The SCAM Act (Stopping Cross-border Attacks and Manipulation Act) directs the Department of Defense to create a special task force to investigate and combat international cybercrime scams that target Americans. The bill focuses particularly on fraud operations run by criminal organizations in Southeast Asia that are allegedly connected to the Chinese government.

The problem this addresses is significant: criminal groups operating "fraud farms" in Southeast Asia steal roughly $44 billion annually through digital scams. In 2024 alone, Americans lost nearly $2 billion to scam text messages, emails, and phone calls. The bill notes that these operations have trafficked an estimated 300,000 people into forced labor at scam centers, and that scam compounds have been built near U.S. military bases in the Philippines, raising national security concerns.

The task force will bring together officials from multiple government agencies—including the State Department, Defense Department, FBI, Federal Trade Commission, Treasury Department, and Justice Department—to coordinate investigations and develop solutions. Within one year, the task force must submit a report to Congress identifying trends in these scam operations and recommending policy options. These recommendations could include using sanctions, seizing criminal assets, and taking defensive action in cyberspace. The task force will also develop ways to protect vulnerable Americans (like the elderly) and help states and communities affected by these scams. The task force's authority will expire five years after it submits its initial report.