A retired nurse in the United States was left facing a second financial crisis after losing more than $200,000 to a scammer impersonating a federal agent. Susan Bivins not only struggled to recover her retirement savings, but was later hit with an $80,000 tax bill from the Internal Revenue Service (IRS), forcing her to sell her home.
According to an investigation by The Associated Press and FRONTLINE, Bivins was persuaded to withdraw money from her retirement accounts and transfer more than $200,000 to the fraudster. She later reported the crime to the FBI and local police but said she received little assistance in recovering her money.
The situation became even more difficult when the IRS sought taxes on the retirement funds she had withdrawn. Because the money came from tax-deferred retirement accounts, the withdrawal created a tax liability even though the funds were subsequently stolen.
Unable to meet the $80,000 bill, Bivins sold her home and moved into a small one-bedroom apartment. She continues to deal with the tax burden by selling handmade quilts.
Her experience was included in an AP and FRONTLINE investigation that examined what happens to victims after online scams. The investigation interviewed 58 people across the US who collectively described losses ranging from several thousand dollars to millions. Many said that after reporting fraud, they struggled to receive meaningful assistance from authorities or financial institutions.
The problem is growing rapidly. Americans reported approximately $15.9 billion in scam losses to the Federal Trade Commission in 2025, a 25% increase from the previous year. Investigators also noted that reported figures likely underestimate the true scale of fraud because many victims never report their losses.
The investigation found that victims can face financial consequences beyond the original theft. Depending on the circumstances, they may be left with outstanding loans, bank-related expenses and tax liabilities on money that has already disappeared.
Changes to US tax rules have further complicated matters for some fraud victims. Personal losses from many common scams generally do not qualify for the same tax treatment that was previously available for certain theft-related losses. As a result, people who withdraw taxable retirement funds before losing them to scammers can potentially face a tax bill despite no longer having the money.
Recovering stolen funds can also be difficult. Banks are generally not required to reimburse customers when the customers themselves authorised a transaction after being deceived, unlike cases involving transactions that occurred without the customer’s permission. Cryptocurrency transfers can create additional obstacles because funds can move rapidly across wallets and international jurisdictions.
US lawmakers are considering several proposals aimed at strengthening protections for scam victims. One measure, the Tax Relief for Fraud Victims Act, would seek to restore tax relief for people who lose money in certain scams. Other proposals include creating a centralised system for reporting scams and requiring greater transparency around AI-generated deepfakes and synthetic audio or video.
The US government has also taken steps to target organised scam networks and recover stolen cryptocurrency, but the AP/FRONTLINE investigation found that victims continue to face significant difficulties getting their money back. At least 13 federal agencies are involved in different aspects of combating scams, raising concerns about fragmented enforcement and victim support.
Bivins’ case highlights how an online scam can have consequences that extend far beyond the initial loss. For victims who depend on retirement savings, the financial impact can affect their homes, living arrangements and long-term security — even after the scammer has disappeared.
