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Comment by tyre | Hacker News Reader

How do you know that to be true?

Social engineering, much hacking, scamming, etc. don't care about race or gender or connections or degrees, all of which are very real things limiting people's professional success. Many can be done without interacting with a team and without any kind of interview, both of which are skills.

I doubt these people are discounting their time or labor. They might be optimizing for the opportunities available to them. Willingness to do something illegal could reasonably be seen as an arbitrage opportunity—something seen in business all the time.

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The case for crime is, in fact, pretty clear-cut you have a bright mind, an appetite for risk, and resist societal expectations about orderly conduct - i.e. it is another flavor of "startup founder".

You only need one big score where you get away clean and you're done, your criminal career is complete in one go and you can retire. Compare that to all the fuss of operating within society, the social signalling and bargaining and courting of gatekeepers - that's only worth it if you've been groomed for it in some way.

And computer crime is as clean as it comes, in terms of the kind of damage done. The ultimate purpose is simple - change some database rows! No bashing of heads or physical entry to property needed. With appropriate choice of targets, you pass the resulting crisis over to some figurehead executive who mumbles for a bailout from the government. Numbers are shifted around again after some delay and everyone is happy.

By contrast the SV startup dynamic is one of gaining overt power over others, not just getting a high score. The product and platform acts as a Trojan Horse for this subjugation, powered by a belief(oftentimes a sincere one) that this is a grand humanitarian project, which in turn inspires cult thinking. Then to even get in as a worker, you have to fit into the cultural mold. Your userbase is likewise fostered towards dependence and ushered to mega-scale, data-driven extraction, if not immediately, then later, after the company is acquired. It's all quite a long schlep if you just like working with technology to help people.

>You only need one big score where you get away clean and you're done

The laughable part is here. People bring their problems with them. The kind of person who would pull off a big score, such as a brilliant hack or a bank robbery, won't retire to the Oregon coast and drive at or below the speed limit for the rest of their lives. A lot of those traits are traits of antisocial personality disorder. People like that are magnets for trouble. They won't lie low and relax for the rest of their days.

It's a lie criminals are not professionals. It comes with a set of other rules, rituals and codes. The money is not a big score but an unlimited amount of cashflow. The antisocials are the ones blowing up a money printing machine just for the sake of their ego. Have you ever seen estimates of the grey economy? That world is running way more efficient than civilian life because of the stakes. Guys like Pablo get that famous because he had an antisocial personality and had to blow up an airplane while he was one of the most richest billionaires in the world.

Antisocial personality disorder is almost a prerequisite for career criminals. Disagreeable enough to commit crime and not feel bad about it, extroverted enough to enter or form a gang, and low enough in neuroticism to keep your cool under pressure. I'm not trying to paint all antisocial people as "bad". It's also a personality configuration that works well in certain military positions.

There's a famous bit of research done by the guy who wrote Freakonomics.

He tracked how much drug dealers were actually making and found that if they just got a job at McDonald's they'd have a higher income.

If I remember correctly, that was for low level weed dealers, not scamming financial systems. A successful identify theft of a middle or upper income family will reap a payout much greater than a fast food worker.

Dealing drugs can also offer a much higher degree of flexibility to conventional work

When I was a teenager, I tried to work at McDonald's over one summer break.

They turned me down.

Freakonomics is an awful representation of economics. It's literally a collection of anecdotes and uncontrolled experiments.

I can say, based on my own observations, that is absolutely nowhere near true. Many people selling drugs to their friend groups make profit in excess of $400 a day, tax free.

I can't speak for a larger group, of course. Perhaps the average is weighed down by more casual actors.

It's only tax free if you're stupid enough not to launder the money.

I don't think that an individual proprietor earning only 100k would have a motivation to do that. One can pay rent, buy vehicles, and purchase most everything else with cash. Why give 40% to the government? Social responsibility is great, but not if it's going to get you interdicted as a drug dealer.

You can do that, but at some point you might be asked to explain how you manage to rent a nice apartment and own a car without earning any income. Outright tax fraud isn't really any more of a sensible risk to take if you're a career criminal than it is if you work a regular job. After all, they got Capone for tax evasion.

It's more likely that they'll be caught up in enforcement of controlled substance trafficking laws, and those are the more severe charges the authorities tend to pursue.

Is it? It's quite difficult to prove that someone is involved in trafficking controlled substances, if they're careful. It's not difficult to show that someone is committing tax fraud if they have a big house and a car and zero declared income.

Most people involved in such activity have incriminating communications that are very easily used in court such as text messages. The bar for proving that various messages are evidence of illegal activity is surprisingly low. One individual not only has to be very careful, but also enforce the same level in everyone who communicates with them while providing customer service (e.g. making customers happy, feel good l, not offending them and so forth).

The issue of tax fraud is only an issue if they investigate you - someone in the tax department would have to find a reason to take notice. In the case of a narcotics trafficker it's more likely that activity would be observed by drug investigators than for the tax department would determine there's someone paying a mortgage or rent that isn't a significant income tax payer. That's not really how tax investigations work.

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