HR6770-119

What This Bill Does

The Scam Defense Strategy Act frames transnational scam compounds as both consumer fraud and a national security threat. Its findings cite estimates that China-linked organized crime groups operating fraud farms in Southeast Asia steal nearly $43.8 billion annually through digital scams. It cites 2024 Federal Trade Commission data: 246,783 scam texts causing $469 million in losses, 371,664 scam emails causing $502 million in losses, and 284,651 scam phone calls causing $948 million in losses to Americans. The findings allege ties between these criminal networks and the Chinese Communist Party, including support by Chinese officials and state-owned enterprises for facilities linked to organized crime. The operative requirement directs the Commander of United States Cyber Command to submit a report to the Secretary of Defense and Congress within 6 months recommending defensive actions in cyberspace to deter and disrupt those networks.

Who Benefits and How

Americans targeted by scam texts, emails, and phone calls benefit if Cyber Command identifies defensive cyberspace options that reduce fraud-farm operations or the infrastructure behind them. Elderly and socially isolated people benefit because the findings identify them as especially vulnerable. Defense and Indo-Pacific policymakers benefit from a structured Cyber Command assessment connecting fraud farms, trafficking, cybercrime, Chinese influence, and regional stability. Law enforcement and consumer-protection agencies benefit indirectly from clearer military cyber recommendations that could complement criminal and civil enforcement.

Who Bears the Burden and How

United States Cyber Command must analyze the threat, identify defensive cyberspace actions, coordinate with the Secretary of Defense, and produce the required report within 6 months. Defense Department policy staff must receive and process the recommendations for congressional oversight. China-linked organized crime networks and fraud-farm operators face increased risk of defensive cyber disruption if recommendations are adopted. Federal taxpayers fund the analytic and reporting work.

Key Provisions

• Establishes congressional findings that China-linked Southeast Asian fraud farms steal an estimated $43.8 billion annually through digital scams.
• Provides 2024 FTC loss figures for scam texts, emails, and phone calls affecting Americans.
• Identifies transnational organized scam networks as a national security and regional stability threat.
• Requires United States Cyber Command to recommend defensive cyberspace actions within 6 months.
• Directs the report to the Secretary of Defense and Congress for oversight and follow-up.