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There is a reason why such kinds of fraud are practically nonexistent in some other countries but are prevalent in the US. Alas, nearly every problem in the US
by Aspos 4y ago
There is a reason why such kinds of fraud are practically nonexistent in some other countries but are prevalent in the US.
Alas, nearly every problem in the US stems from politics.
A problem which could have been solved easily will keep being a problem for another decade.
Regulators could have solved the problem at its root and make the scams impossible, but no, they would rather shoot the messenger and force money transfer service to do government's job. At the expense of everyone else.
- Schiendelman 4y agoIt’s not the regulators themselves, it’s the politicians stopping the professionals from doing their jobs.
- Aspos 4y agoRegulators are hired by and largely follow directions set by politicians, so ultimately it is the fault of politicians in any case. I trust they finally will do the right thing. After having tried everything else of course.
- damowangcy 4y agoThe problem is much complex than that. Coming up regulations and policies for the whole country isn't as simple and easy as it look. It's just like dealing with many differnt large codebases that has multiple language, is managed by multiple different departments and teams. The same thing happened in Big Tech. Bugs are usually not fixed until they become a critical issue, not because they can't be, the solution is either too simple and not worth it (allocating resource to it become negative return because it's not aligned with the companies goal or KPI, so any second you spent on it, is like you're doing it in your free time, no one in the company will appreciate the effort) OR it's too complicated and there's no easy way out without some party compromising. In the end, a bug or something that could actually improve UX, is simply dismissed because how you felt is less important than the data and figures.
- MBCook 4y agoWhat regulations would have solved this problem? I think making transferring money much faster/easier instead of the current ACH system would help. But I’m assuming you’re thinking of other things.
- ravel-bar-foo 4y agoGovernment could provide a national photo ID and develop standards for its secure use as part of regulating interstate commerce. As it stands the US has know your customer laws but allows businesses to initiate lines of credit to people without actual proof of identity.
- ac29 4y agoI have a national photo ID, its called a passport. There are also rules for federally compliant state ID cards (Real ID). Not sure the legality on requiring this sort of ID for financial transactions though.
- Aspos 4y agoMany kinds of fraud mentioned in this post and the original article hinge on the fact that fraudsters can easily withdraw the money from the destination account. Just close this loophole and a bunch of fraud schemes will go obsolete. Require physical presence in the bank with machine readable biometrics passport for account opening (just like everywhere else) and boom, half the fraud schemes are gone. US forced all other countries in this world to require physical presence in the bank (great initiative, btw), but made an exception to themselves. Require machine-readable passport with biometrics for large cash withdrawals (just like everywhere else). Create a centralized, machine-readable, PKI-enabled proper identification infrastructure (just like everywhere else) instead of painted plastic which they call driver licenses, create a centralized, unified, secure registry of all people instead of using SSN and boom, the rest of fraud schemes become useless. Just start with this, easy to implement, simple solutions which will pay for themselves in a few years. No need to invent a bicycle, numerous countries went this way long time ago, there are no unknowns on this path. Alas, again, politics.
- deleted 4y ago[deleted]