Patrick McKenzie+ Your Authors @patio11 I work for the Internet, at @stripe, mostly on accelerating startups. Opinions here are my own. Sep. 09, 2020 1 min read + Your Authors

I am not terribly surprised and also think that in some ways this article counterintuitively shows the process working correctly and as designed.

Elaboration follows.

A lot of processes in finance have to do fraud checks, and historically they’re mostly front-ended.

There is a false positive risk for this and a far greater impact on conversions; many legitimate small businesses can’t instantly paperwork “I am a legitimate small business.”

It was a reasonable policy priority of the US to distribute this relief extremely widely, and so most of the fraud checking happened post-approval.

Which will fairly readily discover an attempt to steal from the government.

Which you should not do as a bank employee.

I think the base rate of bank employees who would steal is pretty low, but with hundreds of thousands of front-line employees and a job which has been progressively deskilled, would put it as non-zero.

Which is, after all, why banks check.

This is also why, in one’s mandatory compliance training, you’ll have a moment which rhymes with “We trust you to follow the law, and to understand that we exhaustively record everything. Others who heard a warning like this, and did not heed it, are in prison. Don’t be stupid.”

You can follow @patio11.


Tip: mention @threader_app on a Twitter thread with the keyword “compile” to get a link to it.

Enjoy Threader? Sign up.

Since you’re here...

... we’re asking visitors like you to make a contribution to support this independent project. In these uncertain times, access to information is vital. Threader gets 1,000,000+ visits a month and our iOS Twitter client was featured as an App of the Day by Apple. Your financial support will help two developers to keep working on this app. Everyone’s contribution, big or small, is so valuable. Support Threader by becoming premium or by donating on PayPal. Thank you.

Follow Threader