U.S. Senators John Cornyn (R-TX) and Jeanne Shaheen (D-NH) have introduced the Scam Compound Accountability and Mobilization (SCAM) Act, a bipartisan bill designed to address foreign cyber scams and hold transnational criminal organizations responsible for human trafficking, forced criminality, and cyber-enabled fraud schemes targeting Americans.
“Transnational criminal organizations who are ensnaring innocent victims and coercing them into defrauding Americans must be held accountable,” said Sen. Cornyn. “This legislation would take strategic steps to combat the growing threat of cyber scams posed by criminals connected to China and other bad actors and safeguard Americans and their pocketbooks.”
“Scam operations overseas are trafficking people, forcing crime, and draining billions from Americans every year,” said Sen. Shaheen. “I’m proud to join in this bipartisan effort to mount a comprehensive, whole-of-government response to hold these international criminal actors accountable and protect Americans’ hard-earned money.”
According to background information provided by the senators, transnational criminal organizations—many based in Southeast Asia with ties to the People’s Republic of China—are increasingly conducting large-scale cyber scam operations against U.S. citizens. These groups reportedly lure victims under false pretenses into secure facilities known as scam compounds, where they are then forced into committing cybercrimes that defraud Americans of billions annually.
The Federal Bureau of Investigation reported nearly $14 billion in losses due to cyber-enabled fraud in 2024. While Chinese authorities have acted against compounds targeting their own citizens, they have largely ignored those defrauding Americans.
The SCAM Act would require the U.S. Secretary of State—working with the Attorney General, Treasury Secretary, and other agencies—to submit a comprehensive strategy to Congress aimed at countering scam compounds. The strategy includes preventing recruitment fraud, improving law enforcement capabilities among partner governments, supporting survivors of human trafficking, combating money laundering associated with these scams, and holding countries that enable such operations accountable.
A task force would be established under the bill to implement this strategy over six years; it would also evaluate progress annually through reports submitted to Congress. The legislation allows for International Emergency Economic Powers Act sanctions against foreign individuals who support or enable international scam compound activities.
In September 2025, the U.S. Department of the Treasury imposed significant sanctions on a network of Southeast Asian scam centers; this legislative proposal seeks to expand upon previous efforts made during The Trump administration.
John Cornyn has previously won several general elections for his Senate seat: he defeated MJ Hegar in 2020 with 53.5% of votes; David Alameel in 2014 with 61.6%; Rick Noriega in 2008 with 54.8%; and Ron Kirk in 2002 with 55%.
