John Cornyn Introduced Bill to Counter Foreign Cyber Scams

U.S Senator John Cornyn (R), joined by Jeanne Shaheen (D-NH), has introduced the Scam Compound Accountability and Mobilization (SCAM) Act. The bipartisan bill is aimed at combating foreign cyber scams and holding transnational criminal organizations accountable for human trafficking, forced criminality, and cyber-enabled fraud that targets Americans.

"Transnational criminal organizations who are ensnaring innocent victims and coercing them into defrauding Americans must be held accountable," Cornyn commented. He went on to explain that the bill "would take strategic steps to combat the growing threat of cyber scams posed by criminals connected to China and other bad actors and safeguard Americans and their pocketbooks."

Shaheen emphasized the urgency, noting that scam operations abroad are "trafficking people, forcing crime, and draining billions from Americans every year."

"I'm proud to join this bipartisan effort to mount a comprehensive, whole-of-government response to hold these international criminal actors accountable and protect Americans' hard-earned money," Shaheen said.

According to the FBI, cyber fraud resulted in nearly $14 billion in losses in 2024 alone. Many of these operations, referred to as "scam compounds," are run by transnational criminal organizations in Southeast Asia with links to the People's Republic of China.

Victims are trafficked and coerced into committing online scams under duress, swindling Americans at a massive scale.

The SCAM Act requires the U.S. Secretary of State to develop a comprehensive strategy to counter scam compounds by preventing recruitment fraud, enhancing international law enforcement cooperation, supporting survivors of human trafficking, and holding countries accountable that allow these operations to continue.

It also establishes a task force to oversee implementation and mandates annual progress reports to Congress.

The legislation builds on the recent Treasury Department sanctions against Southeast Asian scam networks in September 2025 and aims to strengthen U.S. and partner efforts to dismantle these operations.