Even more important than the legal context, is the business case. Fraud for modern financial institutions is like deaths caused by self-driving cars. + It is a

Even more important than the legal context, is the business case. Fraud for modern financial institutions is like deaths caused by self-driving cars. + It is a trade-off between costs of the fraud detection system versus money lost through fraud. + It is a trade-off between time it takes to do proper fraud detection versus losses by slower payment processes. I don't know about papers in this direction. Would be a fun read. A bit like the effect of voluntary disclosure of evaded taxes like in this working paper: https://www.econstor.eu/bitstream/10419/110841/1/cesifo_wp5349.pdf https://www.econstor.eu/bitstream/10419/110841/1/cesifo_wp53.... Is the net effect beneficial or does it lead to more tax evasion?