A new bipartisan bill aims to significantly enhance the powers of the U.S. Secret Service to combat cybercrime associated with digital assets. This legislation, proposed by Senators Catherine Cortez Masto, Chuck Grassley, and Amy Klobuchar, comes at a critical time as the threat landscape in cyberspace continues to evolve. The focus is to strengthen the Secret Service’s authority to investigate various forms of cybercriminal activities linked to digital transactions, including money laundering and fraud.
Broader Investigative Authority
The proposed legislation extends the Secret Service’s jurisdiction to tackle transnational cybercrime more effectively. According to the bill, the agency would gain expanded capabilities to scrutinize digital asset transactions, unlicensed money transmitting businesses, and structured transitions. Senator Cortez Masto emphasized the importance of this measure, stating:
The funding of criminal activity through digital assets poses a direct threat to the security and safety of our nation. This bipartisan and bicameral bill will allow for the United States Secret Service to better investigate new forms of financial crime involving digital assets.
Additionally, the Combating Money Laundering in Cyber Crime Act of 2024, a counterpart to a January bill from nine House members, mandates a Government Accountability Report within a year. This report will evaluate law enforcement’s capacity to detect and deter money laundering activities.
History of Cybercrime Investigation
The Secret Service has a long history of combating cybercrime, having established its Cyber Investigative Section in 2004. This was one of the first federal divisions dedicated to the issue, consolidating efforts and supporting major global investigations. In 2020, the agency created the Cyber Fraud Task Forces by merging its Electronic Crimes Task Forces and Financial Crimes Task Forces to better coordinate and share expertise on financially-motivated cybercrime.
Since then, federal cyber officials have repeatedly highlighted the need for more skilled agents capable of tackling sophisticated financial cybercrimes. As a response, the Secret Service announced the relaunch of its Cyber Investigations Advisory Board earlier this year, aiming to overhaul its investigative practices and improve its capacity to fight financial cybercrime.
Senator Cortez Masto’s latest legislative effort follows her introduction of a bill last September that sought to close loopholes and enforce compliance with federal anti-money laundering and counter-terrorism financing frameworks among cryptocurrency companies. This demonstrates a sustained legislative push to address the complexities of financial crime in the digital age.
The Secret Service’s ongoing efforts and new legislative support highlight the persistent and evolving challenges in combating cybercrime. With the proposed bill, the agency is poised to receive the tools necessary to address these threats more effectively. This could lead to more comprehensive investigations and potentially deter criminal activities facilitated by digital assets.
