This sort of thing is where I hope Bitcoin can help more people.
It is a use for a Bitcoin like system
(The transaction costs, planet destroying character, and slow speed probably not Bitcoin)
It is the intersection of money laundering and normal requirements
Stopping crime by stopping money laundering will always have these problems, surely?
Is there a way to inhibit CC fraud, and money laundering without making life difficult for people who are in the tails of the distributions?
Even cash will not suffice as many places no longer accept it
Yes.
Money laundering detection inescapably relies on private actors making a pre-prosecution estimate of whether money was earned illegitimately.
Private actors have much less information available to them than real law public sector enforcement.
And even with full information, trials cannot be predicted deterministically so there will always a gap those publicly deemed guilty and those privately deemed guilty.
Those in later category will suffer unjust financial hardship.
Yes. Have better customer support and actually fix issues when they happen.
This ends up costing someone money.
I do not think it will be paid for by reducing profits...
...you and I will pay that bill
I believe so. The optimal amount of fraud is non-zero.