Trump Targets Foreign Scam Networks as Crypto Losses Soar

White House Authorizes Private Sector Cyber Operations

President Donald Trump (@realDonaldTrump) has signed a National Security Presidential Memorandum (NSPM) titled "Expanding Capabilities to Combat Transnational Cyber-Enabled Crime," authorizing the federal government to partner with vetted private U.S. companies to conduct cyber surveillance and disruptive cyber operations against foreign transnational criminal organizations that target Americans through online fraud, ransomware, and other schemes.

The memorandum directs the National Coordination Center to establish and manage a program allowing participating companies to propose and, with federal approval, carry out operations against Cyber-Enabled Transnational Criminal Organizations under the direction, control, and legal authorities of the U.S. government.

The program covers two distinct categories of activity. The first, Cyber Surveillance Operations, covers covert intelligence gathering from computer systems, networks, telecommunications infrastructure, or embedded devices. The second, Cyber Effects Operations, goes further: manipulation, disruption, denial, degradation, or destruction of information systems or infrastructure managed through information technology.

Participating companies must enter contractual agreements with the Justice Department or Department of Homeland Security, undergo vetting for their technical capability, security and reliability, and operate under federal supervision. The memorandum also requires participating companies to maintain a bond or escrow of at least $1 million that can be forfeited for noncompliance.

Crypto Fraud Losses Reach Record Levels

The policy arrives against a backdrop of sharply rising losses from cryptocurrency-related crime. The FBI's Internet Crime Complaint Center logged 181,565 cryptocurrency-related complaints in 2025, with reported losses of $11.366 billion, a 22% jump from 2024.

The FBI attributed most of these schemes to organized criminal enterprises in Southeast Asia that rely on trafficked labor inside scam compounds in Cambodia, Laos, and Myanmar. These schemes often involve long-term social engineering tactics, where victims are lured through social media, messaging apps, or dating platforms before being directed to fraudulent investment platforms.

Crypto scams accounted for over half of the $20.877 billion in total losses reported to the IC3, with over $11.366 billion in losses described as being related to cryptocurrency. Scams targeted individuals in the 60-plus age bracket, who lost over $4.4 billion in the past year.

Patrick Witt called the move a major step against scammers exploiting crypto, and the scale of the FBI's data makes clear why Washington is under pressure to act. The FBI's findings suggest that while enforcement actions have expanded, the scale and sophistication of crypto-related fraud continue to outpace mitigation efforts.

Sources:
White House Fact Sheet: Expanding Capabilities to Combat Transnational Cyber-Enabled Crime
FBI Press Release: Cryptocurrency and AI Scams Bilk Americans of Billions
CyberScoop: Trump turns to private sector in offensive hacking operations memo