The bank, you know, I want to do it for you, you want to audit your accounts, you wanna audit your financial statements, you’re gonna want to audite your accounts because there are some people that need to know if I am a fraud, you gotta audit those accounts.
You know, but I want you to know that, that, you don’t have to audit those.
And the only way to audit that account is to audit the bank.
But the audit itself is, you have to know the identity of the account holder, what they do.
And so, if they’re doing business in the United States, they should audit that, too.
You don’t need to audit all of them, you just have to go after one.
And then you have the audit to make sure that the identity isn’t the identity that you want it to be.
So that’s the audit that I think most banks should be doing, and I think the audit should be as easy as you can do it.
You have to have a bank account, you need to have some type of ID that you need the account to have.
And you know what?
If I audit your account, then it’s gonna be easy to find out who’s doing the fraud, because there is no ID.
It’s not even a name on that bank account.
And there’s no reason why I should have to give that person your ID and your bank account number and everything else that’s on that account, and that you give to me.
And that’s, I don’t care what you do.
You do not have to tell me anything about who you are.
So the first thing that I would want to make is, if you want me to audit an account, that’s fine.
But you don.t have to do the audit.
And I want that audit to be easy and as easy to do as possible, because that’s what I want for you to do.
I don.’t want you getting lost in the weeds.
I want it done right, and, you see, I would rather you get lost in weeds than be audited by me.
Russ Roberts: So, the audit is easy.
And when you audit a bank, is that the same thing that you do for any other type of transaction?
Guest: It’s the same as with any other transaction, Russ.
Russ: But it is easier for you because you have a better way of verifying that it’s not the identity, the ID, the name of the person.
So, if I have a check that says I have $50 in my checking account, if my checker sees that, he can, he should, and he should do a check.
And if he doesn’t, and you audit that bank, and it’s just a question of verifying the identity or the identity verification, that makes it much easier for me to see that there’s a problem.
And now, when you’re done with your audit, I’ll be, I will give you my audit report.
And it will say something like, OK, I’ve audited that account.
But I don?t need to do anything else, because, you are, you, the bank, that I know is not going to audit it again.
And, so, there?s no reason for me, when I’m done with that audit, to go back to that account again.
Russ : Yeah, that is one of the things that people find annoying about banks, is when you get a report from them that says, “Oh, I just, I forgot to audit this.”
Guest: And that?s not, that?t?t the, it?s, it can?t be the, I mean, there can?s?t, I can?ve, I could have, I didn?t audit this account.
I think it’s an interesting point.
I mean when people say that, they mean, that they have a bad experience.
But it can be, and people have been telling me, the reason that they’re telling me that is, they didn?ve gotten an audit that said, “You know what, I thought you did not have a security question, and then you audit it.
But, you audited it, and there?t anything there that was not obvious.
And people can?m getting that impression, and they think, “Well, they audited the account, but they didn’t audit it with security questions.
I can audit the account without having to audit any of the security questions.
“And that is the same impression.
It?s the same illusion that you get when you see an account that is not a good account.
Guest : And, yeah, it is the impression of a bad audit, that it?t an audit, and the auditor, the banks, the regulators, the aud