4th largest bank in USA creates millions of fake accounts

… and still many think cryptocurrencies are the problem, because they can’t be regulated like banks can be; because that works so well, right? :joy_cat:

The Wells Fargo (WFC) boss is out in the wake of a national uproar that erupted after regulators accused the bank of creating more than two million fake bank and credit card accounts.
http://money.cnn.com/2016/10/12/investing/wells-fargo-ceo-john-stumpf-retires/index.html

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This sort of thing is the reason decentralized currencies are inevitable. The sort of illegal activity the established power structure is used to pulling off won’t be able to stay in the shadows as the Information Age progresses. Most people don’t want to be associated with things and now they’re getting opportunities to opt out.

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Where value is placed depends upon circumstances. The Central Banks and financial markets have eroded so much trust that people are looking elsewhere for value.

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I don’t understand the fake bank accounts, how would they make money off of it? There’s no real people, to pay the fees?

Or was it a way to inflate numbers or something?

Most likely. I guess the “government bailouts” took note of the number of savings accounts in order to determine the size of the bail out. (Just one possible reason). Maybe for insurance “fraud”. It certainly would magnify the apparent loss in any “crash”

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Some people are pretty horrible…

Or it’s just a result of vulnerable systems… Need SAFE!

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Just had another thought.

In Australia the banks are allowed to lend out for mortgage 5 times what they have in “cash”. If that is similar in the USA where a bank is limited in what it can lend out by what it has in savings accounts then inflating the number of accounts allows them to lend out more. I am assuming that the fake accounts had fake balances.

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Well golly now that’s some high-profile tomfoolery pardon my explicit language

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Me neither, but the point is that one of the arguments against cryptocurrencies is that they can’t be regulated, thus they will be used by criminals. Yet, no regulations could stop one of the world’s largest financial institutions to commit crime on a large scale. Not that it’s the first time, not that it’s not being done routinely, it’s just always funny when one of these things blow up for a few days, just so that everything would go on the same way soon after.

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Definitely, I’m a million percent with you on that

…until better systems are finally past Beta and launched with live SafeCoin :smiley:

Or, it is the result of plain old human selfishness or, sometimes, just plain evil.

I don’t believe people are victims of their circumstances. Circumstances are like cracks on a jar: that’s where the contents will first escape, whatever they may be… You can’t change what’s inside by patching up the jar; it will just have to find another way to get out.

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"…for engaging in pervasive fraud over the years which included opening
credit cards secretly without a customer’s consent, creating fake email
accounts to sign up customers for online banking services, and forcing
customers to accumulate late fees on accounts they never even knew they
had. Regulators said such illegal sales practices had been going on
since at least 2011."

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