Senator Elizabeth Warren warned of cryptocurrency scams focusing on seniors throughout a U.S. Senate Particular Committee on Getting old 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 typically targets the getting old inhabitants, noting that final 12 months noticed a 350% rise in crypto funding scams focusing 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 overall 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 urged that seniors are particularly susceptible to cryptocurrency scams due to adjustments to the mind concerned in getting old, in addition to greed and the “worry of lacking out” (FOMO) that’s widespread in crypto.
Weisman urged that cryptocurrency’s anonymity is “terrific” and aids scammers. He mentioned 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 advanced to dam, not like fraud involving conventional strategies comparable 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 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 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, comparable to cryptocurrency’s position within the drug commerce, tax evasion, and terrorist financing.
