US Senator Elizabeth Warren has highlighted the risks of cryptocurrency scams targeting seniors in the United States, with the support of a cybersecurity expert endorsing her digital assets legislation to prevent future scams.
During a recent Senate hearing, Warren highlighted the significant increase in crypto scams targeting older citizens of the United States:
“Last year, we saw a 350% increase in crypto investment scams targeting seniors. This is the largest increase among any age group. This represents over $1 billion lost by seniors in crypto scams.”
Meanwhile, during the hearing, Steve Weisman, a recognized expert on the scams and cybersecurity described by Warren, pointed out that unlike credit card fraud which can be quickly identified, stopped and traced, Cryptography poses greater challenges when it comes to transparency.
He reiterated that with crypto, once it goes through the mixers, tracing becomes much more difficult.
“Once the information gets into the mixers, you have problems. People may have a legitimate concern about privacy, but that has nothing to do with scammers.”
Weisman expressed support for Warren’s Digital Assets Anti-Money Laundering Act, which aims to ensure that digital assets are subject to the same anti-money laundering (AML) laws as traditional fiat currency.
“Your legislation is long overdue. It’s a no-brainer,” Weisman said.
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This follows recent reports indicating a significant increase in crypto hacks and scams over the past quarter compared to the same quarter last year.
Blockchain security company Immunefi reported a 153% increase in attack incidents targeting crypto and Web3 projects from July to September 2023, compared to the corresponding period in 2022. The recent quarter saw losses of around 686 millions of dollars.
Meanwhile, Elizabeth Warren recently revealed that nine other US senators have publicly supported the Digital Assets Anti-Money Laundering Act.
Notably, Senate Homeland Security and Governmental Affairs Committee Ranking Member Gary Peters and Senate Judiciary Committee Chairman Dick Durbin are among those supporting the initiative.
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