Tuesday, October 4, 2011

James Randi and Fraud Prevention XII

So - we reviewed the difference between a fraudulent financial "professional" and a real one and, specifically, how cold reading works into all of this.

     And - I think we come to the same conclusion.  A real financial profession is interested in what YOU want, what are your goals as the client of a real financial professional, and so will ask questions designed to elicit the information from you to help you meet your goals.

     A fraudulent financial professional will use techniques such as cold reading to make you think you are the one making the decision when, in actuality, the fraudulent financial person is leading you down the path he wants.

     Once uses a method to collect information from you that allows you to think and plan.  The other uses a method of overwhelming you with information (questions) which are designed to shut down your ability to think and only to force you in one direction.

     Cold reading is a great parlor trick, but it is also a method used in fraud.  Being aware of how it is used for fraudulent means is a way of detecting it.

Have a great and fraud free day.

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