Strengthening Targeting of Organized Predatory Scammers Act; STOP Scammers Act
Summary
The STOP Scammers Act mandates the Secretary of the Treasury to designate certain foreign entities engaged in fraudulent activities targeting US citizens and lawful permanent residents as "Foreign Financial Threat Organizations." This designation triggers asset freezing and subjects these organizations to penalties similar to those applied to specially designated global terrorist organizations. The Act also aims to prevent these organizations from contacting US individuals and requires regular reports to Congress on its implementation.
Expected Effects
The Act will likely lead to increased scrutiny and potential disruption of foreign entities involved in scams targeting Americans. It could also result in the seizure of assets and the return of funds to victims of fraud. The designation as a "Foreign Financial Threat Organization" carries significant legal and financial consequences.
Potential Benefits
- Increased protection for US citizens and lawful permanent residents from foreign scams.
- Potential recovery of funds for victims of fraud.
- Enhanced cybersecurity for the United States by limiting the ability of these organizations to access internet or cellular services.
- Strengthened national security by treating financial threats similarly to terrorist organizations.
- Improved international cooperation in combating transnational fraud.
Potential Disadvantages
- Potential for overreach or misidentification of organizations as "Foreign Financial Threat Organizations."
- Possible chilling effect on legitimate international business activities.
- Increased administrative burden on the Department of the Treasury.
- Risk of retaliatory actions from foreign entities.
- Potential for legal challenges to the designations.
Constitutional Alignment
The Act appears to align with the Constitution's broad goals of providing for the common defense and promoting the general welfare (Preamble). Congress has the power to regulate commerce with foreign nations (Article I, Section 8, Clause 3). The Act's provisions for asset freezing and restrictions on communication could raise concerns related to due process (Fifth Amendment) and freedom of speech (First Amendment), but these are likely to be balanced against the government's interest in protecting its citizens from fraud and national security threats.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).