Kathmandu— Scams in the United States have reached unprecedented levels, causing billions of dollars in losses. Many victims, like Simon who lost $800,000 to a romance scam, struggle for recourse as they face additional fees, taxes, and dismissive law enforcement responses. Despite efforts by the Trump administration and Congress, scam victims often find themselves without support or relief.

Victims' Plight

In interviews with nearly five dozen victims, AP and FRONTLINE found that many faced ridicule from friends and family, mounting pressure from banks and lenders, additional taxes on withdrawn funds, and neglect from a government they believed would protect them. Erin West, founder of the nonprofit Operation Shamrock, said, “What happens after the scam might even be worse than the scam itself.” Victims often struggle with emotional trauma and financial ruin.

Global Scam Industry

The size of the global scam industry is staggering. Americans reported a record $15.9 billion in losses last year to the Federal Trade Commission, a 25% increase from 2024. The FTC estimates real losses were close to $200 billion in 2024. This surge is fueled by advances in artificial intelligence and cryptocurrency, which allow scammers to operate at unprecedented scales.

Government Response

The U.S. government is taking steps to combat scams, including the establishment of a centralized website for complaints (ReportScams.gov) and an executive order directing the attorney general to prioritize scam prosecutions. However, advocates argue that funding hasn't flowed to federal agencies tasked with combating scams, leading to sluggish strategies and inadequate support for victims.

International Models

The U.S. lags behind other countries in tackling scams. In the UK, financial services companies generally have to reimburse clients tricked into sending money to scammers, while the EU requires financial institutions to implement adequate fraud protections or face penalties. Singapore’s Shared Responsibility Framework mandates that banks and telecoms repay victims if they fail to implement required safeguards.

As scams continue to surge, victims like Simon are left with little recourse and often find themselves in deeper financial trouble.

(With inputs from AP)

Originally published on abcnews.com.np.