tl;dr
U.S. lawmakers have introduced the bipartisan GUARD Act to combat financial fraud targeting older citizens, especially "pig butchering" scams conducted online. The legislation supports law enforcement use of blockchain technology to trace and investigate these scams. Introduced by Republicans Zach N...
U.S. lawmakers have introduced the bipartisan GUARD Act to tackle financial scams targeting older adults, particularly the rising “pig butchering” scams conducted online. This legislation aims to empower law enforcement by enabling the use of blockchain technology for tracing and investigating such frauds. Sponsored by Republicans Zach Nunn and Scott Fitzgerald along with Democrat Josh Gottheimer, the bill proposes federal grants and federal assistance to enhance state and local agencies' capabilities with blockchain tracing tools.
Financial fraud losses in the U.S. are escalating sharply, disproportionately impacting older adults. For example, in 2023, Iowa alone reported over $42.6 million in financial fraud losses, with older individuals often suffering median losses significantly higher than the general population. “Pig butchering” scams, where fraudsters build deceptive relationships to coax more investment from victims, accounted for 33.2% of all digital asset-related scam revenue in 2024.
Blockchain’s transparency and permanence provide a critical advantage to law enforcement. Successful actions, such as the Department of Justice freezing $225 million linked to an international human trafficking syndicate and Interpol’s arrest of 3,500 cybercriminals resulting in $300 million in seizures, demonstrate its effectiveness.
The GUARD Act garners broad support from organizations including AARP, law enforcement groups, and financial associations. It seeks to equip authorities with modern, 21st-century tools necessary to combat sophisticated scams that exploit social media, emails, and texts. Representatives emphasize that leveraging cutting-edge blockchain technologies will better protect seniors and vulnerable populations from financial fraud, ensuring stronger justice and deterrence across the nation.