Report: Government needs a sweeping anti-scam strategy to counter modern fraud

"The government needs to make a plan to address scams as a national security crisis, according to a strategy a group of over 80 public, private and nonprofit actors released last week. With scammers often part of transnational criminal organizations using fraud to fund other crimes like human trafficking, the threat is not only to individual Americans, but also to national security, argues the group, led by the Aspen Institute Financial Security Program."

"U.S. consumers lose an estimated $158 billion a year to fraud, according to the Federal Trade Commission, and nearly 75% of Americans say they've fallen prey to an online scam or attack. The threat is only getting worse, with cryptocurrency and artificial intelligence enabling even more fraud, and the United States lacks a coordinated strategy, the task force says. Various agencies work on fraud and scam issues, including the FBI and Department of Justice, but no one agency has the resources or mandate to coordinate efforts, as the Stimson Center has argued."

"In a letter to top lawmakers on Capitol Hill, the group points to recent Treasury Department sanctions on various Mexican individuals and companies for timeshare fraud centered in Puerto Vallarta, Mexico, led by the Cartel de Jalisco Nueva Generacion. The cartel, a U.S.-designated foreign terrorist organization, is using the money as an alternative revenue stream to supplement its drug trafficking proceeds, Treasury says. The scheme targets U.S. owners of timeshares through Mexican call centers that ask owners to pay"

Scams have escalated into a national security risk as transnational criminal organizations use fraud to finance other crimes, including human trafficking. U.S. consumers lose an estimated $158 billion annually to fraud, and nearly 75% of Americans report experiencing online scams or attacks. Cryptocurrency and artificial intelligence are expanding the scale and sophistication of fraudulent schemes. Multiple agencies, including the FBI and Department of Justice, address fraud but no single agency has the mandate or resources to coordinate a nationwide response. The recommended priority of a national anti-scam strategy is to make scams less profitable while engaging public and private partners.

Read at Nextgov.com