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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

#181

Post by LeifCarrotson »

hoofhearted wrote: post #50
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 h…

A "time delay safe" function in the app could accomplish the same thing. I'd certainly want to take 30 minutes to think about it (or login and unlock large transfers 30 minutes ahead of time) if I was going to spend more than a couple hundred dollars.

Right now, muggers can't take $1000 out of my wallet because I don't have $1000 in my wallet. They cannot force me to use an ATM to empty my bank account because my ATM daily limits are set to $500/day.

But, in theory, they could empty it if I was on Cashapp.

Cashapp, like so many tech startups rushing to replace incumbent taxi and hotel and other services with phone apps, has missed Chesterton's fence on this state of affairs in its hurry to become the key part of "providing everyone with access to important financial services so they can fully participate in the economy."

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

#182

Post by rowls66 »

gessha wrote: post #165
bfeynman wrote: post #68

Earlier quoted context omitted.

That is entirely on you if you give away your phone to those kids. I would think they would just run away with it

Ah, yes, it’s the people who got scammed who are at fault. Everyone should always be ultra suspicious of everyone around them, no happiness or fun allowed. \s I want to live in a world where I can trust a random stranger, not suspect them of robbing me. Justifying some extra protections like a pin or a fingerprint check to finalize a transactions should not be this big of a deal.

I think that most other people would as well. Unfortunately, there are enough people willing to take advantage of that good will that you are a fool if you are not somewhat suspicious.

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

#183

Post by boh »

JumpCrisscross wrote: post #154
boh wrote: post #142

Earlier quoted context omitted.

Define "does fine". Spending and losing VC money doesn't count.

> Define "does fine". Spending and losing VC money doesn't count Then Revel does fine.

I'm guessing by the rhetorical nature of the response, the details of "fine" aren't clear.

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

#184

Post by birdyrooster »

cal5k wrote: post #141
reaperducer wrote: post #125

Earlier quoted context omitted.

This happened to a friend of mine in Atlanta. Someone tried to sell her a rock at a traffic light. When she wouldn't buy it, they used it to smash her rear driver's side window and grab whatever they could from inside the car.

Risky move, given that Georgia is a constitutional carry state and castle doctrine extends to occupied vehicles.

Im pretty sure most guns are owned by hoarders sitting in a cabinet somewhere they aren’t likely to be in someone’s car who is ready to use it. Gun owners are a minority and they are just very enthusiastic individuals that they seem like a larger contingent than they are.

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

#185

Post by boeingUH60 »

> “I Paid Them Hitters Through Cash App”: Block Paid To Promote A Video For A Song Called “Cash App”, Which Described Paying Contract Killers Through The App.

> The Artist, “22Gz”, Was Later Arrested for Attempted Murder

It astonishes me how many rappers do this. It’s one thing to be a criminal, and it’s another to rap about your crimes and do the job of the investigators…they probably think it makes them tough or something.

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

#186

Post by Finnucane »

"The “magic” behind Block’s business has not been disruptive innovation, but rather the company’s willingness to facilitate fraud against consumers and the government, avoid regulation, "

Isn't that the whole point of 'disruptive innovation'?

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

#187

Post by metalliqaz »

RcouF1uZ4gsC wrote: post #29

Isn’t this pretty bad for the Block, Inc leadership. KYC and money laundering laws are one of the few corporate laws that can result in doing actual jail time. In addition, politics being what it is, with the SVB “bailout” the Biden administration will be looking for something to show that they are not coddling Silicon Valley. Throwing a few execs in jail would send the message.

There is no will in the government to enforce that stuff anymore

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

#188

Post by HarryHirsch »

finfrastrcuture wrote: post #121
hoofhearted wrote: post #50

Earlier quoted context omitted.

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 h…

This reminds me of Brazilian banks which have introduced "Street Mode" to secure your banking app while out of the home: https://www.riotimesonline.com/brazil-news/brazil/nubank-wil...

"Brazilianization" is a real phenomenon, isn't it? One wishes we weren't going that way in the West, but we are.

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

#189

Post by paganel »

mistrial9 wrote: post #91
paganel wrote: post #52

Earlier quoted context omitted.

On the one hand it's obvious that the Hindenburg people are right on this when they say that Block's app is used for criminal activities and money laundering. On the other hand that's what we get for trying to push cash itself more and more outside the boundaries of modern society. That video in a way made me root for the bad guys, a no-cash society where petty crime doesn't happen because the powers that be control…

in USA politics, this approach to outrage among literate people is related to "Willy Horton" ads, which portray an obviously stereotypical, middle-aged black man with a long history of crime, being released into society and then in the same breath blaming the authorities politically. This famously backfired. The intended outrage here is "ghetto males" doing illegal things with money, using the cell phone, and braggin…

This coming just mere weeks away after people on this forum (and some of the people running the forum itself, like the CEO of YCombinator) were supporting (and more) much more bigger fraudsters compared to the rap lyricists presented here as examples of financial fraud, I'm talking about the VC industry in connection with the SVB case.

On a more general note I'm also curious about what you mention at the end of your comment, i.e. those higher societal costs are keep piling up, I'm wondering where is it all going to end.

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