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Even more fundamental than national ID or PKI is incentives. If the burden of proof is clearly on the creditor, they will very quickly tighten up their anti-fra
by supertrope 5y ago
Even more fundamental than national ID or PKI is incentives. If the burden of proof is clearly on the creditor, they will very quickly tighten up their anti-fraud measures. The current equilibrium of creditors being able to burden random people with the cost of proving they're not responsible for fraudulent loans is Kafkaesque.
- supertrope 5y agoFor many years retail stores didn't care about stolen credit card information being used to buy gift cards. The banking sector ate those fraud losses. Once the payment card oligopoly shifted the liability onto merchants, retailers had to eat way more fraud. Retailers immediately took down gift card displays, rushed to upgrade to chip terminals, and when they put the displays back they stopped selling $500 cards.