Senator Elizabeth Warren warned of cryptocurrency scams concentrating on seniors throughout a U.S. Senate Particular Committee on Getting older on Nov. 16.
There, Warren cited statistics from the FBI indicating that crypto fraud stole $2.5 billion from customers in 2022. She added that this fraud primarily targets customers.
She emphasised that such fraud typically targets the ageing inhabitants, noting that final 12 months noticed a 350% rise in crypto funding scams concentrating on seniors. Warren stated that this was the most important improve for any age group. She stated that this amounted to over $1 billion in losses for seniors and stated that the whole is “nearly absolutely 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 weak to cryptocurrency scams due to modifications to the mind concerned in ageing, in addition to greed and the “worry of lacking out” (FOMO) that’s widespread in crypto.
Weisman instructed that cryptocurrency’s anonymity is “terrific” and aids scammers. He stated that though particular assaults have been traced, crypto that’s moved via coin mixers is difficult to hint. He added that fraudulent crypto transactions are complicated to dam, in contrast to fraud involving conventional strategies akin to 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 assist.
Amongst different issues. the regulation would prolong know-your-customer (KYC) necessities to extra members of the blockchain trade, 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 numerous different points, akin to cryptocurrency’s position within the drug commerce, tax evasion, and terrorist financing.