Comment by mchusma

I think a more fascinating look at this is how the difference between "legitimized fraud" versus "illegitimate fraud".

Basically, for most businesses the amount of "friendly fraud" which means customers disputing charges because they changed their mind or didn't want to talk to the company or whatever is 10x the amount of fraud from stolen charges. (Visa estimates this as 3x but my experience is different).

Civil asset forfeiture is the government seizing property without trial, and it is slightly more than theft each year.

So between these things, it seems pretty easy to reduce fraud by 75% without much additional friction.