Scam Defense Strategy Act
- Bill Number
- H.R. 6770
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Armed Forces and National Security
- Status
- Introduced
- Latest Action
- 2025-12-16: Referred to the House Committee on Armed Services.
- Last Updated
- 2026-01-06T20:00:25Z
AI-Generated Summary
Purpose
The "Scam Defense Strategy Act" (H.R. 6770) aims to address threats from transnational organized crime networks linked to the Chinese Communist Party (CCP) that run digital scams, such as fraud via texts, emails, and calls. It requires a report to guide U.S. cyber defenses against these networks, highlighting their impact on U.S. security, economy, and privacy.
Key Provisions
- Findings Section: Congress outlines 12 key facts, including:
- China-linked crime groups operating "fraud farms" in Southeast Asia steal an estimated $43.8 billion yearly through scams, increasingly targeting vulnerable Americans like the elderly.
- In 2024, the Federal Trade Commission reported over 246,000 scam texts causing $469 million in losses, 371,000 scam emails causing $502 million in losses, and 284,000 scam calls causing $948 million in losses.
- These groups have ties to the CCP, with Chinese officials supporting scam facilities, funneling U.S. data and funds to a hostile power.
- Scams destabilize Southeast Asia by funding conflicts, trafficking ~300,000 people (including U.S. citizens) into forced labor akin to modern slavery, and enabling espionage near U.S. military sites in the Philippines.
- The networks pressure regional governments for Chinese security involvement, undermining sovereignty and U.S. interests in the Indo-Pacific.
- A whole-of-government U.S. response is needed, involving intelligence, finance, diplomacy, defense, and law enforcement.
- Report Requirement: Within 6 months of enactment, the Commander of U.S. Cyber Command must submit a report to Congress recommending cyber actions for the Secretary of Defense to protect the U.S., its citizens, assets, and interests from these CCP-linked scam networks.
Significant Changes to Existing Law
This bill introduces a new reporting mandate specifically targeting cyber threats from CCP-linked organized crime. It does not amend prior laws but builds on existing national security frameworks by formalizing congressional oversight of cyber defense strategies against these scams, which were not previously addressed in such detail.
Potential Impacts
- Government Agencies: U.S. Cyber Command and the Department of Defense will need to allocate resources for report preparation and potential follow-on cyber actions, fostering inter-agency coordination on cyber threats.
- Citizens: Could enhance protections against digital scams, reducing financial losses (estimated in billions annually) and data breaches, especially for vulnerable groups like seniors.
- International Relations: May strain U.S.-China ties by publicly linking the CCP to crime and espionage; could strengthen U.S. alliances in Southeast Asia (e.g., Philippines) through shared concerns over regional stability and human trafficking, while pressuring China on transnational crime.
Main Stakeholders Affected
- U.S. Government Entities: Congress (receives report), U.S. Cyber Command, Department of Defense, Federal Trade Commission, and agencies involved in intelligence and law enforcement.
- U.S. Citizens: Particularly scam victims, including the elderly and isolated individuals, who face financial and privacy harms.
- Transnational Actors: CCP-linked crime networks and their operations in Southeast Asia, facing potential U.S. cyber countermeasures.
- International Parties: Southeast Asian governments (e.g., Philippines) affected by scam facilities and trafficking; broader Indo-Pacific allies impacted by regional instability.
Notable Legal, Constitutional, or Political Implications
- Legal: Establishes a clear congressional directive for cyber defense reporting under national security authorities, potentially enabling future executive actions without new legislation; aligns with existing anti-trafficking and cyber laws but emphasizes foreign-linked threats.
- Constitutional: Reinforces Congress's oversight role in defense and foreign affairs (Article I powers), ensuring military cyber strategies address emerging threats like organized crime.
- Political: Highlights bipartisan concern over China as a security risk, potentially influencing U.S. policy in the Indo-Pacific; raises human rights issues (e.g., trafficking as a crisis) that could spur diplomatic efforts, though it risks escalating tensions with China without direct enforcement mechanisms.
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)
Recent Actions
- 2025-12-16: Referred to the House Committee on Armed Services.
- 2025-12-16: Introduced in House
- 2025-12-16: Introduced in House
Bill Versions
- Scam Defense Strategy Act — issued 2025-12-16 — PDF (5 pages)