Ask HN: Fraud is a business model, Do we fix it?

[masonwashere]

Online Payment Card Fraud (VISA/MC/AMEX/DSC)

Identity Theft Fraud

Can these types of fraud be stopped ? Sure!

Should they be ? Well, that'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.

Do you think the loss of jobs is worth it?

[1] carders are the users of stolen payment/identity data

[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.

[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'?

[taprun]

Adjust the laws so that the following formula is true:

perceived_chance_of_getting_caught * perceived_penalty > perceived_benefits

[CalChris]

Fraud is not a business model.

[masonwashere → CalChris]

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