Prevention through design, fiduciary standards, and criminal penalties.
With 330 million credits worth potentially trillions of dollars, fraud prevention is existential. The system must make fraud unprofitable and catastrophically risky.
Outcome-Based Structure: Base credits don't cover provider costs. Profit only comes from achieving verified outcomes. Gaming by providing minimal help is structurally unprofitable.
Individual Assignment: Credits require voluntary assignment. Providers can't claim credits without genuine service delivery that the individual acknowledges.
Public Transparency: Dashboard showing which providers help how many people, success rates, outcome metrics.
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.
| Credit Value | Verification Required |
|---|---|
| < $10K | Recipient attestation; random sampling |
| $10K – $50K | Basic documentation; recipient confirmation; audit before bonus |
| > $50K | Third-party outcome verification; sustained checks; full documentation |