Senator Elizabeth Warren warned of cryptocurrency scams focusing on seniors throughout a U.S. Senate Particular Committee on Growing older on Nov. 16.
There, Warren cited statistics from the FBI indicating that crypto fraud stole $2.5 billion from shoppers in 2022. She added that this fraud primarily targets shoppers.
She emphasised that such fraud usually targets the getting older inhabitants, noting that final yr noticed a 350% rise in crypto funding scams focusing on seniors. Warren mentioned that this was the biggest improve for any age group. She mentioned that this amounted to over $1 billion in losses for seniors and mentioned that the overall is “nearly certainly an underestimate.”
Warren additionally interviewed an professional witness, Steve Weisman, a lawyer and Senior Lecturer at Bentley College and the primary editor for Scamicide.com.
In response to Warren’s questions, Weisman instructed that seniors are particularly susceptible to cryptocurrency scams due to modifications to the mind concerned in getting older, in addition to greed and the “concern of lacking out” (FOMO) that’s frequent in crypto.
Weisman instructed that cryptocurrency’s anonymity is “terrific” and aids scammers. He mentioned that though particular assaults have been traced, crypto that’s moved by way of coin mixers is difficult to hint. He added that fraudulent crypto transactions are complicated to dam, in contrast to fraud involving conventional strategies reminiscent of bank cards.
Weisman endorses Warren laws
Lastly, Weisman endorsed Warren’s proposed laws, calling it “lengthy overdue” and “one thing that completely would assist immeasurably.”
The laws in query is Warren’s Digital Asset Anti-Cash Laundering Act, which was reintroduced in July 2023 and has since gained additional help.
Amongst different issues. the legislation would prolong know-your-customer (KYC) necessities to further members of the blockchain business, would prolong reporting necessities to some transactions involving greater than $10,000 in digital belongings, and would introduce record-keeping necessities round “unhosted” or self-custodial wallets.
Warren is well-known for her harsh anti-cryptocurrency stance. She has additionally highlighted varied different points, reminiscent of cryptocurrency’s function within the drug commerce, tax evasion, and terrorist financing.