[2014-08-13] The Government Is Trying To Explain Bitcoin to Normal People

[ganabb]

https://time.com/3103495/bitcoin-government-warning/

Bitcoin risks, the CFPB said, include hackers who steal users’ private keys—the password to your digital wallet—using viruses and other malware. Unlike banks or credit unions, in which deposits are protected by federal agencies in case of failure, bitcoin isn’t insured by any government agency. If you lose your bitcoin stash, then “you are own your own,” the CFPB warns, and “there is no other party to help you.” Some digital wallet companies promise reimbursements for fraudulent transactions, but if there’s a widespread fraud event, it would probably be hard for most of these firms to come through on that promise. So what’s a bitcoin user to do?

[Kprawn]

That is not true. Go to your bank, and try to claim your money back, when your online account was hacked.

1. First thing they will do, is to accuse you, for having bad "security" on the device, you used to access "online" services.
2. When they do not find weakness on your device, they blame the ISP and the 3 way finger pointing start, and go into a never ending circle.
3. You have to report it to the police, but they do not have skilled people to track and trace hackers. {Case closed}
4. The reserve banks, wash their hands, because it's a issue between the customer and the bank.
5. Then you sue them, and spend more on "court" proceedings, than the money, you lost and you still loose, because they can afford better lawyers.

In the end, you have to take the loss, and go on with your life.

So do not believe the shite these people are peddling, to say, you have consumer protection, when you using anything other than BTC   

It happened to me, and to some of my friends, and it's always the same story.

[No_2]

That is not true. Go to your bank, and try to claim your money back, when your online account was hacked.

1. First thing they will do, is to accuse you, for having bad "security" on the device, you used to access "online" services.
2. When they do not find weakness on your device, they blame the ISP and the 3 way finger pointing start, and go into a never ending circle.
3. You have to report it to the police, but they do not have skilled people to track and trace hackers. {Case closed}
4. The reserve banks, wash their hands, because it's a issue between the customer and the bank.
5. Then you sue them, and spend more on "court" proceedings, than the money, you lost and you still loose, because they can afford better lawyers.

In the end, you have to take the loss, and go on with your life.

So do not believe the shite these people are peddling, to say, you have consumer protection, when you using anything other than BTC   

It happened to me, and to some of my friends, and it's always the same story.

+1

[Meuh6879]

+4 (friends and familly history)

[bitbouillion]

... and try to reclaim your stolen cash from the government 

[ArticMine]

There is less risk with fiat in a bank account, since at least one could possibly sue the bank. With Bitcoin who can one sue? The real solution in both cases is to get rid of Microsoft Windows and run GNU/Linux then the Windows malware will not work.

[freedomno1]

That is not true. Go to your bank, and try to claim your money back, when your online account was hacked.

1. First thing they will do, is to accuse you, for having bad "security" on the device, you used to access "online" services.
2. When they do not find weakness on your device, they blame the ISP and the 3 way finger pointing start, and go into a never ending circle.
3. You have to report it to the police, but they do not have skilled people to track and trace hackers. {Case closed}
4. The reserve banks, wash their hands, because it's a issue between the customer and the bank.
5. Then you sue them, and spend more on "court" proceedings, than the money, you lost and you still loose, because they can afford better lawyers.

In the end, you have to take the loss, and go on with your life.

So do not believe the shite these people are peddling, to say, you have consumer protection, when you using anything other than BTC   

It happened to me, and to some of my friends, and it's always the same story.

That sounds about right pretty much a vicious circle of blame and your money is gone like the wind
In less stable countries government default, in more stable areas the same risks of hacking occur in Bitcoin and your bank account

Hmm it looks like the cycle to break the above is to go complain to consumer affairs and the gov to wrestle with the bank

In addition, because virtual currency accounts are not insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund, if a virtual currency company fails – and many have – the government will not cover the loss.

[notthematrix]

The whole idea that loses will be covert is a lie.
The first thing hat fails when the shit hits the fan is access to you bank account!
ask those in ukraine or any counrty in real trouble , sldo the switch to EMV will change all this.
if EMV will replace mag stripe all waranty is gone!
 

[No_2]

That sounds about right pretty much a vicious circle of blame and your money is gone like the wind...

Referencing what I wrote about chip and pin and why I suspect banks are keen to implement it:

TBH, I'm amazed the US doesn't do chip and pin yet.

Is it effective or good?

Chip and PIN is good for the bank: it allows them to allocate blame to the customer if a card is used without the customer's permission. Here in the UK several of my friends have had their card and PIN taken and used and in most cases the banks have refused to replace the stolen funds. There are several ways a good thief can get a user's PIN without them realising but generally a careful user can keep this secret.

Chip and PIN is has been tested in the UK for the last decade and a half and I believe parts of Europe with a plan to roll it out globally eventually. The banking industry takes ages to innovate though, the chip and PIN design has been around for at least 50 years since about the mid 1960sand still has yet to make an appearance in some developed countries. See this BBC item on it from the time:

http://www.bbc.co.uk/archive/tomorrowsworld/8012.shtml

Chip and PIN is actually quite an antiquated system that uses no form of cryptography to protect the user at the point of sale: cards can be skimmed easily as there is an unencrypted bit on the magnetic strip that tells the card reader if it's a magnetic card only or has a chip too. Meaning malicious users can replicate a card, set that bit to '0' and then sign fraudulently to make purchases. I think the rate of technology progress in the banking sector only highlights how incumbent the industry has become.