APIs of evil: studying fraud as infrastructure

About this episode

Patrick McKenzie discusses industrial-scale fraud and its implications as a business process.

Patrick McKenzie (patio11) reads an essay about "industrial-scale" fraud and why it should be treated as a professional business process rather than a series of isolated accidents. He explains how fraudsters leverage specialized supply chains—shared CPAs, incorporation agents, and "least attentive" banks—to loot public funds. Patrick argues that the government’s "pay-and-chase" model is fundamentally broken and suggests that simple "proof of work" functions, like a 30-second cell phone video of a workspace, could provide the visceral signal that paperwork lacks, and examines the state’s lack of "object permanence" regarding serial fraudsters and how scaled data provides the defense-side advantage needed to catch modern frauds. – Full transcript available here: www.complexsystemspodcast.com/fraud-as-infrastructure/ – Presenting Sponsor: Mercury Complex Systems is presented by Mercury—radically better banking for founders. Mercury offers the best wire experience anywhere: fast, reliable, and free for domestic U.S. wires, so you can stay focused on growing your business. Apply online in minutes at mercury.com . Mercury is a fintech company, not an FDIC-insured bank. Banking services…

People in this episode

Host: Patrick McKenzie

Topics covered

• fraud
• business process
• government policy
• data analysis
• financial crime

Keywords

• fraud
• infrastructure
• government
• proof of work
• data

Sponsors

Mercury

Mentioned in this episode

Organizations: Choice Financial Group, Column N.A.

Books & works: APIs of evil: studying fraud as infrastructure

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