There are many types of fraud, and fraud is a social problem just as much as a technical one.
I agree but there is no incentive to commit fraud if you use bitcoins which solves a lot of things in my opinion.
I guess my point is this would be one reason someone would put money into bitcoins now they need places to spend but yeah that will come.
What are you speaking about?
Bitcoin is perfect for fraud. There are many types of frauds. The mybitcoin / bitcoin superstore kind of fraud where the seller just disappears with bitcoins is a perfect example why bitcoin is much, much _worse_ payment option than credit card.
Bitcoin is great payment method, but only with a reputable escrow service or something similar. From consumer perspective, credit cards are still the king.
