That’s the estimate for how many “ghost accounts” were created by banking giant Wells Fargo.
That’s about 1% of the total USA population. Here’s the gist…
Wells Fargo created millions of fake accounts for its customers to charge them fees for services that they never requested. It was later discovered that Wells Fargo was signing customers up for unwanted insurance policies as well – again, to charge customers for services that they never requested.
This is outright fraud.
It’s for reasons like this that a new type of technology has burst onto the scene. It enables secure, reliable, and transparent transactions, without the potential for manipulation by big financial institutions.
Historically, companies, governments, and individuals all keep their records in one centralized database. Imagine a room with racks of computers that store information.
But centralized databases can be manipulated. In the world of blockchains and distributed ledger technology, the exact opposite is true. The transactions recorded on the ledger represent a transaction that takes place between the parties involved and is confirmed by the blockchain network via a consensus.
Once a transaction is written to the ledger, it is immutable. The value and utility that a well-designed blockchain provides is remarkable. Immutability, secure transactions, privacy, transparency, the reduction or elimination of fraud.
In a centralized system, we depend on “trusted” intermediaries (banks and other financial institutions) to conduct transactions. But as we’ve learned time and time again, these “trusted” intermediaries are not at all trustworthy.
It wasn’t long ago when the LIBOR scandal uncovered that many of the most “trusted” financial institutions in the world were manipulating interest rates for their own benefit, and of course at the expense of others.
Banks like Barclays, Deutsche Bank, JPMorgan Chase, UBS, Citigroup, Bank of America, and the Royal Bank of Scotland were found to be right in the middle of these manipulations.
The corruption is seemingly endless.
By design, blockchain technology removes the potential for manipulation to take place.