Washington. A cyber scam in the United States has highlighted how the financial impact of online fraud can extend far beyond the money directly stolen by criminals. Susan Bivins, a retired nurse, was allegedly deceived by a scammer posing as a federal officer and was persuaded to withdraw around ₹1.8 crore from her retirement accounts, which she subsequently lost to the fraudster. Her ordeal became even more difficult when the US Internal Revenue Service (IRS) told her that she owed around ₹70 lakh in taxes on the withdrawals. Under mounting financial pressure, Bivins sold her home and moved into a small one-bedroom apartment.
Bivins reported the fraud to the Federal Bureau of Investigation (FBI) and local police. However, she said she did not receive the assistance she had hoped for in recovering her money. The financial loss, combined with the tax liability, placed her under severe pressure. At one point, she said she could not understand how she would manage to continue living.
Her case is part of a broader investigation into the growing impact of online scams in the US. Investigators spoke to 58 victims from different age groups and financial backgrounds. They included doctors, information technology professionals, academics and people struggling financially. Their losses ranged from several thousand dollars to amounts equivalent to tens of crores of rupees.
Financial Crisis Often Continues After the Scam
The investigation found that losing money to a scam can be only the beginning of a victim’s financial problems. Bank charges, loan repayments, legal expenses and tax liabilities can create additional burdens after the stolen money is gone.
US consumers reported around $15.9 billion, or more than ₹14 lakh crore, in losses from scams last year. The figure was about 25% higher than in 2024. However, the actual losses are believed to be significantly higher because many victims do not report scams due to embarrassment, shame or fear of social stigma.
The increasing use of artificial intelligence and cryptocurrency has also made scams more sophisticated. Artificial intelligence allows scammers to target large numbers of people more efficiently, while cryptocurrency transactions can make it difficult for investigators to identify the ultimate controllers of stolen funds.
Tax Rules Add to Victims’ Burden
Bivins’ case has also raised questions about the impact of US tax rules on fraud victims. Withdrawals from tax-deferred retirement accounts can generally become taxable. The problem becomes particularly severe when money withdrawn from such an account is subsequently stolen in a scam.
Before 2018, victims of theft or fraud could, in certain circumstances, deduct their losses from taxable income. Changes to US tax law subsequently removed tax relief for personal losses arising from many common scams. The provision was made permanent in 2025.
As a result, some victims can face tax liabilities even after the money has disappeared because of fraud.
That is what happened to Bivins. After losing around ₹1.8 crore to a scammer posing as a federal officer, she received an IRS tax bill of approximately ₹70 lakh. Under financial pressure, she sold her home. She now lives in a smaller apartment and has been selling handmade quilts to help pay the outstanding tax bill.
A bill called the Tax Relief for Fraud Victims Act is currently under consideration in the US Congress. It seeks to restore tax relief for certain scam victims by allowing qualifying losses to be deducted from taxable income.
Recovering Stolen Money Is Also Difficult
Even when victims report fraud quickly, recovering stolen money can be extremely difficult. Under current US law, banks generally are not required to reimburse customers when they themselves authorised transactions after being deceived. Banks are more likely to bear responsibility when money is taken without the customer’s authorisation.
Cryptocurrency-related fraud can make recovery even more challenging. Crypto assets are not covered by federal insurance in the same way as bank deposits. International transactions and the movement of funds through multiple accounts can also make it difficult for investigators to identify the ultimate beneficiary.
Another victim, Brian Glick, lost around ₹5.1 crore. He contacted the FBI, an elder abuse hotline, the Securities and Exchange Commission and the New York State Attorney General’s Office. The FBI contacted cryptocurrency company Tether in an effort to freeze funds connected to his case. However, Tether said the money had already been moved and mixed with other funds by the time it was contacted.
Government Steps Up Anti-Scam Efforts
The US Congress is considering more than a dozen bills aimed at tackling scams. Proposals include creating a central website for reporting fraud and requiring disclosures for deepfakes and other artificial intelligence-generated audio and video.
The US Department of Justice has also established a Scam Center Strike Force to target criminal networks involved in scams and pursue the seizure of stolen funds. Despite these efforts, victims and experts argue that government measures have not yet kept pace with the rapidly expanding scale of online fraud.
The FBI’s Internet Crime Complaint Center receives an average of nearly 3,000 complaints every day. According to former FBI official Donna Gregory, the agency is able to investigate only around 10% to 12% of the cases reported through the system.
Bivins’ experience therefore illustrates not only the devastating impact of cyber fraud but also the long-term financial consequences that victims can face even after the scam itself has ended.
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About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
