Analyst Brief November 11, 2026

H.R. 5490 — Dismantle Foreign Scam Syndicates Act, as amended

Current Status

Suspension Calendar

Executive Summary

H.R. 5490 establishes a whole-of-government interagency Task Force, chaired by the Secretary of State, to combat transnational criminal syndicates operating mass online scam centers primarily in Southeast Asia. Driven by a surge in cryptocurrency-based 'pig butchering' fraud that cost Americans an estimated $10 billion in 2024, the bill mandates a comprehensive strategy to disrupt these operations, which heavily rely on forced labor and human trafficking. The legislation authorizes targeted sanctions, asset recovery efforts, and offensive cyber operations while providing support for trafficking victims.

Bill Data

Primary Sponsor

Rep. Shreve

Bill Number

H.R. 5490

Session

119th

Co-Sponsors

Rep. MoolenaarRep. Rulli
View on Congress.gov ↗

Arguments For

  • Consumer Protection Win: Provides a strong, tangible response to the devastating 'pig butchering' scams that are financially ruining American seniors and retail investors.
  • Tough on China: Directly targets PRC criminal syndicates and investigates Chinese Communist Party (CCP) complicity in transnational crime, aligning with broader strategic competition goals.
  • Human Rights Champion: Addresses a severe and growing human rights crisis by targeting the forced labor and human trafficking networks that physically staff these scam centers.

Likely Supporters

Anti-Human Trafficking NGOs (e.g., Polaris Project)Consumer Protection Advocacy Groups (e.g., AARP)Cryptocurrency Industry Associations (seeking to clean up the ecosystem)

Arguments Against

  • Diplomatic Friction: Mandating investigations into the Burmese military and PRC officials, alongside authorizing offensive cyber operations, could complicate delicate diplomatic relations in the Indo-Pacific.
  • Bureaucratic Overlap: Interagency task forces can sometimes become bogged down in turf wars, particularly between State, DOJ, and Treasury regarding who takes the lead on enforcement versus diplomacy.
  • Implementation Challenges: Recovering stolen cryptocurrency assets from Southeast Asian jurisdictions with high levels of corruption is notoriously difficult, risking unmet expectations.

Likely Opponents

Foreign governments implicated in the report (PRC, Burma)

📋 Key Provisions

  • Establishes an interagency Task Force chaired by the Secretary of State, including DOJ, DHS, and Treasury, to develop a comprehensive disruption strategy within 240 days.
  • Directs the strategy to investigate PRC and Burmese military complicity, harness offensive cyber capabilities, and recover stolen assets.
  • Authorizes the President to impose asset-blocking and visa-revocation sanctions on foreign persons and corrupt officials enabling scam compounds.
  • Requires an annual report to Congress detailing sanctioned individuals, estimated financial losses, and the number of trafficking victims rescued.
  • Authorizes the Secretary of State to fund trauma-informed care and reintegration programs for victims of human trafficking forced to perpetrate these scams.
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Claim Analysis Page 3, Line 4

Notes that Americans lost at least $10 billion to these scams in 2024.

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"Americans lost at least $10,000,000,000"

Claim Analysis Page 4, Line 13

Requires the Task Force to submit a strategy within 240 days of enactment.

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"not later than 240 days after"

Claim Analysis Page 7, Line 18

Sunsets the Task Force five years after the date of enactment.

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"five years after the date of"

Claim Analysis Page 13, Line 23

Authorizes asset blocking sanctions against foreign persons operating scam compounds.

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"ASSET BLOCKING.—Notwithstanding the re-"

Claim Analysis Page 17, Line 9

Exempts victims of human trafficking from being subjected to sanctions.

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"victim of trafficking in per-"