On Nov. 16, Senator Elizabeth Warren warned before the U.S. Senate Special Committee on Aging about the potential for cryptocurrency scams targeting seniors.

There, Warren cited FBI statistics indicating that cryptocurrency fraud stole $2.5 billion from consumers in 2022. She added that this fraud primarily targets consumers.

She stressed that such fraud often targets the elderly population, noting that cryptocurrency investment scams targeting seniors increased by 350% last year. Warren said this was the largest increase of any age group. She said this equated to more than $1 billion in losses among seniors, saying the total was "almost certainly an underestimate."

Warren also interviewed expert witness Steve Weisman, an attorney, senior lecturer at Bentley University, and editor-in-chief of Scamicide.com.

In response to Warren’s question, Weisman said older adults are particularly vulnerable to cryptocurrency scams because of changes in the brain caused by aging, as well as the greed and “fear of missing out” (FOMO) that are common in cryptocurrencies.

Weisman said the anonymity of cryptocurrency is "fantastic" and helps scammers. He said that while specific attacks have been traced, cryptocurrency moved through mixers is difficult to track. He added that unlike fraud involving traditional methods such as credit cards, fraudulent crypto transactions are difficult to stop.

Weisman supports Warren legislation

Finally, Weisman endorsed Warren's proposed legislation, calling it "long overdue" and "definitely going to help immeasurably."

The legislation in question is Warren’s Digital Asset Anti-Money Laundering Act, which was reintroduced in July 2023 and has since gained further support.

Among other things, the law will extend know-your-customer (KYC) requirements to other members of the blockchain industry, extend reporting requirements to certain transactions involving more than $10,000 in digital assets, and will introduce recordkeeping requirements around “non-custodial,” or self-custodial, wallets.

Warren is known for her harsh anti-cryptocurrency stance. She has also highlighted various other issues, such as the role of cryptocurrencies in drug trafficking, tax evasion and terrorist financing.

Elizabeth Warren's post highlights surge in cryptocurrency scams targeting seniors and supports legislation for new protections. #加密诈骗  #保护立法