Washington, Jan 25 (NationPress) Networks connected to China are siphoning off billions from diligent American families, creating an escalating risk for households throughout the United States, prominent senators have stated. As lawmakers advocate for bipartisan legislation to combat fraud associated with cryptocurrency, human trafficking, and international scam operations, the urgency grows.

Senate Aging Committee Chairman Rick Scott labeled the situation a national security issue during a recent hearing, revealing that scams targeting seniors have resulted in the loss of savings accumulated over many years, severely impacting families nationwide.

Scott claimed that Beijing has facilitated the growth of this criminal network, asserting, “Communist China is at the heart of the global scam industry that undermines American savings and disrupts family stability.”

According to Scott, older Americans lost over $4.8 billion to scams in 2024, as reported by the FBI, calling these staggering losses a crisis. Many victims are retirees whose lives have been devastated by criminal networks operating from abroad.

The committee's report, titled Age of Fraud, indicates that these crimes are part of a larger scheme. “These are highly organized, transnational enterprises,” he stated, noting that many are “directed or facilitated by the Chinese Communist Party.”

Scott elaborated that these networks utilize Chinese platforms and payment systems while maintaining scam operations in Myanmar, Cambodia, Laos, and other Southeast Asian regions, often employing trafficked individuals forced into scam activities targeting Americans.

Ranking Member Kirsten Gillibrand remarked that the sophistication of scams has increased due to the emergence of scam centers, modern technology, and the utilization of cryptocurrency. She cited a case from Jefferson County, New York, where a senior was manipulated into withdrawing most of his retirement savings to invest in cryptocurrency through a romance scam.

“That is a loss that stings,” Gillibrand noted, emphasizing the emotional and financial harm such scams inflict on families and retirees.

Victims often find it challenging to report scams due to feelings of stigma and shame, Gillibrand explained, highlighting that certain communities face additional obstacles such as language barriers and fear. Asian immigrants, particularly Chinese Americans, are frequently targeted due to common language and cultural ties to China.

Both senators are advocating for legislation aimed at creating a unified federal response. Scott and Gillibrand, along with Senators Ashley Moody and Mark Kelly, have introduced the National Strategy for Combating Scams Act, which seeks a comprehensive government approach to tackle fraud.

Scott also pointed to the SCAM Act, recently passed by the Senate, which would empower the Treasury Department to impose sanctions against scam operations and the networks supporting them.

Additionally, the senators are promoting the GUARD Act, designed to strengthen penalties for criminals targeting older Americans and enhance law enforcement tools. Scott emphasized that these bipartisan measures reflect “common sense.”

Testimonies during the hearing revealed that China-linked networks are integral to global scam activities. Nathan Picarsic from the Foundation for Defense of Democracies noted that scams targeting seniors represent a broader strategic challenge.

“Social cohesion is a crucial battleground,” Picarsic stated, indicating that Chinese criminal organizations are “tolerated and sometimes aided by the Chinese state,” leveraging advanced technology and a global banking infrastructure that complicates the recovery of stolen funds.

AARP fraud expert Kathy Stokes described fraud as a national crisis, stating that the Federal Trade Commission initially reported $12.8 billion lost in 2024, later revising the figure to an astonishing $196 billion, with seniors accounting for $81 billion of that total.

She explained that victims who lose their savings often face significant tax liabilities on stolen funds. “They’re being revictimized by the federal government,” Stokes urged, calling for tax relief for scam victims.

Jacqueline Burns Koven from Chainalysis reported rapid growth in cryptocurrency scams, citing 2025 as a record year with an estimated $17 billion stolen. She noted that Chinese scam groups are leaders in this field, using cryptocurrency and artificial intelligence to scale their operations.

A government accountability official pointed out that the federal response lacks coordination. Seto Bagdoyan remarked that there is no unified government strategy or common definition for scams, hindering enforcement and accountability.

Scams targeting older adults have expanded alongside digital payment systems, social media, and online investment platforms, with criminals exploiting urgency, impersonation, and emotional manipulation to pressure victims into hasty decisions.