Imagine losing your life savings to an online scam run by criminals halfway across the world. The Dismantle Foreign Scam Syndicates Act, or H.R. 5490, aims to tackle this growing threat by targeting the international networks responsible for these scams, protecting Americans from financial loss and exploitation.
What This Bill Does
H.R. 5490 is designed to fight against large-scale online scams, particularly those operated by criminal groups in Southeast Asia. These scams often trick people into sending money, sometimes through fake online relationships or investment opportunities. The bill sets up a special Task Force to coordinate efforts across different government agencies, making it easier to catch and stop these scammers.
The Task Force will work with other countries, private companies, and non-profit organizations to share information and shut down scam operations. This means that the U.S. will not be working alone but will have partners around the world to help tackle the problem. The bill also requires the Task Force to create a national strategy to fight these scams and report back to Congress every year on their progress.
Additionally, the bill provides support for victims of these scams, especially those who have been forced to work in scam centers against their will. Programs will be set up to offer them care and shelter, helping them recover from their experiences. To fund these efforts, the bill authorizes $30 million each year for two years.
Why It Matters
Online scams are not just a nuisance; they can have devastating effects on people's lives. Many Americans, especially older adults, have lost their life savings to these scams. By targeting the criminal networks behind them, this bill aims to reduce the number of victims and the amount of money lost.
The bill also addresses human trafficking, as many scam operations force people to work under terrible conditions. By dismantling these operations, the bill helps free those trapped in such situations, offering them a chance at a better life. For everyday Americans, this means fewer scam attempts and better protection against fraud.
Key Facts
- Cost/Budget Impact: $30 million per year for fiscal years 2026 and 2027.
- Timeline for Implementation: Task Force creation within 30 days of enactment; strategy submission within 180 days.
- Number of People Affected: Potentially millions of Americans targeted by scams, and thousands trapped in scam centers.
- Key Dates: Introduced in the House on September 18, 2025.
- Current Status: Referred to the Committees on Foreign Affairs and Judiciary.
- Real-World Example: Americans lost over $2 billion to "pig butchering" scams in 2022.
- International Cooperation: The bill mandates collaboration with foreign governments and organizations.
Arguments in Support
- Protects Americans from Financial Loss: By targeting scam networks, the bill aims to reduce the billions lost to scams each year.
- Disrupts Human Trafficking: It helps free people forced to work in scam centers, providing them with care and support.
- Improves Government Coordination: The Task Force unifies efforts across agencies, making anti-scam operations more effective.
- Enhances International Cooperation: By working with other countries and organizations, the bill tackles scams at their source.
- Promotes Accountability: Requires regular reports to Congress, ensuring transparency and progress tracking.
Arguments in Opposition
- Diplomatic Strain: Sanctions on foreign governments might complicate international relations.
- Limited Effectiveness: Success depends on cooperation from countries where scams originate, which may not always be forthcoming.
- Resource Allocation Concerns: The funding may not be enough to tackle the problem, potentially diverting resources from other needs.
- Privacy Risks: Increased data sharing could raise privacy concerns for individuals.
- Implementation Challenges: Coordinating multiple agencies and partners could lead to delays and inefficiencies.