Re:Bitcoin trojan caught in the wild
by bradleyland on Friday June 17, 2011 @09:42AM
(#2665452)
Well said! The ability to handle fraud in this manner has a big picture effect as well.
Banks are powerful. They can do things that you and I can't. If a bank transfers money as part of a fraudulent transfer, it can reverse that transfer electronically. This reversal traverses the banking system all the way back to the entity that accepted the payment.
This system diffuses the impact of fraudulent transfers and places the ultimate responsibility on those accepting payment, rather than those holding currency. I know that sounds harsh, but the person accepting the payment probably has the best chance of detecting a fraud. Without this check & balance, there's very little incentive for merchants to verify the validity of the funds being used.
Banks are powerful. They can do things that you and I can't. If a bank transfers money as part of a fraudulent transfer, it can reverse that transfer electronically. This reversal traverses the banking system all the way back to the entity that accepted the payment.
This system diffuses the impact of fraudulent transfers and places the ultimate responsibility on those accepting payment, rather than those holding currency. I know that sounds harsh, but the person accepting the payment probably has the best chance of detecting a fraud. Without this check & balance, there's very little incentive for merchants to verify the validity of the funds being used.