Scam Victims Face Record Losses and Limited Recourse

A record $15.9 billion in losses was reported to the Federal Trade Commission last year, marking a 25% increase from 2024. Experts believe that real losses were close to $200 billion.

An investigation by The Associated Press and FRONTLINE found that scam victims have little recourse despite efforts by the Trump administration and Congress to combat scams. The investigation included interviews with 58 victims, who lost between several thousand dollars and $4 million each.

Many victims reported paying more in taxes after being scammed, as the IRS often demands taxes on funds withdrawn from tax-deferred accounts. Prior to 2018, victims of theft or fraud could deduct losses from their taxable income, but this provision was made permanent in 2025.