2013-07-29 Why is bitcoin so susceptible to fraud?

[patricktim]

http://www.coindesk.com/what-makes-bitcoin-so-fraud-prone/

Bitcoin Savings and Trust

All of these aspects of Bitcoin seem to bring to it a fraudulent, secretive element. It’s harder to trace bitcoins in smaller amounts, so any scammer looking to make some cash from bitcoin would do well to solicit payments for an “investment” similar to a Ponzi scheme, where the initial investors are paid proceeds that come from the successive investors.

[gweedo]

This is a bad title. It isn't any faults in bitcoin, it more of human errors choosing where to put your money. Kinda disappointed I highly respect coindesk as well.

[marcus_of_augustus]

Any there any quantifiable statistical studies to say that fraud with bitcoins is any more or less prevalent than with, say, US$ or Eur?

The sensationalism surrounding some guy on the internet called 'pirate' disappearing with the coinz makes great headlines ... but the Madoff ponzi took upwards of 18,000 million USDOLLARS ... the scale of US Federal Reserve Note fraud alone must be huge (although less eagerly reported perhaps?)

Are bitcoins really any more 'susceptible' to fraud? Mostly it seems like a lot of anecdotal hoopla but until I see some comparative facts, it's just more headline salting, link-baiting.

[Inedible]

Bitcoin doesn't suffer from fraud.

People's greed causes them to take greater risks. That's what results in fraud.

Doesn't matter the currency - it's just simple human greed.

You might as well ask "Why is handing over cash to a stranger whom you can't identify nor track down, more susceptible to fraud than spending that same cash in a supermarket?"

[prophetx]

lol nice link bait title...

[aigeezer]

lol nice link bait title...

Indeed. Is BTC still beating its spouse?

[J603]

I don't see how Bitcoins are any more susceptible to fraud than other systems. Maybe the reason that debit and credit cards don't see as much fraud is because people are more cautious with them? But that's human error, not an inherent flaw of bitcoins.

[westkybitcoins]

Maybe the reason that debit and credit cards don't see as much fraud is because people are more cautious with them?

Actually those cards see a great deal of fraud. Just ask anyone who deals with online orders for a decent-sized company. Part of the reason they have as much fraud as they do is because people are lax in their use and/or storage, because they know they can just perform a chargeback, or can call up their middleman and (often, not always) have him take care of their problem.

Of course, all of these extra services must be paid for too, whether the cost is upfront or hidden.