STOP Scammers Act
- Bill Number
- S. 2670
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2025-08-01: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Last Updated
- 2025-09-18T20:05:21Z
AI-Generated Summary
Purpose
The Strengthening Targeting of Organized Predatory Scammers Act (STOP Scammers Act) aims to combat foreign-based financial scams targeting U.S. citizens and lawful permanent residents by requiring the Secretary of the Treasury to identify and designate certain foreign organizations as "Foreign Financial Threat Organizations." This enables the U.S. government to impose financial sanctions, block assets, and restrict communications to protect victims and enhance cybersecurity.
Key Provisions
- Designation Process: The Secretary of the Treasury must designate qualifying foreign organizations as Foreign Financial Threat Organizations within 90 days of the bill's enactment. A "covered organization" is defined as a foreign entity (or its subsidiaries/affiliates) that engages in fraudulent activities to deceive U.S. citizens or lawful permanent residents into providing cash or assets, as determined jointly by the Treasury Secretary and the Attorney General.
- Notification and Publication: Before designating an organization, the Secretary must notify key congressional leaders and relevant committees in writing, including the factual basis. Designations must be published in the Federal Register within 7 days of notification.
- Asset Freezing: Upon notification to Congress, the Secretary can order U.S. financial institutions to freeze (block) all transactions involving the organization's assets until further instructions from the Secretary, Congress, or a court.
- Penalties and Procedures: Designated organizations face the same penalties and processes as those labeled as "specially designated global terrorists" under Executive Order 13224 (which blocks property and prohibits transactions with entities supporting terrorism).
- Enforcement Actions: The federal government can take steps to safeguard U.S. cybersecurity and restrict the organization's access to internet or cellular services.
- Prohibition on Contact: The Secretary must prevent designated organizations from contacting U.S. citizens or lawful permanent residents via phone, internet, or email.
- Reporting Requirements: The Secretary must submit annual reports to specified congressional committees (e.g., Senate Banking Committee, House Financial Services Committee) starting 2 years after enactment. Reports cover designations made, assets seized, identification efforts, and funds returned to victims. A public version (redacting sensitive details) must be released.
Significant Changes to Existing Law
- Introduces a new sanctions category ("Foreign Financial Threat Organizations") specifically for foreign scammers, adapting the terrorism-related framework of Executive Order 13224 to non-terrorism financial fraud.
- Expands Treasury's authority to include proactive asset freezes upon congressional notification (rather than solely post-designation) and mandates joint determinations with the Attorney General for designations.
- Adds novel restrictions on communications and service access (e.g., internet/cellular blocks), which go beyond traditional financial sanctions by targeting operational capabilities.
- Requires ongoing congressional reporting and public disclosure, increasing transparency compared to some existing sanctions regimes.
Potential Impacts
- On Government Agencies: Places new responsibilities on the Treasury Department (designations, enforcement, reporting) and Attorney General (joint determinations), potentially requiring additional resources for investigations and cybersecurity measures. Involves coordination with financial institutions and congressional oversight.
- On Citizens: Enhances protection for U.S. citizens and lawful permanent residents by disrupting scam operations, freezing scammers' assets, and aiming to return victim funds, which could reduce financial losses from fraud (estimated at billions annually).
- On International Relations: May strain ties with countries hosting designated organizations by imposing extraterritorial restrictions on foreign entities, potentially leading to diplomatic pushback or calls for cooperation in anti-fraud efforts.
Main Stakeholders Affected
- U.S. Citizens and Lawful Permanent Residents: Primary beneficiaries as victims of scams, gaining protections and potential fund recovery.
- Foreign Scamming Organizations: Directly targeted with sanctions, asset freezes, and operational restrictions, limiting their ability to operate.
- U.S. Financial Institutions: Required to comply with asset-blocking orders, facing compliance costs but aiding enforcement.
- Federal Agencies: Treasury and Justice Departments lead implementation; congressional committees provide oversight.
- Victims' Advocacy Groups and Anti-Fraud Organizations: Indirectly supported through enhanced government tools and reporting.
Notable Legal, Constitutional, or Political Implications
- Legal: Broadens the application of sanctions laws (e.g., under the International Emergency Economic Powers Act, implied via EO 13224) to financial fraud, potentially setting precedents for hybrid threats (fraud + cybersecurity risks). Joint Treasury-Attorney General determinations ensure legal rigor but could invite challenges over evidence standards.
- Constitutional: Restrictions on foreign entities' communications and service access raise minimal First Amendment concerns (as they apply to non-U.S. persons abroad), but asset freezes without immediate court involvement might prompt due process lawsuits if affecting U.S.-linked parties. Emphasizes executive branch authority with congressional checks.
- Political: Likely to garner bipartisan support due to public frustration with scams; reinforces U.S. stance on global financial security without new funding mandates. Could influence future legislation on cyber-fraud or international cooperation treaties.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2025-08-01: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 2025-08-01: Introduced in Senate
Bill Versions
- Strengthening Targeting of Organized Predatory Scammers Act — issued 2025-08-01 — PDF (5 pages)