Tuesday, June 5, 2007

How Confident Are You?

The grade of one's "intelligence" is totally unrelated to one's grade of vulnerability to getting deceived by experienced con men. Confidence tricks exploit human weaknesses like greed, dishonesty, vanity, but also virtues like honesty, compassion, or the "naïveté" of believing in the existence of something called "good faith".

Just as there is no typical profile for swindlers, neither is there one for their victims. Virtually anyone can fall prey to fraudulent crimes. Movie actors and athletes, professional persons and successful business executives, political leaders and internationally famous economists have all fallen victim to investment fraud. Certainly victims of high-yield investment frauds may possess a level of greed which exceeds their caution as well as a willingness to believe what they want to believe. However, not all fraud victims are greedy, risk-taking, self-deceptive individuals looking to make a quick dollar. Nor are all fraud victims naive, uneducated, or elderly.

In the case of greed it often happens that the overconfident mark tries to out-cheat the con artist, only to discover that he or she has been manipulated into losing from the very beginning. This is such a general principle in confidence tricks that there is a saying among con men that "you can't cheat an honest man."

However, some tricks depend on the honesty of the victim. In a common scam, as part of an apparently legitimate transaction, the victim is sent a worthless check, which the victim then deposits. The victim is then urged to forward the apparent value of the check to the trickster as cash, which they may do before discovering the check bounces. Another fashionable scenario (as of 2006) has the victim recruited as a "financial agent" to collect "business debts". Paper checks are not always involved: funds may be transferred electronically from another victim.

Sometimes con men rely on naive individuals who put their confidence in get-rich-quick schemes, such as "too good to be true" investments. It may take years for the wider community to discover that such "investment" schemes are bogus, and usually it is too late, as many people have lost their life savings in something they have been convinced to invest in.


-From Wikipedia, the free encyclopedia

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