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Fraud and scams.md

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Fraud and Scams

Principles used by scammers

  • time principle: the victim is persuaded that they need to act quickly (before they can think rationally and exercise self-control)
  • distraction: make the victim focus on something else, e.g. a physically attractive accomplice
    • making the victim look at certain things
    • directing the victim's mind towards something else
    • talking to the victim
    • touching the victim's body
    • gradually breaking personal space
    • attentional overload
  • stimulation of deep desires: trick the victim with something they really want, e.g. in online dating
  • deference to authority: the victim is tricked into trusting an alleged authority, e.g. through the use of uniforms
  • exploit kindness: advantage is taken of the victim's willingness for voluntary (financial) support, e.g. after a natural disaster
  • appeal to innate dishonesty: make the victim act criminally themself through their reduced inhibition threshold, e.g. in Nigerian scam
  • herd principle: the scam is suggested to be legitimate by making use of people's tendency to act like their friends or people around them
  • pig-in-a-poke (information asymmetry): the victim thinks they are buying a "pig" when they are actually buying a "cat" hidden in the bag

Confidence tricks

Short cons (take seconds or minutes)

  • Shell game (sleight of hand)
    • scammer has three shells and a small coin
    • scammer places coin under one of the shells and shuffles them quickly
    • victim from the audience is asked to place a bet on the location of the coin for doubling or losing their bet
    • skilled scammer will never lose due to dexterity but must therefore remove coin completely and turn over shells themself
    • other people from the audience include
      • shills pretending to play the game and allegedly placing genuine bets
      • lookouts for the police
      • bouncers discouraging an easy exit
      • guards intimidating victims who become intractable
    • the audience also serves as a protection against photographers
    • when the police is approaching, all traces of the game can be removed in seconds
    • pickpockets may be part of the game as well so that when the scammers seem to run away from the police they're actually leaving with theft
  • Fortune telling
    • uses cold reading to trick victims into paying money for alleged fortune telling
  • Clip joint
    • trick played in an establishment (usually strip club or entertainment bar)
    • possibility of sex is often suggested
    • victim is tricked into paying money at excessively high prices
    • victim receives poor goods/service (e.g. watered-down drinks) — or even none at all
    • victim is later ejected
  • Dropped Wallet scam
    • scammer pretends to unintentionally drop their purse
    • victim picks up the purse in good faith and wants to return it to the scammer
    • scammer accuses victim of stealing, asks for "stolen" money to be returned and threatens to call the police
  • Badger game (extortion)
    • the victim (usually a married man) is deliberately coerced into a compromising position (usually a supposed affair)
    • the victim is threatened with public exposure unless blackmail money is paid
  • Thai gems
    • selling jewelry or custom-made suits — both overpriced — telling the victim they will make money by importing it to their home country
  • Coin-matching game
    • one operator begins the game with the victim
    • second operator joins and briefly leaves again
    • first operator agrees with victim to cheat on second operator
    • when rejoining, the second operator loses and angrily threatens to call the police
    • the first operator and the victim agree to pay hush money — later split up between the two operators
  • Fiddle game / Glim-dropper (pigeon drop technique)
    • first scammer goes to expensive restaurant and after eating finds out they have "forgotten" their purse at home (nearby)
    • first scammer leaves expensive and rare good (e.g. musical instrument) as collateral or pledge and goes to get their purse
    • second scammer arrives and approaches victim
    • second scammer claims they want to buy that rare item for a large amount (e.g. 10,000 USD)
    • second scammer "has to" leave abruptly for an appointment but leaves contact information
    • victim is to inform potential buyer when the owner returns
    • first scammer returns and wants to get back their collateral or pledge — but victim thinks they might make money now
    • victim offers the "owner" of the collateral or pledge a considerable amount (e.g. 5,000 USD)
    • victim buys the item in good faith and greed to make profit by re-selling it to the second scammer — who never returns
    • chronology of the discovery of the valuable item and the offer to buy may be swapped when second scammer claims to have lost something
  • Lottery fraud by proxy
    • scammer fakes an alleged winning ticket but claims not to be eligible for its redemption
    • victim buys "winning ticket" from scammer — and will later even be held criminally liable when trying to redeem it

Long cons (take days or weeks)

  • Spanish Prisoner scam / Nigerian scam
    • enlisting the victim to aid in retrieving some stolen money from a hidden place
    • taking advantage of the victim's greed
    • tricking the victim into believing into the existence of the money
    • preventing the victim from going to the police by making them act criminally themself which they would have to admit
    • luring with faked cheques that have a manipulated recipient but are otherwise genuine
  • Romance scam (advance-fee fraud)
    • cultivating romantic relationship with victim
    • making promises of a future marriage
    • beloved person is stuck in a foreign (usually their home) country and lacks the money to leave
  • Gandparent scam (fraudulent impersonation)
    • grandparent gets a call or message from alleged grandchild in trouble (abroad)
    • grandchild may be arrested in another country needing money to pay the bail
  • Fake antivirus / Fake support call
    • Computer users are unsolicitedly contacted by
      • scammers claiming to represent Microsoft etc.
      • alleged company behind antivirus software installed on their computer
    • scammers tell unsuspecting victim that they have problems/errors on their computer which must be fixed
    • victims may be tricked into
      • paying money for no service
      • actually installing viruses, malware or spyware
      • allow the scammers remote access to the computer
  • Fake casting agent scam
    • scammer pretends to be casting agent for a modeling agency searching for new talents
    • victim is told they need a professional portfolio — which requires an upfront payment
  • Fraudulent directory solicitations
    • victims (business owners) receive a solicitation from a business directory designed like an invoice
    • the scammers hope that the business owners fall victim to them by mistaking the solicitation ...
      • ... for an actual invoice and paying it
      • ... for updates/corrections that must be made to an existing entry (resulting the victim signing the document)

Online

  • It is ridiculously easy to buy fake reviews, likes and followers online. Be suspicious.