Senator Elizabeth Warren warned of cryptocurrency scams concentrating 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 customers in 2022. She added that this fraud primarily targets customers.
She emphasised that such fraud typically targets the getting old inhabitants, noting that final yr noticed a 350% rise in crypto funding scams concentrating on seniors. Warren mentioned that this was the most important enhance for any age group. She mentioned that this amounted to over $1 billion in losses for seniors and mentioned that the full is “virtually absolutely an underestimate.”
Warren additionally interviewed an skilled witness, Steve Weisman, a lawyer and Senior Lecturer at Bentley College and the principle editor for Scamicide.com.
In response to Warren’s questions, Weisman prompt that seniors are particularly susceptible to cryptocurrency scams due to adjustments to the mind concerned in getting old, in addition to greed and the “concern of lacking out” (FOMO) that’s widespread in crypto.
Weisman prompt that cryptocurrency’s anonymity is “terrific” and aids scammers. He mentioned that though particular assaults have been traced, crypto that’s moved by means of coin mixers is difficult to hint. He added that fraudulent crypto transactions are complicated to dam, not like fraud involving conventional strategies equivalent 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 help.
Amongst different issues. the regulation would prolong know-your-customer (KYC) necessities to further members of the blockchain trade, would prolong reporting necessities to some transactions involving greater than $10,000 in digital property, 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, equivalent to cryptocurrency’s function within the drug commerce, tax evasion, and terrorist financing.
