US Congressional report finds fragmented federal response to cyber fraud

A report from the U.S. Congress Joint Economic Committee has concluded that federal efforts to combat international cyber scams remain disjointed. The investigation found that the U.S. government lacks a unified accounting of seized assets or a clear process for returning stolen funds to victims, despite billions in reported losses.

Americans reported nearly $18 billion in losses to cyber fraud last year, a figure that does not account for the many incidents that go unreported. While federal agencies like the FBI and the Federal Trade Commission handle asset recovery, the total sums returned represent only a small fraction of the losses sustained by the public. The report suggests that current partnerships with the private sector are voluntary and lack the necessary oversight to be effective.

Unlike jurisdictions such as the European Union, the U.K., and Australia, the United States has not yet implemented regulations to hold technology and financial firms liable for failing to prevent consumer fraud. The report urges the passage of pending legislation to establish a federal anti-scam strategy and a centralized support system for victims.