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The security of a blind signature depends on the fact that someone who does not know the serial number cannot learn its value. However, a man-in-the-middle attack can be used to record the serial number of a note and then produce a note with the same serial number.
If the server verifies its signature by matching the serial number to a list of serial numbers owned by that server, the server knows that the note was signed by someone who is authorized to use the particular server.
Once a user has learned that a server has verified its signature, the user can send the server an unlimited number of notes. This is the equivalent of a customer paying the bank for a stack of one-dollar bills, given to the bank by a vendor. The vendor takes the money to the bank and the bank gives the vendor a stack of bills with the same serial number as the bills the vendor originally received. The vendor can then take the bills to a vendor of his or her choice, who can use them like any other stack of one-dollar bills.
In a developing case in 1999, Australian police arrested a man for holding a database that included license plate numbers of all the cars owned by the partner of Australian tennis legend Bill Tilden. It was the first time a private citizen was sued for obtaining the personal information of another person. The Australian High Court ruled that the data was commercially sensitive, and the high-profile case was overturned. The plaintiff then sold the rights to the data and used it to finance his racehorse.
The liability for anyone who obtains personal information and uses it inappropriately is not clear. For example, a company that uses a third-party's data base of phone numbers would be liable for the use of the information, but it wouldn't have direct liability for obtaining the data.