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Step 1: Go buy personal information about people on the dark web Step 2: Setup bank accounts in their names at neo-banks with weak KYC/AML policies Step 3: Have

Step 1: Go buy personal information about people on the dark web Step 2: Setup bank accounts in their names at neo-banks with weak KYC/AML policies Step 3: Have money sent to these accounts where the actual named owner has no idea it exists and you hold a debit card to it. The only recourse you have at that point is to shut down the accounts and hope they haven't drained it completely. And that's if everyone is willing to play ball, there are countless bureaucrats in this process that can slow or stop it because it's extra work and they feel like their job isn't on the line if they ignore the request.

rbanffy 5y ago
> neo-banks with weak KYC/AML policies It looks like banks need to be better regulated. This seems to be a solution to this and a whole lot other problems.
- nickff 5y ago
  Banks are already very strictly regulated; I am not sure how they could be better regulated. Also, many of the regulations have more to do with ensuring complete taxation than helping account holders (as the government wants its money). Do you have any specific ideas? Perhaps there should be fewer requirements, but with more accountability?
- luckylion 5y ago
  If they introduce better KYC, you pay naive people to be a "representative" for your company and tell them they get to keep 5% of any payment they forward. It's a pretty old trick. When it blows up, all you get is some naive person who says "but they even had a logo and sent me my own business cards" and a lot of money orders sent somewhere.
gowld 5y ago
It works on paleo-banks with the same KYC/AML policies
specialist 5y ago
> Go buy personal information about people on the dark web Will Real ID help with identity theft and fraud? I mean in practical terms. I'm just so ignorant about this stuff. But I'd like to know what reforms I should advocate. https://en.wikipedia.org/wiki/Real_ID_Act https://en.wikipedia.org/wiki/Real_ID_Act https://www.dhs.gov/enhanced-drivers-licenses-what-are-they https://www.dhs.gov/enhanced-drivers-licenses-what-are-they
- swiley 5y ago
  I don't think so. It doesn't look like it really improves authenticating the ID, at best it just moves things around.

rbanffy 5y ago

> neo-banks with weak KYC/AML policies It looks like banks need to be better regulated. This seems to be a solution to this and a whole lot other problems.

nickff 5y ago
Banks are already very strictly regulated; I am not sure how they could be better regulated. Also, many of the regulations have more to do with ensuring complete taxation than helping account holders (as the government wants its money). Do you have any specific ideas? Perhaps there should be fewer requirements, but with more accountability?
luckylion 5y ago
If they introduce better KYC, you pay naive people to be a "representative" for your company and tell them they get to keep 5% of any payment they forward. It's a pretty old trick. When it blows up, all you get is some naive person who says "but they even had a logo and sent me my own business cards" and a lot of money orders sent somewhere.

gowld 5y ago

It works on paleo-banks with the same KYC/AML policies

specialist 5y ago

> Go buy personal information about people on the dark web Will Real ID help with identity theft and fraud? I mean in practical terms. I'm just so ignorant about this stuff. But I'd like to know what reforms I should advocate. https://en.wikipedia.org/wiki/Real_ID_Act https://en.wikipedia.org/wiki/Real_ID_Act https://www.dhs.gov/enhanced-drivers-licenses-what-are-they https://www.dhs.gov/enhanced-drivers-licenses-what-are-they

swiley 5y ago
I don't think so. It doesn't look like it really improves authenticating the ID, at best it just moves things around.