Correction, a couple of months ago
http://nakedsecurity.sophos.com/2012/02/14/cryptome-org-hacked-into-serving-up-blackhole-exploit-kit/

They claim 2,863 visitors at risk, probably a lot more. Usually the kit is used for side channel targeted attacks not an open net catching everybody

Dwolla now offers an instant loan service for up to $500. Don't even need to rob people's bank accounts, just make a new account using their stolen information you bought for $10 on a crime forum and apply for credit. Spend $500 to get bitcoins and they won't know for a month anything is wrong.

Ohh ... I didn't even think of that, ya -- that's going to leave a mark.

It could actually go more than a month.   Dwolla doesn't do an ACH just because you didn't pay at the end of the month.  They just assess a fee.  It proably could go a couple months or more before they send collections to look into it.

I 100% agree

So far the trust system used here and at #bitcoin-otc has almost eliminated all fraud.
The new bitcoin market MPEX is also based on this system. IDs, 2 factor auth, IP tracing is all meaningless in 2012 seems GPG auth is almost invincible as the people that use it typically don't use Windows exploitable OS, don't click on obvious side channel attacks in their email box, know what they are doing and all around a good system so far.

Dwolla just needs to get rid of the "pull" ACH funding option.  This is the most insecure money transmission ever invented by the banks.  It's awful.  All I need is a printed check from any person, and i can pull money from their account.  No PIN, no security, nothing.  It should be dropped entirely.  "push" type ACH, initiated by logging in to your online bill-pay, is much more secure.  

This just seems so back-ass-wards.  They should allow more businesses into the push system because it allows the banks to vet them.  Accessing the pull should be the more restrictive option! 

I ran into this problem last year. Talked to managers at several different branches (Chase) who kept insisting it was impossible for me to push ACH and that what I actually wanted to do was pay the fee for a domestic wire transfer. Turned out that I had to set up a business account, and pay an additional monthly fee for the ability to initiate ACH transactions.



I don't think this is true. You need the bank login/pw to confirm the Dwolla verification deposits. Anyway, eCheck fraud isn't the problem. Bitcoin exchanges are facing this type of online bank fraud (deposit verification + ACH pull) because the bank account log-ins that can do ACH push (like payroll accounts) are defrauded more directly through reloadable debit cards or money mules (http://krebsonsecurity.com/2012/04/thieves-replacing-money-mules-with-prepaid-cards/).

Dwolla has stepped up their procedures to counter the latest attack.  Here is a summary of new steps:


--------------------------------------

Starting today, users sending money to your account will need to meet and/or maintain:

1) Connect a social network
2) Have a bank deposit 30 days old
3) Enable a DWOLLA hub page
4) Have a verified account
(i.e. Social Security and/or Photo Verified)

We are working hard to make sure this policy does not affect your most frequent, loyal, and responsible customers.

Thanks for being a part of Dwolla. We hope our new changes will protect customers and merchants alike. Please let us know if you have any questions.

All the best,
Dwolla

--------------------------------------



Discussion at this thread by Charlie: https://bt.irlbtc.com/view/76866.0

Nope,  I emailed Dwolla support, and all four are required to send funds to certain merchants, such as MtGox.

The fact that they are upselling their service as part of the verification process is disgusting, and (along with needing to be connected to my facebook) the reason I am cancelling my account.

Why didn't the people affected get a notified of this?

So they are going to charge a quarter then ask for this info?