[wmf]

My understanding is that Dwolla is trying a fairly unusual approach to handling fraud, which is that they pay out of their own pockets for fraud (instead of kicking it down the line as all other financial institutions do) but this requires that they actually prevent fraud, not just identify it after the fact. And the cost of really stopping fraud turns out to be something that many people do not feel comfortable paying when they're personally confronted with it.

[spinlock]

Kind of, Trade Hill lost a hundred thousand or so when Dwolla falsified their tranaction record and stuck them with the fraud. This was a bunch of reversed ACHs (which Dwolla claims they don't allow). Very shady company.

[dopamean]

If this is the case then the story is still creepy but I support this attempt to combat fraud.