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The banks here have said that if you get scammed and money has been transferred (no cryptocurrency involved), there's nothing they can do. It was a bit surprisi
by kalaksi 1y ago
The banks here have said that if you get scammed and money has been transferred (no cryptocurrency involved), there's nothing they can do. It was a bit surprising to hear since you only hear cryptocurrency transactions being irreversible.
- silisili 1y agoBanks aren't perfect, but they also aren't anonymous. If you feel wronged, you can take appropriate legal recourse. Crypto offers no such thing.
- whatsupdog 1y agoGood luck taking legal action against an off shore entity, especially when the legal fees is more than the money transferred, and the money most likely moved to three different accounts in as many countries from that first off shore account.
- theptip 1y agoYou’re right that you don’t have guaranteed recourse for foreign fraud. But at least the banks play whack-a-mole and make it somewhat expensive for criminals to set up accounts; crypto undoubtedly makes money laundering substantially easier and cheaper.
- SXX 1y agoBanks are good if you live in a functional democratic country with sane politics. If you don't then you'll easily get the bad side of it since abusing the power is not that hard.
- TechDebtDevin 1y agoHow is paypal / venmo / cashapp different?
- TeMPOraL 1y agoThe difference is, crypto makes irreversibility a fundamental part of the system, making it impossible for any party to unilaterally reverse a payment without having to first take over the entire chain. With regular fiat money and banks, such reversals are perfectly possible on a technical level. The banks are usually unwilling to do them, and an individual may not be able to force them to in practice, but it's still possible in a way it's not possible with crypto.
- emilycole0 1y ago[dead]
- lesuorac 1y ago> The banks are usually unwilling to do them, and an individual may not be able to force them to in practice, but it's still possible in a way it's not possible with crypto. Generally they're unwilling to do that because it involves losing money for them. Transfers work in a multi-step process to ensure money isn't created. You tell Bank A to transfer money to person X at Bank B. Bank A tells an intermediary bank C to move funds from Bank A's account to Bank B's account. (This step is unnecessary if either A or B are large enough to be an intermediary) Bank C lets Bank B know that it's gained funds Bank B moves funds internally from Bank C to customer X. If you want your money back and Bank C says it's already been withdrawn then somebody in A,B,C is going to take a loss. Personally I think we should have an easy way to pay in a 7d settlement or something. Who really cares if somebody sends a 7d settlement when buying a house as long as its done 7d before closing.
- TeMPOraL 1y agoRight. Still, the whole thing is plugged into society at large, including court system, so ultimately the courts have the power to force anyone in the chain to give money back and eat the loss or argue to take it from elsewhere. To the unending dismay of crypto fans, the same is true about cryptocurrency - but its design fundamentally gives the law less leverage and actual points an intervention could be made. That, plus the whole thing is very new. But that's just a transient state; this kind of immutability is not compatible with society or real life, so the only cryptocurrency-based systems that'll survive long term will be the ones that give up on the whole cryptoanarchy thing.
- latchkey 1y agoThe (dumbass) finance department in my last company was phished out of about $50k. They received an email "from another company", that we happened to do business with, that was asking to update the account information. The FD didn't do any verification cause it was over a weekend and it was 'urgent'. Basically ignored all the classic signals. The bank refused to return the funds. The concept that just because it is a bank and it must be irreversible, is totally wrong. Another very good example of this is the whole corrupt Zelle service.
- chrisweekly 1y agointerested to hear more about zelle
- ty6853 1y agoIIRC zelle is designed to be reversible for the banks but not the customers, it is the worst of both worlds.
- latchkey 1y agoZelle is effectively DNS for your ACH bank account and the address is your email or phone number. It is notoriously used by scammers because they know that it isn't reversible. Just google "zelle fraud" and go down the rabbit hole...