If the actual bank app does that, or is even easy to fool into doing that, then the bank should be responsible. That's the world "regular people" want and it's the world as it should be.

If random malware the user chose to install does that, then that is not the bank's fault. The bank is no more involved than anybody else. And no, I don't think "regular people" want to make that the bank's fault.

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mwwaters 2 hours ago | parent [-]

The legal infrastructure for banking and securities ownership has long had defaults for liability assignment.

For securities, if I own stock outright, the company has to indemnify if they do a transfer for somebody else or if I lack legal capacity. So transfer agents require Medallion Signature Guarantees from a bank or broker. MSGs thereby require a lengthy banking relationship and probably showing up in person.

For broker to broker transfers, there is ACATS. The receiving broker is in fact liable in a strict, no-fault way.

As far as I know, these liabilities are never waived. Basically for the sizable transfers, there is relatively little faith in the user’s computers (including phones). To the extent there is faith, it has total liability on some capitalized party for fraud.

These defaults are probably unknown for most people, even those with large amounts of securities. The system is expected to work since it has been set up this way.

Clearly a large number of programmers have a bent to go the complete opposite direction from MSGs, where everything is private keys or caveat emptor no matter the technical sophistication of the customer. I, well, disagree with that sentiment. The regime where it’s possible for no capitalized entity to be liable for wrongful transfers (defined as when the customer believes they are transferring to a different human-readable payee than actually receiving funds) should not be the default.

	▲	TeMPOraL 32 minutes ago \| parent [-]
		> Basically for the sizable transfers, there is relatively little faith in the user’s computers (including phones). To the extent there is faith, it has total liability on some capitalized party for fraud. But that is expensive, so my impression is that for non-sizeable transfers, and beyond banking, for basically anything dealing with lots of regular people doing regular-people-sized operations, the default in the industry is to try and outsource as much liability onto end-users. So instead of treating user's computers as untrusted and make system secure on the back end, the trend is to treat them as trusted, and then deal with increased risk by a) legal means that make end-users liable in practice (keeping users uninformed about their rights helps), and b) technical means that make end-user devices less untrusted. b) is how we end up with developer registries and remote attestation. And the sad thing is, it scales well - if device and OS vendors cooperate (like they do today), they can enable "endpoint security" for everyone who seeks to externalize liability.