"This secondary scam isn’t run to defraud money from banks, it’s run by banks to defraud money from their customers. The name of this racket is “Identity Theft Protection.” In this scam, Warren Buffet’s bank tells Mr. B. that they are liable, at any moment, to hand over all of his money to the next person who walks into their lobby wearing glasses and fake bushy eyebrows. The bank, they explain, would be helpless to prevent such an occurence. However, for a small fee — say $20 or $30 a month — the bank would be willing to offer him Identity Theft Protection. In exchange for this fee, the bank explains, they won’t give Warren Buffet’s money to anyone who can’t prove he really is Warren Buffet. Otherwise, it seems, they can’t be expected to distrust or doublecheck anyone who makes such a claim. So the bank is trying to charge an additional $240 or $360 a year to do what it’s supposed to be doing anyway."
