Trump’s strike force is crushing the $20 billion scam cartels — make it permanent

U.S. Agencies Target Online Scam Networks Linked to Transnational Criminal Organizations

For years federal agencies have addressed online scams primarily through consumer protection measures focused on victim reports, disputed transactions, and post-incident remedies. Recent enforcement actions have shifted emphasis toward the upstream sources of these operations, including networks operating from foreign locations, financial channels used to move proceeds, and digital platforms that facilitate contact with potential victims. The FBI’s 2025 Internet Crime Report recorded losses reported to the Internet Crime Complaint Center exceeding $20 billion. The Federal Trade Commission reported that in 2025 nearly 30 percent of individuals who lost money to scams indicated the contact began on social media, with losses totaling $2.1 billion, an increase from 2020 levels.

Scams differ from other forms of fraud in their method. Fraud cases often involve direct unauthorized access to accounts or payment instruments. Scam operations instead rely on convincing individuals to authorize transfers themselves through manufactured scenarios involving urgency, trust, or apparent opportunity. Victims may believe they are assisting a family member, securing funds, settling an obligation, or making an investment. These interactions frequently originate on social media platforms, messaging applications, dating sites, or fraudulent websites weeks before any funds are transferred.

Reports describe large-scale operations based in compounds in Southeast Asia and other regions. Some accounts indicate these sites have employed individuals under conditions of debt bondage or coercion to conduct repeated contacts with targets. One federal indictment referenced operations that processed approximately $30 million per day at peak activity. A substantial share of reported victims have been older adults.

In 2025 the Treasury Department designated the Huione Group in Cambodia as a primary money-laundering concern, citing more than $4 billion in transactions linked to illicit activity. The Justice Department obtained an indictment against the chairman of the Prince Group and initiated forfeiture proceedings involving approximately $15 billion in Bitcoin. An interagency effort has conducted cryptocurrency seizures connected to these networks, with some recovered assets designated for potential return to victims.

These actions relied on existing sanctions authorities, financial tracking tools, and criminal statutes rather than new legislation. Officials have coordinated with foreign governments on intelligence sharing and enforcement where cooperation has been available. Jurisdictions that have permitted such networks to operate have faced diplomatic and financial measures.

Data from the FBI and FTC indicate that reported losses have continued to rise even as some accounts have been disrupted. Future tactics cited by investigators include the use of artificial intelligence to generate voice or video content for initial contacts and investment solicitations distributed through common social media feeds. Financial institutions have been asked to improve real-time information sharing on suspicious patterns.

The Department of Justice and Treasury have applied sanctions, forfeiture proceedings, and indictments to specific entities and individuals identified in these cases. Additional measures under discussion include expanded visa restrictions and continued law enforcement coordination with willing foreign partners. No permanent organizational structure has been established by statute for the interagency group handling these matters.

Stephen Moore is a Washington, D.C.-based economist.