Yep, I simplified
It's a simple system with, as you say, a lot of potential for scams and greed. OTOH, there is bound to be someone out there who will milk anything for profit through scam. They scam charities, steal food that was supposed to go to hungry children. Sometimes I detest the human race! We really deserve to go the way of the dinosaurs. We can't quit cheating, murdering and fouling our planet.
OK, rant over... for now. :-)