Justice Dept's $12B Return to Victims Masks Deeper Flaws

When the Department of Justice announced it had returned over $12 billion to crime victims through its Asset Forfeiture Program, the number felt monumental. Families shattered by fraud, survivors of human trafficking, and small businesses gutted by deceit received a lifeline. In 2024 alone, $735 million flowed back to those harmed by scams ranging from cryptocurrency theft to government imposter schemes. It’s a figure that demands attention, a testament to what’s possible when resources align to right wrongs.

Yet, beneath the headline, a nagging truth persists. Money, even in the billions, doesn’t erase trauma. It doesn’t rebuild trust for an elderly woman who wired her savings to a fake Microsoft support scam, nor does it restore dignity to a nail technician coerced into forced labor. The Justice Department’s efforts, while commendable, expose a deeper flaw in how we approach justice. Focusing on dollars seized from criminals risks overshadowing the human toll of their crimes.

This isn’t about dismissing the program’s wins. Returning $4.3 billion to 40,930 victims of Bernie Madoff’s Ponzi scheme, for instance, brought nearly 94% recovery for those defrauded. That’s no small feat. But justice demands more than balancing ledgers. It requires a system that prioritizes healing over headlines, equity over efficiency.

Consider the elderly, a group relentlessly targeted by scammers. In 2023, Americans over 60 lost $3.4 billion to fraud, with losses per case averaging $34,000. These aren’t just numbers; they’re stories of trust betrayed. A 90-year-old losing $20,000 to a tech support scam isn’t just out money, she’s grappling with shame and isolation. The Justice Department’s return of $328,500 to one such victim in 2024 was a victory, but it’s a drop in an ocean of exploitation. Scammers prey on cognitive decline and loneliness, vulnerabilities our system too often ignores.

Then there’s human trafficking, where the harm cuts even deeper. A survivor in North Carolina received $52,000 and a bracelet held as collateral by her abuser, a nail salon owner convicted of forced labor. That restitution matters, but it can’t undo years of assault and coercion. These cases reveal a pattern: compensation helps, but it’s not healing. Victims need counseling, legal protections, and community support, resources our justice system rarely prioritizes.

Business email compromise scams, which cost companies $55 billion by 2024, hit small businesses and public institutions hardest. A city’s Board of Education lost $5.9 million to a fake bus company email, with only $1.2 million recovered. The shortfall isn’t just financial; it’s classrooms without supplies, communities stretched thin. These scams thrive in a digital world where oversight lags behind innovation, and victims bear the burden.

Some argue the Asset Forfeiture Program’s strength lies in its punitive edge, stripping criminals of their gains. They point to cases like the $6.4 million returned to the IRS from a tax fraud scheme, proof that hitting wrongdoers where it hurts works. But this perspective misses the mark. Punishment alone doesn’t deter sophisticated criminals, who adapt faster than our laws. Cryptocurrency scams and deepfake-driven fraud surged in 2024, exploiting gaps in regulation while victims waited for scraps of recovery.

The program’s focus on forfeiture also risks inequity. Wealthier victims, like those in the Madoff case, often see higher recovery rates due to larger, traceable assets. Smaller cases, like the elderly woman scammed out of $550,000, rely on chance, quick reporting, and agency coordination to see any return. This disparity isn’t justice; it’s a lottery. A system that truly serves victims would invest in prevention, education, and uniform recovery processes, not just asset seizures.

Historical efforts, like the Madoff Victim Fund started in 2013, show what’s possible when equity guides policy. Its 'rising tide' approach ensured all victims, from small investors to institutions, recovered at similar rates. Yet, even that success story took over a decade. Scaling that model demands more than forfeiture; it requires funding for victim support services and stronger digital protections to stop scams before they start.

The Justice Department’s work isn’t without merit. Returning $420 million to 175,000 victims of Western Union’s fraud schemes shows commitment. But commitment isn’t enough when the system leans on punishment over prevention. We need a justice framework that invests in people, not just penalties. That means bolstering programs to educate seniors on scam tactics, expanding mental health support for trafficking survivors, and tightening regulations on cryptocurrency and instant payment systems where fraud festers.

Victims deserve more than a check; they deserve a system that fights for them before the crime happens. The $12 billion returned is a start, but it’s not the finish line. Justice demands we move beyond seizing assets to building a world where fewer people become victims in the first place. Anything less sells short the promise of equity and healing.