Control Fraud

by David_Allen1 min read3rd Nov 20109 comments

15

Personal Blog

 

A recent post by Bruce Schneier on control fraud.

Control fraud is a process of optimizing an organization for fraud, utilizing a position of power to suborn controls.
From the abstract of the paper Bruce references:
Individual “control frauds” cause greater losses than all other forms of property crime combined. They are financial super-predators. Control frauds are crimes led by the head of state or CEO that use the nation or company as a fraud vehicle. Waves of “control fraud” can cause economic collapses, damage and discredit key institutions vital to good political governance, and erode trust. The defining element of fraud is deceit – the criminal creates and then betrays trust. Fraud, therefore, is the strongest acid to eat away at trust. Endemic control fraud causes institutions and trust to become friable – to crumble – and produce economic stagnation.
Friendly AI is an important topic on this site, but what about creating friendly organizations such as companies and governments? The damage done by a government wireheaded for fraud can be enormous.

Can the same approaches used to build FAI be used to improve other types of systems?