Scam


A scam, or a confidence trick, is an attempt to defraud a person or group after first gaining their trust. Confidence tricks exploit victims using a combination of the victim's credulity, naivety, compassion, vanity, confidence, irresponsibility, and greed. Researchers have defined confidence tricks as "a distinctive species of fraudulent conduct... intending to further voluntary exchanges that are not mutually beneficial", as they "benefit con operators at the expense of their victims ".

Terminology

Other terms for "scam" include confidence trick, con, con game, confidence game, confidence scheme, ripoff, stratagem, finesse, grift, hustle, bunko, bunco, swindle, flimflam, gaffle, and bamboozle.
The perpetrator is often referred to as a scammer, confidence man, con man, con artist, grifter, hustler, or swindler. The intended victims are known as marks, suckers, stooges, mugs, rubes, or gulls. When accomplices are employed, they are known as shills.

Length

A short con or small con is a fast swindle that takes just minutes, possibly seconds. It typically aims to rob the victim of their money or other valuables that they carry on their person or are guarding. A long con or big con is a scam that unfolds over several days or weeks; it may involve a team of swindlers, and even props, sets, extras, costumes, and scripted lines. It aims to rob the victim of a huge amount of money or other valuables, often by getting them to empty out banking accounts and borrow from family members.

History

The shell game dates back at least to ancient Greece. William Thompson was the original "confidence man". Thompson was a clumsy swindler who asked his victims to express confidence in him by giving him money or their watch rather than gaining their confidence in a more nuanced way. A few people trusted Thompson with their money and watches. Thompson was arrested in July 1849. Reporting on this arrest, James Houston, a reporter for the New York Herald, publicized Thompson by naming him the "Confidence Man". Although Thompson was an unsuccessful scammer, he gained a reputation as a genius operator mostly because Houston's satirical tone was not understood as such. The National Police Gazette coined the term "confidence game" a few weeks after Houston first used the name "confidence man".

Stages

In Confessions of a Confidence Man, Edward H. Smith lists the "six definite steps or stages of growth" of a confidence game. He notes that some steps may be omitted. It is also possible some can be done in a different order than below, or carried out simultaneously.
;Foundation work
;Approach
;Build-up
;Pay-off or convincer
;The "hurrah"
;The in-and-in
In addition, some games require a "corroboration" step, particularly those involving a fake, but purportedly "rare item" of "great value". This usually includes the use of an accomplice who plays the part of an uninvolved third party, who later confirms the claims made by the con man.

In a Long Con

Alternatively, in The Big Con, David Maurer writes that all cons "progress through certain fundamental stages" and that there are ten stages for a "big con."
  1. Locating and investigating a well-to-do victim.
  2. Gaining the victim’s confidence.
  3. Steering him to meet the insideman.
  4. Permitting the insideman to show him how he can make a large amount of money dishonestly.
  5. Allowing the victim to make a substantial profit.
  6. Determining exactly how much he will invest.
  7. Sending him home for this amount of money.
  8. Playing him against a big store and fleecing him.
  9. Getting him out of the way as quietly as possible.
  10. Forestalling action by the law.

    Vulnerability factors

Confidence tricks exploit characteristics such as greed, dishonesty, vanity, opportunism, lust, compassion, credulity, irresponsibility, desperation, and naïvety. As such, there is no consistent profile of a confidence trick victim; the common factor is simply that the victim relies on the good faith of the con artist. Victims of investment scams tend to show an incautious level of greed and gullibility, and many con artists target the elderly and other people thought to be vulnerable, using various forms of confidence tricks. Researchers Huang and Orbach argue:

Online fraud

Fraud has rapidly adapted to the Internet. The Internet Crime Complaint Center of the FBI received 847,376 reports in 2021 with a reported loss of money of $6.9 billion in the US alone. The Global Anti Scam Alliance annual Global State of Scam Report, stated that globally $47.8 billion was lost and the number of reported scams increased from 139 million in 2019 to 266 million in 2020.
Government organizations have set up online fraud reporting websites to build awareness about online scams and help victims make reporting of online fraud easier. Examples are in the United States, Australia, Singapore, United Kingdom, Netherlands. In addition, several private, non-profit initiatives have been set up to combat online fraud like AA419, APWG and ScamAdviser.
The top countries for online fraud are Russia, Ukraine, China, the United States, Nigeria, Romania, North Korea the United Kingdom, Brazil and India.

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