H.R. 5900 — SCAM Act

This section sets forth 12 congressional findings on China-linked transnational organized crime groups operating fraud farms in Southeast Asia, including their estimated annual theft of nearly $43.8 billion through digital scams; 2024 Federal Trade Commission-reported losses to Americans of $469 million from 246,783 scam text messages, $502 million from 371,664 scam emails, and $948 million from 284,651 scam phone calls; documented ties to the Chinese Communist Party with direct support from Chinese officials and state-owned enterprises; national security threats from funneling U.S. financial assets and personal information to China; regional destabilization through funding warlords and civil conflicts; trafficking of an estimated 300,000 individuals (including U.S. citizens) into cyber scam operations equated to modern slavery; links to Chinese espionage near Philippine air bases such as Clark and Basa; pressure on regional governments to allow Chinese security forces; and the need for a coordinated U.S. whole-of-government response.

This section establishes a joint task force, led by the Department of Defense through U.S. Cyber Command in coordination with other federal agencies, to investigate, disrupt, and protect U.S. citizens from transnational cybercrimes and foreign-operated scam networks (i.e., fraudulent text and direct messaging centers and other digital fraud schemes), with priority on scam operations tied to the Chinese Communist Party in the Indo-Pacific region. The task force includes representatives from the Departments of State, Defense (including U.S. Cyber Command and National Mission Force), Justice (including Criminal Division, Office of International Affairs, National Security Division, and Office of the Cyber Ambassador), Treasury (Office of Foreign Assets Control and Financial Crimes Enforcement Network), the Office of the Director of National Intelligence, Federal Trade Commission, Federal Communications Commission, Federal Bureau of Investigation's Internet Crime Complaint Center, affected state and local governments, and relevant non-profit organizations. Not later than one year after enactment, the task force must submit a report to the House and Senate Armed Services Committees that (1) identifies emerging trends in scam operations tied to international criminal organizations (e.g., scamming U.S. persons, ties to adversarial governments, land acquisition near U.S. and allied military installations, undermining U.S. diplomatic and security efforts, territorial expansion near critical waterways, and construction of militarily capable infrastructure); (2) recommends policy options including sanctions, civil asset forfeiture, and cyberspace actions to protect U.S. persons, data, assets, allies, and military installations; (3) proposes a whole-of-society framework to support affected groups via information dissemination at federal, state, and local facilities (e.g., U.S. Postal Service locations, Social Security Administration offices, military installations, and Department of Veterans Affairs facilities); (4) assesses the scale and trends of scam centers in Southeast Asia; (5) details Chinese government exploitation of scam centers for regional security and influence; and (6) identifies Southeast Asian government bodies, officials, militias, and corporations tied to or profiting from such scams. The task force must assist in implementing the report's recommendations, with its authority sunsetting five years after report submission.