system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: When my paycheck gets direct deposited, or I use my bank's Bill Pay feature, does physical money get exchanged between banks? If it's all just digital records, what stops banks from just making it all up?
gpt
Well, the main reason is auditors and government regulators and the fact that what you are talking about it very easy to detect and extremely criminal. So, high risk + low gain = not happening.

But let's take a look at the mechanics of this. OK. so, let's say that the bank just changes the numbers so that, instead of your paycheck being $1000, it's actually $100. That would work, right?

Well, no. You'd notice that, wouldn't you? You'd call and scream and someone would look into it and someone would go off to jail and you'd get your money.

OK, so what about the bank adding a zero or two to someone's balance? Well, the problem there is that there's no incentive for the bank to do it, because they're giving away their *own* money.

See, every deposit is an asset. And every customer balance is a liability. When you have $1,000 in your account, that's a liability, because the bank owes you $1,000.

If they just "make up" money, then what happens is that they are adding liabilities without a corresponding increase in assets. So, there's no reason they'd *want* to do that, because that money comes out of their profit.