'50% of transactions were fraudulent' when Steam accepted Bitcoin for payments
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Re: '50% of transactions were fraudulent' when Steam accepted Bitcoin for payments
#2Unfortunately no details were given about what makes 50% of all bitcoin transactions “fraudulent” ?
What does that even mean?
* did someone try to send something other then bitcoin to a ₿ address?
* did a client claim he payed and did the payment seem to fail on his end?
* did a client not realise that you as payee also pay for the network fee?
Nowadays these kind of problems would be easily prevented by using bitcoin lightning payments, because they work in a fraction of a second and specify the exact amount that has to be payed. Also they are almost free of transaction costs.
Re: '50% of transactions were fraudulent' when Steam accepted Bitcoin for payments
#3What exactly does it mean "fraudulent transaction" in the context of bitcoin? It's not like you can use someone else's account number to purchase stuff.
Re: '50% of transactions were fraudulent' when Steam accepted Bitcoin for payments
#4> There's a difference between what it should be and what it really is currently in the real world.
I feel like that when I speak with bitcoin enthusiasts. Lots of ideology that I don’t necessarily disagree with… but the ecosystem is something else…
Re: '50% of transactions were fraudulent' when Steam accepted Bitcoin for payments
#5Unfortunately no details were given about what makes 50% of all bitcoin transactions “fraudulent” ? What does that even mean? * did someone try to send something other then bitcoin to a ₿ address? * did a client claim he payed and did the payment seem to fail on his end? * did a client not realise that you as payee also pay for the network fee? Nowadays these kind of problems would be easily prevented by using bitcoi…
Likely using stolen credit card credentials to buy bitcoin and then use them to buy things on Steam. They already have a massive problem with that without introducing bitcoin into the equation
Re: '50% of transactions were fraudulent' when Steam accepted Bitcoin for payments
#6Unfortunately no details were given about what makes 50% of all bitcoin transactions “fraudulent” ? What does that even mean? * did someone try to send something other then bitcoin to a ₿ address? * did a client claim he payed and did the payment seem to fail on his end? * did a client not realise that you as payee also pay for the network fee? Nowadays these kind of problems would be easily prevented by using bitcoi…
> * did someone try to send something other then bitcoin to a ₿ address?
That would not even register right? Different coins are completely separate and it wouldn't even have registered anywhere and show up in the statistic. As far as I know the addresses are also distinct between coins (so it's not even physically possible) but there are so many now and I've been out of that world for a few years now so that might have changed.
> * did a client claim he payed and did the payment seem to fail on his end?
You mean like opening a support case, claiming they have paid?
> * did a client not realise that you as payee also pay for the network fee?
That sounds possible. In this case, Steam's bitcoin client would indeed detect the transaction but it would never be mined and thus never really spent.
My first thought was a double spend, though, or perhaps that the source money was illegitimately obtained (e.g. later determined to be laundered money or so).
Re: '50% of transactions were fraudulent' when Steam accepted Bitcoin for payments
#7What exactly does it mean "fraudulent transaction" in the context of bitcoin? It's not like you can use someone else's account number to purchase stuff.
i suspect that steam was using a payment processor which identified that the coins were on a blacklist of sorts, and was not legitimately acquired (e.g., either stolen, or purchased with stolen money etc).
Re: '50% of transactions were fraudulent' when Steam accepted Bitcoin for payments
#8Unfortunately no details were given about what makes 50% of all bitcoin transactions “fraudulent” ? What does that even mean? * did someone try to send something other then bitcoin to a ₿ address? * did a client claim he payed and did the payment seem to fail on his end? * did a client not realise that you as payee also pay for the network fee? Nowadays these kind of problems would be easily prevented by using bitcoi…
I remember a period somewhere in the 2010s where it wasn't uncommon to see a business experiment with accepting Bitcoin (as Steam did), before transaction fees made it impractical.
Given the way people talk about LN, and the (quite understandable!) desire to avoid credit card transaction fees, why don't we see more businesses accepting it?
(Asking this in good faith; I am admittedly ignorant about LN and have not tried making a transaction with it.)
Re: '50% of transactions were fraudulent' when Steam accepted Bitcoin for payments
#9Unfortunately no details were given about what makes 50% of all bitcoin transactions “fraudulent” ? What does that even mean? * did someone try to send something other then bitcoin to a ₿ address? * did a client claim he payed and did the payment seem to fail on his end? * did a client not realise that you as payee also pay for the network fee? Nowadays these kind of problems would be easily prevented by using bitcoi…
Likely using stolen credit card credentials to buy bitcoin and then use them to buy things on Steam. They already have a massive problem with that without introducing bitcoin into the equation
Wut. This is like stealing faberge eggs so that you can throw them through the window of a Shake Shack that you want to break into
Re: '50% of transactions were fraudulent' when Steam accepted Bitcoin for payments
#10Earlier quoted context omitted.
Likely using stolen credit card credentials to buy bitcoin and then use them to buy things on Steam. They already have a massive problem with that without introducing bitcoin into the equation
Wut. This is like stealing faberge eggs so that you can throw them through the window of a Shake Shack that you want to break into
Have you ever heard the phrase "money laundering"?