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It seems that without regulation and legislation, if left to its own devices, the banking industry settles in a terrible equilibrium where you end up using cheq

by orf 7y ago

It seems that without regulation and legislation, if left to its own devices, the banking industry settles in a terrible equilibrium where you end up using cheques and signing for card transactions in 2020. This extends deeper into the technology that underpins the banks. The USA has a _ridiculous_ amount of banking fraud compared to Europe, more than an order of magnitude higher for some types. So, say what you want about government overreach but Europe has legislated lower fraud rates, better technology and even a banking API for interoperability. Not to mention fostering a lot of new fintech startups and challenger banks.

nerdkid93 7y ago
Do you have a source for this "_ridiculous_ amount of banking fraud"? I have seen stats around credit cards that show higher fraud now compared to Europe, but that's because we were late to the chipped credit card game. To be fair, until France switched to chipped credit cards, they had higher levels of fraud. Source: https://youtu.be/2IksSNiEo2g https://youtu.be/2IksSNiEo2g
- orf 7y ago
  The one that comes to mind is the federal reserve report. https://www.federalreserve.gov/publications/files/changes-in-us-payments-fraud-from-2012-to-2016-20181016.pdf https://www.federalreserve.gov/publications/files/changes-in... Tl;dr For reference, according to the last ECB report in the EU the total value of fraudulent transactions from cards issued by SEPA countries was 0.041% of the total value of transactions (€1.8 billion - That's over 5x less fraud). Only 19% of that was point of sale fraud $3.6 billion card fraud in the US is point of sale - 10x more than the €342 million point of sale EU fraud. Overall there is $2.62 billion of counterfeit card fraud, $3.46 billion of "Fraudulent use of account number" (whatever that is), $810 million "lost or stolen card" fraud (not an issue with chip and pin), and $360 million "fraudulent application" fraud.

by orf 7y ago

nerdkid93 7y ago

Do you have a source for this "_ridiculous_ amount of banking fraud"? I have seen stats around credit cards that show higher fraud now compared to Europe, but that's because we were late to the chipped credit card game. To be fair, until France switched to chipped credit cards, they had higher levels of fraud. Source: https://youtu.be/2IksSNiEo2g https://youtu.be/2IksSNiEo2g

orf 7y ago
The one that comes to mind is the federal reserve report. https://www.federalreserve.gov/publications/files/changes-in-us-payments-fraud-from-2012-to-2016-20181016.pdf https://www.federalreserve.gov/publications/files/changes-in... Tl;dr For reference, according to the last ECB report in the EU the total value of fraudulent transactions from cards issued by SEPA countries was 0.041% of the total value of transactions (€1.8 billion - That's over 5x less fraud). Only 19% of that was point of sale fraud $3.6 billion card fraud in the US is point of sale - 10x more than the €342 million point of sale EU fraud. Overall there is $2.62 billion of counterfeit card fraud, $3.46 billion of "Fraudulent use of account number" (whatever that is), $810 million "lost or stolen card" fraud (not an issue with chip and pin), and $360 million "fraudulent application" fraud.