compound Accountability and Mobilisation, or SCAM Act, which he said was passed by the Senate last month. The measure would give the Treasury Department authority to sanction scam compounds and the criminal networks behind them.
The senators are also pushing the GUARD Act, which would strengthen penalties against criminals who target older Americans and expand tools available to law enforcement. Scott said the three bills are bipartisan and “common sense.”
Witnesses told senators that China-linked networks play a central role in global scam operations. Nathan Picarsic of the Foundation for Defense of Democracies said scams targeting seniors are part of a broader strategic challenge.
“Social cohesion is a pivotal battleground,” Picarsic said. He said Chinese criminal networks are “permitted and at times abetted by the Chinese state” and benefit from advanced technology and a globalized banking system that make it difficult to recover stolen funds.
AARP fraud expert Kathy Stokes described fraud as a national crisis. She said the Federal Trade Commission initially reported $12.8 billion stolen in 2024 but later revised the estimate to $196 billion, including $81 billion from seniors.
She described victims who lose their savings and then face large tax bills on money that was stolen. “They’re being revictimized by the federal government,” Stokes said, urging tax relief for scam victims.
Jacqueline Burns Koven of Chainalysis said cryptocurrency scams are expanding rapidly. She said 2025 was a record year, with an estimated $17 billion stolen in cryptocurrency. She said Chinese scam groups are global leaders because they use crypto and artificial intelligence to scale operations.
A Government Accountability Office official said the federal response lacks coordination. Seto Bagdoyan said there is no government-wide strategy and no common definition of scams, limiting enforcement and accountability.
Scams targeting older adults have expanded alongside digital payments, social media, and online investment platforms, with criminals using urgency, impersonation, and emotional manipulation to pressure victims into quick decisions.
–IANS
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