They could very well modify and improve their "inactive account" algorithms to profile smart/stupid people based on habits, useragent strings (geeks use linux or something lol), etc. It could leave the inactive accounts that belong to smarter clients in the holdings report, and drop the accounts that belong to what the system believes to be stupid people. It would drastically reduce the chances of getting caught.
Accounts with significant balances are likely to be closely monitored as I said, so there wouldn't be much to gain.
Also this can be easliy beaten by having to publish a list of opened/closed accounts, so everyone can check the counts match, if suddenly an account is missing in the global balance sheet then that means that it has to be accounted for somewhere else where it can be scrutinized.
If a bank wants to hide an account it has to take the risk that someone is going to find out their account has been claimed as closed. Not worth the risk.
I should clarify. I meant for their own internal statistics. Spends per hour, funded accounts, etc. If they excluded inactive accounts from their statistics (well, they fall off the stats because they are inactive) they could use that as an excuse for excluding them from a published holdings report when "called out" by the public. (Blame it on a software bug.) Those unreported coins could be siphoned off by spending the difference to a new master bc address and publishing a bogus report. The bogus report would check out and the BBE would confirm that the total holdings match the bc address.
That would be plain stupid, it would make for an even worse reputation : "we do banking, our software is buggy, yea you can trust us".
So that's a non issue.
I should clarify. I meant for their own internal
They could even put up a hash checker on the same page. When someone goes to calculate their hash with that handy tool it would just add them to the list on the fly (assuming they aren't already on it), and move the activity date up on the account. lol! I just thought of that one.
Even stupider idea of them to do such a thing, the day someone double checks they're dead.
Of course not, if a user sends funds to another user, the sum of the balances of the full account balances report will still end up as the exact same figure.
Sure, but that doesn't matter if you can exclude some users and spend those coins behind the scenes.
Point is you can't
If you advertise the fact you're not fractional reserving, and you put such control mechanisms up there's no way you could effectively cheat and gain something worth a tenth of the risk out of it.
Anyway, it is better than nothing. I'll agree with you there. I just think there are ways to steal if one is very creative. You assume that everyone else is as skilled as you are. Most of the people who will be drawn to e-wallet systems will be people who are basically non-techs that want to use Bitcoin. They are the easiest to steal from unnoticed.
The good part about that system is that it can be automated and checked by a third party who has no financial incentive in addition to random skilled people checks.
A whistle needs only to be blown once
This could go on and on and I do need to sleep sometime.
I need to go do some fiat currency paid work :p