• TowardsTheFuture@lemmy.zip
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    11 months ago

    General question, because I don’t give a shit about blockchain to research it.

    Does it have a way to quickly and effectively handle fraud? And don’t tell me “there’s no way to commit fraud” because people can steal wallet passwords no fucking problem. With most banks they will actively track fraud, cancel those transactions, and restore your funds and possibly shut down the card automatically while still allowing the account to exist so you can access your money. Is that the case with blockchain?

    • gila@lemm.ee
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      11 months ago

      It depends on whether you’re interacting with the blockchain directly, or via a custodial solution more appropriate for end consumers. Same like how you don’t get a refund if you operate a western union branch and fuck up the wire.

    • parpol@programming.dev
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      11 months ago

      Yes. There are Escrow services in crypto that hold and issue chargebacks, but it is to to you if you want to use such a service.

      centralized crypto exchanges also have fraud combatting teams. An example is that exchange that sponsors kitboga, the youtuber who screws around with Indian scammers. They lock scammers’ accounts from withdrawing but not depositing so they keep sending victims’ money to these accounts, and then eventually they lock the accounts and transfer the money back to the victims.

      Obviously an issue with this approach is the scammers can just use decentralized wallets, but recently exchanges started blocking transactions to these too unless you provide KYC info about them, so they’re trying at least.

      If you do things right, you can be relatively safe from fraud and scams, but most people won’t do things the right way.