The Digital Chamber expressed its backing on September 20, 2024, for a new bipartisan bill introduced by Congressman Zachary Nunn (R-IA) that aims to combat financial fraud, including pig butchering schemes.
The legislation, titled the “Empowering Law Enforcement To Combat Financial Fraud Act,” is designed to equip law enforcement with the necessary tools to combat these intricate scams.
The Digital Chamber Supports New Rep. Zachary Nunn Bill
U.S. lawmakers Josh Gottheimer (D-NJ) and Scott Fitzgerald (R-W) spearheaded the initiative behind this proposed law, which would allocate grant funds to state, local, and tribal agencies investigating financial fraud schemes.
These schemes disproportionately impact vulnerable segments of society, and the bill is set to bolster the resources available to law enforcement agencies tasked with addressing such crimes.
“Financial fraud crimes are increasingly utilizing advanced technology to deceive Americans out of their earnings,” stated Rep. Fitzgerald. “I am honored to co-lead the Empowering Law Enforcement to Combat Financial Fraud Act, which will empower state and local law enforcement with the tools to leverage blockchain to track criminals attempting to defraud Wisconsin seniors and families.”
The proposed legislation would specifically target pig butchering schemes, a prevalent tactic employed by digital asset fraudsters to exploit their victims’ trust and increase the funds victims send to them.
According to a press release from the bipartisan group of lawmakers on September 9, even the American Association of Retired Persons (AARP) has cautioned against these types of scams.
“As the blockchain and digital asset sectors evolve, so do the methods of those exploiting these technologies for illicit purposes,” commented The Digital Chamber. “This Act appropriately addresses the need for clearer guidelines, enhanced resources, and better tools for State, local, and Tribal law enforcement agencies to combat complex financial crimes, including “pig butchering” scams.”
All Eyes On Pig Butchering Scams
A recent report from blockchain analytics firm Chainalysis underscored that pig butchering schemes have been the most profitable scam this year.
Traditional fraud tactics, such as Ponzi schemes, have taken a backseat to these and other divisive strategies, especially within the realm of digital assets.
In November 2023, Tether froze an estimated $225 million of its stablecoin after reports linked the funds to a human trafficking group in Southeast Asia.
A February 2024 study by the University of Texas at Austin revealed that pig butchering scammers have absconded with over $75 billion in cryptocurrencies since the onset of the pandemic.
With pig butchering scams on the rise, the effectiveness of this bill could significantly influence how law enforcement tackles digital asset fraud in the future.
