Fraud, Actions and Consequences: Exploring New Millennium "Values"
The other day, Mrs. Denmarkguy learned that her PayPal account had been compromised... most likely as a result of dubious security protocols on some third party web site where she'd purchased something.
As a result, some $1200 in fraudulent charges were put on her account, before things could be frozen.
Stupid Crooks!
Last geranium of the season
I suppose it says something about crooks these days that almost half that amount was charged at WalMart.com. WAL-MART??? Why aren't you out there buying gold and silver or something else with intrinsic value... if I were a crook, I would....
Oh, wait.
I forgot... crooks are STUPID, and that's why crooks are crooks and I am not a crook.
But that's not my point here.
Meanwhile, at the Fraud Department
Mrs. Denmarkguy was subsequently on the phone with PayPal for a couple of hours, and as part of talking to a very polite and responsive CSR in their fraud department, they eventually reached the part of the conversation in which Mrs. Denmarkguy asks "So you're going to file fraud charges, then?":
Japanese maple leaves and water droplets
"No ma'am."
Wait.. what?
"You're NOT going to file fraud charges?"
"No, it'll just get written off. But YOU are welcome to file fraud charges with your local police department."
I won't go into the remainder of the discussion that followed; I'm just interested in the greater societal implications.
Ultimately, the "injured party" is PayPal, because their anti-fraud policy covers this sort of thing-- the fraudulent charges were credited back to my wife's account. So now we have a situation where the non-injured party can file charges, but the actual loser chooses not to.
Let's examine that, for a moment.
THEIR Actions, Someone ELSE's Consequences?
I was raised with the fundamental life value that "Choices have consequences."
Calendula
I also had a lot of freedom to do whatever I wanted... but if you piss on an electric fence, you don't get to whine about the unpleasant consequences. You took the action, you bear the consequence.
Now we have this giant company that faces fraud to the tune of $1200 and they will not even attempt to pursue the matter.
Now the flip answer is "well, they can afford it!" but for those of us who live in the real world, we're perfectly aware that "written off" is not actually a loss to the company, but a loss to the end consumer.
How so?
That $1200... and a bunch of other fraud loss charges LIKE that will be apportioned out to customers with a nice letter that reads something like "Effective March 1st, your monthly maintenance fees will increase from $7 to $9, have a nice day-- your business is valuable to us!"
The cost of the fraud is indirectly borne by the consumer, while the company continues to make $0.69 cents per share in profits, next quarter.
Whereas I find that pretty disgusting-- and we all have good reasons to be outraged-- I still haven't gotten entirely to the core point:
By applying this metric, we are building and reinforcing a society in which FRAUD HAS NO CONSEQUENCES. At least not "petty" fraud.
Little Individuals vs. Large Corporations
There's also an inherent hypocrisy-- or paradox-- inherent in this situation in the sense that someone can defraud a credit card company to the tune of $1200 without great risk of consequences, but a legitimate customer who falls on hard times and skips out on the last $200 of their $5000 consumer debt will be pursued relentlessly by collection agencies for the next 48 months.
Lone hillside pine, Big Sur, CA
Maybe I am old fashioned and missing out on an essential part of understanding this new "Common Core Math" but I can't get this to add up.
Although it's outside the scope of this article, similar things happen with taxes here in the US: The IRS will pursue someone who struggles to pay $800 in back taxes to the ends of the earth, but if you owe $100,000 and "rattle an attorney" at the revenue agents, they'll be quick to "settle" with you at 1/3 of the original debt.
Now, I'm not some "hairy liberal" who believes poor people deserve a handout... I'm a "hairy liberal" who believes everyone should be subject to the same laws and due process.
And that-- of course-- is where I feel hopelessly out of step with reality.
How about YOU? Have you ever had one of your credit cards or bank accounts compromised by fraud? What was the end result? Was anyone "held responsible?" Did the credit card company (or bank) credit back the fraudulent charges? Does it seem to you that a lot of "petty criminality" doesn't have any negative consequences for the perpetrators? Leave a comment-- share your experiences and feedback-- be part of the conversation!
(As usual, all text and images by the author, unless otherwise credited. This is original content, created expressly for Steemit)
Published 20171005 14:49 PDT
Absolutely agree with you!! This is a matter of principle, and any honest person would want accountability when someone is being dishonest/stealing. How frustrating it is to see so little is done when there's an obvious wrong.
It seems that CERTAIN crimes or hard times are punished overmuch: a shoplifter stealing groceries and a homeless person getting a ticket for sleeping on the street are kicking people when they're down (and can't afford to pay the fines!). But fraud, be it big money banksters or small time phishing scammers - doesn't get punished, when the banks could most assuredly pay and even the phishing scammers have enough money to buy computing equipment and build websites and whatnot, and are way better off than the mom shoplifting diapers or the homeless guy sleeping on a bench. And in the not-illegal department, your example of someone not being able to pay back a couple hundred bucks is hounded for years, but mining companies destroy the local environment, launder the profits, and then claim bankruptcy so they don't have to pay for the clean up. Meanwhile, you CAN'T discharge student loan debt if you as an individual claim bankruptcy!
Our society gives extra benefits to those more privileged that snowballs their privilege, and punishes those least privileged that snowballs their suffering.
This will either change, or there will be guillotines, because people can't take it much longer.
FRAUD HAS NO CONSEQUENCES. At least not "petty" fraud.
how much would it cost them in litigation to get back that $1200. It wouldn't be profitable to sped $2,000 to retreive $1200...(last I heard it cost $2000 for a lawyer to even wake up)... PLUS..they're likely to not get the money anyway...it's gone..
The IRS will pursue someone who struggles to pay $800 in back taxes to the ends of the earth, but if you owe $100,000 and "rattle an attorney" at the revenue agents, they'll be quick to "settle" with you at 1/3 of the original debt.
The IRS is tax supported so the profit/loss thing is different....and they're lazy...who's going to put up a fight? The little guy will cave instantly. The big guys won't...so they go after the little guy.
The costs are passed a long, but the law enforcement issue is real. Here is the issue as I see it. To gather evidence and prosecute anyone takes resources. It is way more expensive to prosecute crimes. As a result much of law enforcement has turned in chasing low hanging fruit, traffic infractions, DUIs, these charges are easier most companies just build some losses into their budget (pricing) and they have insurance for large losses.
aww :(
The big clue, written in neon and lit up with huge spotlights that nobody will notice until after the West slides into being the 3rd world shithole it's dug for itself is that not taking responsibility is bad.
It's bad at the individual level all the way up to society as a whole level.
No one wants to take responsibility for anything, just pass it on to whomever protests the least or doesn't have the ability to fight back.
Fraud is what some call a victimless crime. After all the banks or PayPal, in this case, covers the loss to the victim. So, in someone's book there really is no harm done but if you the victim care to pursue the issue go ahead. And good luck. We live in a society where the criminal has more rights than the victims of these crimes.
Nope, not old fashioned at all! I'm one of those mythical "xennials" that have recently been diagnosed in our society, and I agree with everything that you have said here! I've had my credit card information stolen, and while I don't know whether they pursued the offending party or not, I hope that they did and that they were held responsible for their actions. That has consistently been one of the most frustrating things I have encountered, that I have chosen to play by the rules and take accountability for my actions and others who have chosen to skirt the rules or break them outright are rewarded by having no consequences at all for their actions.
Just to be clear, I'm aware that I hold many privileges that others don't, but I believe that rules should be enforced equitably for everyone. That doesn't necessarily mean equally, but that each person receives punishment in proportion to their crime and situation.
Nope, you're not old fashioned at all. That's BS that the frauder isn't being held accountable. I don't care if it was one cent. What they did was wrong, regardless. At yes, these idiots never put the money to "good use." Stolen accounts or cards are always used at big box chain stores for a new Gucci or flat screen tv. eyes rolling I'm glad your wife got her $$ back but PayPal didn't handle this right. And You are correct while this theft obviously isn't a "big deal " it sure is okay to charge folks struggling financially astronomical interest rates on a relatively small principle. 😡
I definitely know what it feels like to fall on hard times and struggle to pay back.