alt Hacker NewsWhatever is needed to prevent fraud perpetuated on their platforms.
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The optimal amount of fraud is non-zero.
This statement is obvious to anyone who has any experience dealing with fraud, but shocking if you haven’t thought much about it.
It’s actually impossible to completely prevent fraud on a platform because there are so many variations of fraud that can’t be prevented up front.
They could demand in-person DNA samples to open an account and there would still be some fraud.
Say goodbye to being able to pay for anything by credit card unless accompanied by valid state ID, passport. and iris scan.
They would probably have to send out an agent to your house to live with you and watch you make every transaction to ensure it’s legitimate.
And, even then, you might lie to the agent or maybe strike up a deal or something so… even that wouldn’t work.
The ideal number of fraud is not zero, if it was zero we would either be living in a dystopian novel or not using the service at all.
>Whatever is needed
Someone made a fake account -> we need "Whatever is needed" to make creating fake accounts harder is exactly the wrong way of thinking about it. It's the same kneejerk reaction that got us PATRIOT act and TSA after 9/11.
https://www.bitsaboutmoney.com/archive/optimal-amount-of-fra...
Or if you're more swayed by social justice, all these onerous checks also makes it harder for "unbanked"/"underbanked" people access to the financial system, which has real harms for them.