Replying to Avatar Lane 🦢

Here at Swan, we've made it nearly 3 years without having our customers use Plaid to connect their bank account.

We're considering finally turning it on. While I hate the idea of helping a surveillance company get even more data, the reality is that reversal fraud is a plague on Bitcoin companies, and Plaid will help Swan to better manage the risk.

Of course, we'll continue to allow connecting manually via routing/acct #s.

Can anyone talk me out of launching with Plaid?
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Derek Ross 2y ago

have you had a lot of transaction reversal fraud? also, keeping the ability to continue to manually enter your account numbers wouldn't stop the fraud though, right? this doesn't seem like it changes anything besides making it easier for customers to link bank accounts at the cost of surveillance.

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Lane 🦢 2y ago

Yes, Bitcoin (more broadly, crypto) companies are a huge target for scammers. Buy Bitcoin, withdraw, call the bank to reverse the transaction, repeat.

Honestly, we (Swan) have done a really good job managing this as compared to our peers, but we're always wanting to do better. A single $10,000 reversal is 1000's of customers worth of lost revenue...

Good point re: scammers could continue entering routing/acct. We'd be put in a position where we're only offer faster unlock times for people verifying with Plaid (which, to my original point, perpetuates the surveillance/honeypot element of this).

It's a tough spot to be in.