Simon transferred $800,000 in money from his retirement fund to his "online lover", then had tens of thousands of dollars in back taxes from the ritir money.
After his wife of 43 years passed away, Simon almost didn't want to live anymore. In his grief, he turned to online chats and sought comfort from people in the same situation.
That's when he met and became acquainted with a woman calling herself Emily. When he transferred $800,000 to this "online lover", he discovered that this was an online scammer.
Simon reported to local police and the US Federal Bureau of Investigation (FBI), but said he did not receive significant assistance. After that, he was also approached by another person, promising to connect with the US Secret Service to get his money back if he continued to pay the fee.
"I was cheated, then continued to pay for the same amount of money," Simon said, saying he was being owed tens of thousands of dollars in taxes arising from the money withdrawn from his retirement account.
But Simon is not an isolated case. AP investigative reporting and the PBS program FRONTLINE show that fraud in the US is causing record losses, but many victims have little chance to get their money back. Some people even face taxes, bank fees, loans and subsequent scams.
The US Federal Trade Commission (FTC) recorded that the total loss of people in this country due to online fraud in 2025 is 15.9 billion USD, an increase of 25% compared to 2024. FTC believes that the actual number may be much larger because most victims do not report. The agency estimates real losses in 2024 at nearly 200 billion USD, equivalent to about 550 million USD per day.
AP and PBS interviewed 58 victims ranging from 32 to 90 years old, with amounts of money defrauded from several thousand to 4 million USD. This group includes doctors, information technology professionals, people with advanced degrees, and people with limited income.
Many people said they felt abandoned after reporting, and some thought about suicide. For those who withdraw money from their retirement accounts to transfer to scammers, the withdrawals can still be taxed by the US Internal Revenue Service (IRS) as usual.
Susan Bivins, a retired nurse, said she was tricked into withdrawing more than $200,000 in retirement money by someone pretending to be a federal employee. After not receiving help from the FBI and local police, Bivins continued to be informed that he had to pay $80,000 in taxes for this money. She had to sell her house, move into a one-bedroom apartment and is still paying her taxes in installments with the money she earned from selling handmade blankets.
Before 2018, some theft or fraud victims could deduct losses from taxable income. However, a provision in the Tax Cuts and Jobs Act effective in 2025 makes many personal losses due to fraud no longer eligible for tax deductions.
Kathy Stokes, in charge of fraud prevention at AARP, an organization that protects the rights of the elderly in the US, said that many people are paying "taxes they do not deserve and cannot afford to pay". The US Congress is considering a bill that would allow fraud victims to reduce the amount of tax payable corresponding to the amount of money lost.
Not only do victims face tax obligations, they also have difficulty working with banks. Banks are not always responsible when customers confirm transactions themselves under the manipulation of fraudsters. Under current US law, victims are only entitled to a refund if money was withdrawn from their account without their permission.
Alice Lin, 83 years old, was the only one of the 58 victims interviewed to successfully recover part of their property.
After her husband died, she met a man online, then was persuaded to withdraw money and invest in digital currency platforms. Lin then sued JPMorgan Chase, claiming the bank failed to protect elderly customers and failed to warn against large and unusual transactions.
The two sides reached an agreement for an undisclosed amount. JPMorgan Chase said the bank applied multiple layers of caution and decided to settle largely based on the cost of litigation.
Digital currencies also make asset recovery more difficult. Funds can be quickly moved, mixed with other transactions or through platforms abroad, where US law is difficult to apply.
US officials are stepping up their response to the wave of online fraud. The US Congress has considered more than 10 related bills, while the Department of Justice also established a specialized force to cut down infrastructure serving online fraud rings.
However, this effort is still fragmented. The US Government Comptroller's Office said at least 13 federal agencies deal with different aspects of fraud but there is no common definition, unified toll or national strategy.
The Federal Bureau of Investigation (FBI) receives an average of nearly 3,000 cybercrime reports each day through IC3, the agency's Internet crime complaint portal. Donna Gregory, former FBI leader in charge of IC3, said the agency is only able to investigate about 10-12% of reported cases.
