What incentive do people have to sign their name correctly on legitimate transactions then? If I plan on reporting a transaction is fraudulent, I just sign my name weird and make sure they don't have cameras? I don't understand how this helps.
What I thought was supposed to happen is you're supposed to have signed your name on the back of the card and they check that your receipt matches the card, and it's a weak form of 2FA.
It is not about being "correct" it is about being consistent. If you have 1,000 receipts with an X then it is good enough for the cc company.
The signature matching the card one is only used when the value of the transaction is high and rare enough.
i.e. not for daily groceries.
For more important manners a bank might check and tell you if your signature has drifted from the one you used before.
On the other hand they might move all your savings to a different country because of a fraudulent badly written letter. Banks are banks
What I thought was supposed to happen is you're supposed to have signed your name on the back of the card and they check that your receipt matches the card, and it's a weak form of 2FA.