Washington: US lawmakers have raised alarms over a sprawling scam network linked to China that is reportedly stealing billions of dollars from hardworking American families. In a recent congressional hearing, bipartisan calls were made for stronger legislation to crack down on fraud involving cryptocurrencies, human trafficking, and overseas scam operations.
Targeting Senior Citizens and Threatening Families
Senate Aging Committee Chairman Rick Scott highlighted how scams targeting senior citizens are wiping out decades of savings and destroying homes across the United States. He accused Beijing of allowing a criminal infrastructure to flourish, calling Communist China the global hub of scam operations that destabilise American families.
Scott stated, “According to the FBI, seniors lost over $4.8 billion to fraud in 2024 alone. Many victims are retired individuals whose lives have been devastated by these criminal networks.” He added that the scams are highly organised and often directed or operated under the guidance of the Chinese Communist Party.
Scam Operations Across Southeast Asia
The scam networks reportedly rely on Chinese platforms and payment channels, running scam compounds in Myanmar, Cambodia, Laos, and other parts of Southeast Asia. Workers trafficked into these centres are forced to carry out scams targeting Americans. Ranking Member Kirsten Gillibrand noted that new technologies and the use of cryptocurrencies have only amplified the scale of these frauds.
Gillibrand emphasised the emotional and financial toll on victims, warning that retirement plans could be derailed and families torn apart. She also pointed out the reluctance of many victims to report scams due to shame, language barriers, or fear, especially among Chinese Americans and other Asian immigrant communities who may be targeted because of cultural and familial ties.
Calls for Stronger Laws and Government Action
US lawmakers are pushing for the passage of the GARD Act, which aims to increase penalties for criminals targeting elderly Americans and enhance the tools available to law enforcement. Witnesses informed senators that China-linked networks play a significant role in global scam operations, describing these frauds as a major strategic challenge.
Nathan Pickarski from the Foundation for Defense of Democracies said these scams threaten social cohesion and receive backing from the Chinese government, benefiting from advanced technologies and the global banking system, making recovery of stolen funds difficult.
Fraud expert Kathy Stokes described the situation as a national crisis. She revealed that initial estimates by the Federal Trade Commission of $12.8 billion stolen in 2024 were later revised to $196 billion, with seniors losing about $81 billion. Stokes highlighted the additional burden on victims who face large tax bills on stolen money, urging the federal government to provide tax relief to scam victims.
Government Accountability Office official Seto Bagdoyan criticised the lack of coordinated response and absence of a common definition of scams, which hampers enforcement and accountability. The scams exploiting seniors have spread through digital payments, social media, and online investment platforms, using urgency, fake identities, and emotional manipulation to pressure victims into quick decisions.
The growing threat posed by these scams underscores the urgent need for comprehensive government strategies and stronger protections for vulnerable American families.
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