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Block: Inflated user metrics and “frictionless” fraud facilitation

hindenburgresearch.com

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Re: Block: Inflated user metrics and “frictionless” fraud facilitation

#41

Post by NamTaf »

numlocked wrote: post #23

"CEO Jack Dorsey has publicly touted how Cash App is mentioned in hundreds of hip hop songs as evidence of its mainstream appeal. A review of those songs show that the artists are not generally rapping about Cash App’s smooth user interface—many describe using it to scam, traffic drugs or even pay for murder." Hindenburg made a music video compiling the references that is...uh...worth watching: https://www.youtube.co…

This feels like awkward sponsored product placement like you see in pop music videos.

Re: Block: Inflated user metrics and “frictionless” fraud facilitation

#42

Post by chii »

overthrow wrote: post #24

I didn't know Square had changed their name to Block. Looks like it happened in December 2021: https://investors.block.xyz/news/news-details/2021/Square-In... That said this really seems overblown. The report seems to mostly just talk about Cash App. Square Payments, Weebly and TIDAL are not even mentioned. Afterpay is mentioned but that was a 2022 acquisition so the problems likely predate Block's involvement. It fe…

> It feels weird that they're using Cash App to indict the company as a whole.

they profit off shorting. So it makes sense to target them if the company has _some_ issues with fraud, even if it's a small part of their business, as it hasn't been priced in yet before this news breaks and people are positive about the company.

They aren't doing a public service or anything. It's a reason why companies like credit suisse don't get targeted by hindenburg, because the market has almost priced in all of the fraud, and the shorting opportunities arent really there.

Re: Block: Inflated user metrics and “frictionless” fraud facilitation

#44

Post by likecarter »

chii wrote: post #42
overthrow wrote: post #24

I didn't know Square had changed their name to Block. Looks like it happened in December 2021: https://investors.block.xyz/news/news-details/2021/Square-In... That said this really seems overblown. The report seems to mostly just talk about Cash App. Square Payments, Weebly and TIDAL are not even mentioned. Afterpay is mentioned but that was a 2022 acquisition so the problems likely predate Block's involvement. It fe…

> It feels weird that they're using Cash App to indict the company as a whole. they profit off shorting. So it makes sense to target them if the company has _some_ issues with fraud, even if it's a small part of their business, as it hasn't been priced in yet before this news breaks and people are positive about the company. They aren't doing a public service or anything. It's a reason why companies like credit suiss…

It just ruins their reputation as a reliable short-seller. It's short-sighted. They had good reports until now.

Re: Block: Inflated user metrics and “frictionless” fraud facilitation

#45

Post by boh »

noloblo wrote: post #14
agentgumshoe wrote: post #4

This is bad for Block. I hope. It's incredible that since 2008 it actually seemed immensely easier to skirt regulations and laws (under the banner of 'innovation'), and not just in finance. Just about all of silicon valley seems to have run the longest and broadest grift we've seen. This year's gonna get real interesting.

> Just about all of silicon valley seems to have run the longest and broadest grift we've seen. What do you mean by this

Silicon Valley creates companies with unsustainable business models that have to rely on tax/labor/regulatory loopholes. They pretend that profitability is due to actual technological innovation while negatively affecting actually functioning companies who don't have the same access to capital (bcs real companies can't pretend like they're capable of infinite growth). What most Silicon Valley companies wind up being are financial instruments that function exclusively as exit strategies. The Silicon Valley business is to essentially create innovation narratives they can sell without facing the consequences of poor business practices.

Re: Block: Inflated user metrics and “frictionless” fraud facilitation

#46

Post by noneeeed »

onphonenow wrote: post #11
propercoil wrote: post #2

[flagged]

That idea that people believed Nikola is crazy. I read the report. The cto was a concrete guy family member or something. The vehicle they used to show things working was rolling down a hill - I’m just amazed that so few look closely enough at this stuff. Didn’t read the adani report beyond auditor stuff which also seemed shaky

The podcast Bad Bets has a series on Nikola, it's incredible just how bad the fraud was, and how long it took to be uncovered just what a con artist Milton was.

Re: Block: Inflated user metrics and “frictionless” fraud facilitation

#47

Post by jevgeni »

brightball wrote: post #16

Wow... > “Every Criminal Has A Square Cash App Account” – Former Employee > The Signs Are Hard To Miss: There Is Even A Gang Named After Cash App, With Members Arrested For Fentanyl Distribution > Our research shows that Block has embraced a traditionally very underbanked segment of the population: criminals. > Many of These Songs Describe The Role of Cash App in Facilitating Criminal Activity, Including Murder-For-H…

It's essentially a bank without capital requirements and that does not do KYC checks.

Re: Block: Inflated user metrics and “frictionless” fraud facilitation

#50

Post by hoofhearted »

numlocked wrote: post #23

"CEO Jack Dorsey has publicly touted how Cash App is mentioned in hundreds of hip hop songs as evidence of its mainstream appeal. A review of those songs show that the artists are not generally rapping about Cash App’s smooth user interface—many describe using it to scam, traffic drugs or even pay for murder." Hindenburg made a music video compiling the references that is...uh...worth watching: https://www.youtube.co…

Correct.

A scam here in Baltimore that keeps occurring is that the squeege kids will run up on someone unsuspecting and start cleaning their windshield.

They will pressure the driver for a tip, and the driver will say they don’t have cash of course.

They will say that’s cool, you can send me a tip. They ask the driver for their phone so they can look up their cashapp for them, and bam the driver got scammed.

What’s happening is that the squeege kid is looking up his account on your phone, and then sending himself like $2,000.

People have complained that cashapp won’t help, and their bank isn’t letting them dispute the charge.

In my opinion, this is clearly an anti pattern on Cashapps end, and I would imagine at least one engineer would have spotted this vulnerability by now. I would think that Cashapp would build in a simple pin confirmation before a stranger could wire themselves a couple thousand dollars. This has bugged me for the last 2 years lol

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