Senator Elizabeth Warren warned about cryptocurrency scams targeting seniors during a special committee on aging in the US Senate on November 16.
There, Warren cited FBI statistics showing that crypto fraud will steal $2.5 billion from consumers by 2022. She added that this fraud mainly targets consumers.
She highlighted that such fraud often targets the aging population, noting that last year saw a 350% increase in crypto investment scams targeting seniors. Warren said this was the largest increase for any age group. She said this amounts to more than $1 billion in losses for seniors and said the total is “almost certainly an underestimate.”
Warren also interviewed an expert witness, Steve Weisman, an attorney and senior lecturer at Bentley University and the editor-in-chief of Scamicide.com.
In response to Warren’s questions, Weisman suggested that seniors are particularly vulnerable to cryptocurrency scams due to brain changes involved with aging, as well as greed and the “fear of missing out” (FOMO) that is common with crypto .
Weisman suggested that the anonymity of cryptocurrency is “great” and helps scammers. He said that while specific attacks have been traced, crypto moved through coin mixers is challenging to trace. He added that fraudulent crypto transactions are difficult to block, unlike fraud involving traditional methods such as credit cards.
Weisman endorses the Warren legislation
Finally, Weisman endorsed Warren’s proposed legislation, calling it “long overdue” and “something that would help absolutely 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 would expand know-your-customer (KYC) requirements to additional members of the blockchain industry, expand reporting requirements to some transactions involving more than $10,000 in digital assets, and would require record keeping introduce around ‘non-hosted’ or self-hosted custodial wallets.
Warren is known for her tough anti-cryptocurrency stance. She has also highlighted several other issues such as the role of cryptocurrency in drug trafficking, tax evasion and terrorist financing.