At Hearing, Senator Warren Highlights Dangers of Crypto Scams for Seniors, Need for Legislation
Hearing
"Thank you and thank you Mr. Chairman and Ranking Member Braun for holding this hearing. Thank you all for being here -- it's a really important topic.
Crypto is a favorite for those who are looking to defraud consumers. According to the FBI, in 2022, crypto scams were the leading cause of investment fraud in the United States. Using crypto, fraudsters stole a record $2.5 billion from consumers.
But crypto fraud isn't hitting all consumers equally. Last year, we saw a 350% increase in crypto investment scams targeting seniors. That is the biggest spike among all age groups. That added up to more than $1 billion that seniors lost in crypto scams. And because many victims don't report their experiences -- as some of you have noted -- out of shame or fear, that $1 billion figure is almost surely an underestimate.
Mr. Weisman, you're a nationally recognized expert on scams and cybersecurity. Why are older Americans particularly vulnerable to crypto scams?"
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"Wow, well I really appreciate your work on this. As you said, crypto is used for all types of scams. Scammers claim to have embarrassing information about someone they'll reveal unless the person forks over a crypto ransom. Scammers pose as friends and loved ones to encourage people to invest their life savings so long as the payment is in crypto. We now understand that scammers even set up fake investment platforms to trick people into buying crypto that, of course, they will never be able to get their money out of. I'm sorry -- go ahead Mr. Weisman."
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"Right. Well, talk for just a second -- why crypto? Why's it happening through crypto rather than, say, your bank account or some other transaction account?"
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"It is the new, shiny object. Anything else about crypto? The anonymity?"
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"Right. As I understand it, it's fast so the money is gone."
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"Yeah, and can't. I think Americans are sick and tired of these crypto crimes, and it's long past time that we get some regulation in place to deal with this. That's why Senator Roger Marshall and I have introduced our bipartisan Digital Asset Anti-Money Laundering Act. This bill has the support of 14 other Senators -- both Democrats and Republicans -- and the Chair of our Committee here. It's endorsed by the AARP. It would make it easier for financial regulators to track suspicious crypto activity and shut down scammers.
So I know I'm over time. Let's do this as a yes or no. Mr. Weisman, would crypto legislation like ours help cut down on crypto scams?"
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"I take that as a compliment."
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"Good. Thank you very much. I appreciate it. We have no time to waste on this. These scams are happening every day. Thank you. Thank you, Mr. Chairman."
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