Digital Chamber Supports New Bill Targeting Pig Butchering Scams
The Digital Chamber today announced its support of the “Empowering Law Enforcement To Combat Financial Fraud Act,” a new bipartisan bill introduced by Congressman Zachary Nunn (R-IA) targeting financial fraud, including financial scams known as pig butchering schemes.
Bipartisan Effort to Combat Financial Fraud
US Representatives Josh Gottheimer, D-NJ, and Scott Fitzgerald, R-WI, lead the charge in a bi-partisan effort to give state, local, and tribal law enforcement the resources and tools necessary to investigate and take down these sophisticated scams. The bill would provide grant funding to help those agencies combat financial fraud.
Targeting Vulnerable Populations
The proposed legislation aims to protect vulnerable populations frequently targeted by such scams. “Financial fraud crimes increasingly involve sophisticated technology to scam Americans out of their hard-earned dollars”, said Rep. Fitzgerald. “This Act will give law enforcement the resources they need to utilize blockchain to track criminals who attempt to defraud Wisconsin seniors and families”.
Pig Butchering Schemes
Schemes on pig butchering are among the main focus of the bill. The scam mainly involves fraudsters gaining people’s trust to encourage them to invest their money, while it is later stolen. According to the late in the week press release by the lawmakers, the American Association of Retired Persons otherwise AARP has issued warnings regarding these scams.
Growing Concern Over Digital Asset Scams
A report from blockchain analytics firm Chainalysis stated that pig butchering schemes have emerged this year as the most lucrative scam, surpassing more traditional fraud methods such as Ponzi schemes. Success of the new bill may be just what law enforcement needs to modernize its fight against digital asset fraud.
A Call for Increased Law Enforcement Resources
As blockchain and digital asset industries continue to develop, so too do the methods of those utilizing these technologies to further their illicit activities,” Digital Chamber said. “This Act serves the growing need for clearer guidance and improved tools for State, local, and Tribal law enforcement agencies to investigate sophisticated financial crimes.”
The Impact of Successful Legislation
Success of the bill may therefore have a pivotal role in shaping how law enforcement handles digital asset fraud for the next couple of years, as pig butchering scams begin to rise. Better resources and guidelines are given in this bill to empower law enforcement to combat such complex financial crimes with vigor and effectiveness and help protect particularly vulnerable populations.
