Comment by zahlman

> The reason why risk departments all inevitably reinvent Maoism is because the only effective enforcement mechanism they have is to refuse service.

How is it Maoist to refuse service???

> This calculus falls apart for the government.

It really doesn't. The judicial process is expensive and jail time isn't at all proportional to the amount defrauded (especially not when there is no political appetite for locking up a disproportionately "racialized" set of culprits, never mind the facts); nor does it solve the problem of recovering those funds. Further, the projections on the amount of fraud uncovered make it seem rather likely that a high percentage of those responsible are going free.

> We don't need to repeatedly reinvestigate the same people for the same crime "just in case".

The entire point of the system you're calling "Risk Maoism" is that it does not involve reinvestigation; it involves a presumption that reinvestigation would be a waste of time.