SCAM Act

Bill Number

H.R. 5900

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

International Affairs

Status

Introduced

Latest Action

2025-10-31: Referred to the House Committee on Foreign Affairs.

Last Updated

2025-11-19T17:23:23Z

AI-Generated Summary

Purpose

The Stopping Cross-border Attacks and Manipulation Act (SCAM Act) aims to address the growing threat of transnational cybercrimes, particularly scam operations linked to Chinese organized crime groups in Southeast Asia. It directs the Department of Defense (DoD) to create a coordinated task force to investigate, disrupt, and protect U.S. citizens from these digital fraud schemes, which involve fraudulent texts, emails, calls, and data theft. The legislation highlights national security risks, including ties to the Chinese Communist Party (CCP), human trafficking, espionage, and regional instability.

Key Provisions

• Establishment of Joint Task Force: The Secretary of Defense, through U.S. Cyber Command, must form a task force in coordination with other federal agencies to investigate and counter transnational cybercrimes, focusing on foreign-operated scam networks targeting Americans.
• Membership: The task force includes representatives from:
• Department of State (e.g., offices on emerging threats, narcotics/law enforcement, and human rights).
• DoD (U.S. Cyber Command and National Mission Force).
• Office of the Director of National Intelligence.
• Federal Trade Commission (FTC) and Federal Communications Commission (FCC).
• Department of the Treasury (Office of Foreign Assets Control and Financial Crimes Enforcement Network).
• Department of Justice (various divisions on crime, international affairs, national security, and cyber issues).
• Federal Bureau of Investigation (FBI) Internet Crime Complaint Center.
• State and local governments affected by cybercrimes.
• Relevant non-profit organizations.
• Leadership and Priorities: DoD assigns an internal lead office for coordination. The task force prioritizes scams tied to the CCP in the Indo-Pacific region.
• Required Report: Within one year of enactment, the task force must submit a report to the House and Senate Armed Services Committees, covering:
• Emerging trends in scam operations linked to international criminal groups (e.g., data theft from U.S. persons, ties to adversarial governments, proximity to military sites, influence on regional governments, and infrastructure development).
• Policy recommendations, including sanctions, asset forfeiture, and defensive cyber actions to protect U.S. data, allies' sovereignty, and military installations.
• A "whole-of-society" framework to support affected groups (e.g., elderly, isolated individuals) via public information dissemination through federal, state, and local venues like post offices and veterans' facilities.
• Assessments of scam center scale in Southeast Asia, Chinese government exploitation for influence, and ties to regional entities profiting from scams.
• Implementation and Duration: The task force assists in enacting report recommendations. It sunsets five years after the report is submitted.

Significant Changes to Existing Law

This bill introduces a new, interagency task force specifically focused on transnational cybercrimes and scam networks, which does not appear to exist in current law. It mandates DoD leadership in coordination with civilian agencies, emphasizing a "whole-of-government" approach. No explicit amendments to prior statutes are mentioned, but it could expand authorities for cyber defense, sanctions, and information sharing under existing frameworks like those from the FTC, DOJ, and Treasury.

Potential Impacts

• On Government Agencies: Enhances interagency collaboration, potentially increasing DoD's role in non-military cyber threats. Agencies like the FTC and FBI may see more resources for scam tracking, while Treasury could apply financial tools like sanctions more aggressively against foreign networks.
• On Citizens: Improves protection for vulnerable groups (e.g., elderly) from financial losses (estimated at billions annually from scams) and data theft, through better awareness and disruption of fraud schemes. It promotes public education via accessible federal sites.
• On International Relations: Could strain U.S.-China ties by targeting CCP-linked activities, including accusations of espionage and influence in Southeast Asia. It may strengthen U.S. partnerships with Indo-Pacific allies (e.g., Philippines) by addressing shared threats to military sites and sovereignty, while pressuring regional governments to combat scam operations and human trafficking.

Main Stakeholders Affected

• U.S. Citizens: Especially elderly, socially isolated individuals, and scam victims facing financial and privacy losses.
• Federal Agencies: DoD, State Department, DOJ, FBI, FTC, Treasury, and intelligence community, required to coordinate and report.
• State and Local Governments: Those leading cybercrime efforts or heavily impacted, gaining a role in the task force.
• International Actors: Southeast Asian governments and entities tied to scam centers; Chinese organized crime groups and CCP-linked networks; U.S. allies in the Indo-Pacific (e.g., Philippines) near affected military installations.
• Non-Profits and Industry: Expert organizations and communication platforms involved in countering scams and disseminating guidance.

Notable Legal, Constitutional, or Political Implications

• Legal: Expands potential use of sanctions (economic penalties on foreign entities) and civil asset forfeiture (seizing illegal proceeds) against cyber threats, which could raise questions about due process for non-U.S. targets. Defensive cyber actions must align with international law to avoid escalation.
• Constitutional: Involves no direct challenges, but interagency coordination under DoD leadership may test separation of military and civilian roles in domestic protection (e.g., against scams affecting U.S. persons).
• Political: Frames cybercrimes as a national security issue tied to China, potentially fueling bipartisan support for Indo-Pacific strategy but risking diplomatic backlash. The five-year sunset provides a review mechanism, allowing Congress to assess effectiveness without permanent expansion.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Vindman, Eugene Simon [D-VA-7]

Cosponsors (1)

Rep. Baird, James R. [R-IN-4]

Recent Actions

• 2025-10-31: Referred to the House Committee on Foreign Affairs.
• 2025-10-31: Introduced in House
• 2025-10-31: Introduced in House

Bill Versions

• Stopping Cross-border Attacks and Manipulation Act — issued 2025-10-31 — PDF (10 pages)