With 340 million credits worth potentially trillions of dollars, fraud prevention is existential. The system must make fraud unprofitable and catastrophically risky.
Outcome-Based Structure: Each outcome component carries its own incentive value, and a provider earns it only by delivering that outcome to the citizen. Because the citizen chooses who to assign their credit to, a provider offering minimal help simply isn't chosen—and where fraud is suspected, citizens flag it and the government investigates. Helping people well is the only reliable way to earn credits.
Individual Assignment: Credits require voluntary assignment. Providers can't claim credits without genuine service delivery that the individual acknowledges.
Public Transparency: The primary mechanism is a new public blockchain—an immutable ledger recording every credit's issuance, assignment, and redemption. Anyone can audit which providers earned credits and how many, making fraud easy to spot and to flag.
Service providers accepting Human Credits operate under an imputed fiduciary duty to credit holders. This legal standard creates accountability beyond criminal penalties.
Individual Fraud: Federal crime equivalent to tax fraud. Up to 5 years federal prison. Full restitution plus $250,000 fine. Permanent ban from HC system.
Corporate Fraud: Federal crime with executive liability. Up to 10 years federal prison. Corporate fine equal to 3× credits fraudulently obtained. Permanent ban and public disclosure.
Organized Fraud: RICO statutes apply. Enhanced penalties up to 20 years. Asset forfeiture and conspiracy charges.