Steps in a con game 18

So, how does the con artist get you to invest the "real" money?  He already demonstrated that you can make money, and make money quickly and with a higher rate of return than normal investments.  This alone is enough to get the mark interested.  But - now they have to get you to take the real bait.

     One of the most common attempts to get the mark to get your money now is that "the time to invest is closing."  Once again, using Bernard Madoff as an example.  Madoff had people lining up to join his investment scheme.  He could pick and choose (at least, until the entire thing came crashing down).  So, when a person had a chance to invest with Madoff, it was made clear that the window of time to invest was only for a limited time.  The mark was lucky enough to be "chosen" to invest and people like Madoff did not have all day.  So - you either took the opportunity or you let it slip by.

     This type of "time pressure" should always be a red flag that something is wrong, especially if you are not give a chance to do your research.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Steps in a con game 17

Sorry for not posting yesterday.  Here in Houston the "Event of the Year" is usually the Houston Livestock Show and Rodeo and I had VIP passes to the event.  Best BBQ I have ever eaten in my life.  I was in no shape to write even a semi-coherent post and did not want to inflict my ramblings upon my readers.  So, let's move on to the next step in a con game - and the most important one.  How does the con artist get ALL or a good portion of your money?

     Well, at this point, the con artist has succeeded, or is well on his way to succeeding, to show you that he can give you a great return for your money. Far more than just some investment you can get anywhere.  Now - you can get a great deal of money from a small investment.  He has already shown you this as demonstrated by the previous steps.  Now, having been convinced, you are enticed to part with even more money.

   The con artist is set to show you that you need to invest money NOW.  Not just a few bucks here and there, but a REAL set of money.  Now, this is where you are shown that you can start raking in the real money, but only for "real" investors like yourself.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Interludes

Some stories are just too good.  Semi-repeat of a post from yesterday.  This is too good!

http://www.todaysgist.com/2012/02/australian-woman-turns-tables-on.html

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Interludes

Some stories need no comment and just write themselves.  This is one of them.

http://news.yahoo.com/blogs/sideshow/australian-woman-turns-tables-nigerian-scammers-175755518.html

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Steps in a con game 16

Keeping on the topic of getting and keeping the investor interested - one of the best giveaways that the entire scheme is a con game occurs when the payoff is made.  Remember - this payoff is only designed to whet the appetite of the investor so he redirects his profits directly back into the scheme.  This is the part and parcel of the whole game.

     Therefore, when the investor gets his money back, and as he is thinking "what a great deal," there is a large amount of pressure put on him by the con man and the third person (and anyone else in this scheme) to reinvest. Most of these appeals will be direct appeals to mark's desire to make money ("Wow - you're already making money.  Just think of how much more you can make with more money").  This is, of course, a powerful incentive.  Another basic appeal is to the mark's vanity ("remember -this investment is only for smart/special/unusual people like yourself that can spot a great deal").

    Come-ons such as these are dead giveaways that something is not right.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Steps in a con game 16

Let's stick with the topic of allowing the investor to get some money for a minute.  Keep in mind that not all scams work this way.  For example, the infamous Nigerian 419 scam (sent out via email) does not actually pay off any money at all - it just keeps enticing the mark to send more and more money by using a greater variety of excuses for not paying each time.  The difference between the Nigerian 419 scam, however, and other scams, is that the 419 scam relies on many potential marks (remember from earlier posts that "phishing" emails are sent out by the hundreds of millions).

     For the most part, however, an fraudulent investor scheme will have to rely on having to pay the mark some money to get him interested and get him coming back to the table.  Only through this method can the mark begin to believe that the entire scheme is legitimate.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Steps in a con game 15

Remaining on the theme of how much money to invest.  Remember, the con artists want to make the mark invest as much money as possible.  But, most people will not invest 100% until some level of trust is established.

     So, it is not uncommon for the con artists to get the mark to invest money in the scheme, and since the initial investment is not what the con artists want, to get a return on the investment for the mark.  This is a scheme, of course, to get the mark to invest even more money in the scheme.

     Remember, even Bernie Madoff paid investors initially.  The pyramid scheme that he ran did not just take the money and run - the investors were paid back their money and then some - in an attempt to get the investors to invest even more money in the scheme.

     This creates a self-perpetuating loop - the mark will invest money in the scheme, then get a payoff, and then invest more money in the scheme.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk