STOP Scammers Act Gives Treasury Power to Freeze Foreign Fraud Assets Instantly, Targeting Global Scams.

The Strengthening Targeting of Organized Predatory Scammers Act, or the STOP Scammers Act, is setting up a new, powerful mechanism to combat foreign fraud. This bill authorizes the Secretary of the Treasury, in collaboration with the Attorney General, to officially designate foreign companies—and their subsidiaries—as “Foreign Financial Threat Organizations” if they are actively using fraud to trick U.S. citizens or residents out of money or assets (SEC. 2. Naming the Threat Organizations).

If you’ve ever had a relative lose money to an overseas phone scam or seen news reports about massive call center fraud operations, this bill is designed to hit those groups where it hurts most: their wallets. Once the Treasury Secretary notifies Congress of the designation, they can immediately order U.S. financial institutions to freeze all transactions related to that organization’s assets. This freeze happens instantly upon notification, giving the government a fast-track way to shut down the flow of money before these organizations can move it.

The Terrorist Playbook for Scammers

Here’s where the bill gets heavy-hitting: the penalties for these designated scam organizations are the same as those applied to groups designated as global terrorist organizations under existing executive orders (SEC. 2. Freezing Assets and Immediate Effects). This means the U.S. government is elevating large-scale, organized financial fraud to the same level of severity as national security threats. For a foreign company running a massive phishing operation, this designation doesn’t just mean frozen bank accounts; it means they are essentially blacklisted from operating within the global financial system that touches the U.S.

Cutting the Cord: Internet Access on the Line

Beyond financial penalties, the bill gives the government explicit authority to take “necessary actions” against these designated organizations to protect U.S. cybersecurity and stop them from accessing internet or cellular services. Furthermore, the Treasury Secretary must take steps to prevent these groups from contacting U.S. citizens or residents via phone, email, or the internet (SEC. 2. Enforcement and Contact Ban). Think of it as the U.S. government having the power to tell internet service providers and telecom companies to cut off the scammers’ digital lifeline. While this is great news for victims, the language granting authority to take “necessary actions” against internet services is broad, and its implementation will need careful scrutiny to ensure it doesn't inadvertently affect legitimate services or overreach.

Accountability and the Long Game

Two years after enactment, and every year thereafter, the Treasury Secretary must submit a detailed report to Congress (and a public version) outlining which organizations were named, how much money was seized, and, critically, how much money was returned to the victims of the fraud (SEC. 2. Reporting Requirements). This reporting requirement is a key piece of accountability, forcing the government to track not just enforcement, but actual victim restitution. For the everyday person who lost their savings, the promise of recovery is the most important part of this whole operation. However, the concentration of power—allowing the Treasury Secretary to freeze assets immediately based on an agreement with the Attorney General—is significant. While speed is essential in chasing financial criminals, this process grants substantial executive authority without an explicit, immediate check before the financial hammer drops.