
Ask HN: Fraud is a business model, Do we fix it? - masonwashere
Online Payment Card Fraud (VISA&#x2F;MC&#x2F;AMEX&#x2F;DSC)<p>Identity Theft Fraud<p>Can these types of fraud be stopped ? 
Sure!<p>Should they be ? 
Well, that&#x27;s a good question. Fraud has become so widespread that companies are now willing to pay for fraud protection. We let it become so bad that fixing the problem will cause a disaster, thousands of people who once worked to reduce these types of fraud will have no purpose and thus no job. However, these carders[1] are becoming very aggressive, businesses are losing loads of money, and innovation is hurting in the payments space.<p>Do you think the loss of jobs is worth it?<p>[1] carders are the users of stolen payment&#x2F;identity data
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LarryMade2
People do these things because the rewards can outweigh the risk, either by
skill or favorable circumstance.

To change that you have to make it where the rewards are not worth it risk.
this is by increasing difficulty and closing those favorable circumstances.

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zhte415
Flagged because this seems to be some idle threat.

To 'protect jobs' fraud detection is a bad thing. So fraud prevention should
be reduced to encourage 'innovation'?

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taprun
Adjust the laws so that the following formula is true:

perceived_chance_of_getting_caught * perceived_penalty > perceived_benefits

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CalChris
Fraud is not a business model.

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masonwashere
By definition, A business model is the way in which a company generates
revenue and makes a profit from company operations[1].

Fraud is definitely a business model for companies such as LifeLock, Signifyd,
etc. These companies only exist because of the fraud that exists today.

[1][http://www.investopedia.com/terms/b/businessmodel.asp](http://www.investopedia.com/terms/b/businessmodel.asp)

