NCJ Number
198763
Journal
White Paper Volume: 17 Issue: 1 Dated: January/February 2003 Pages: 35-38
Date Published
January 2003
Length
4 pages
Annotation
This article discusses investment swindles and “con schemes” made possible by the use of the Internet.
Abstract
After arguing that millions of individuals are victims of con schemes each year, the author indicates that there are no clear perpetrators of these crimes, although the individual swindlers responsible for investment and other cons are typically looking to “get rich quick.” Maintaining that situational pressure, perceived opportunity, and rationalizing the act are effective ingredients leading some individuals to devise con schemes, the author suggests that consumers typically fall prey to these crimes because they possess a trusting nature. Summarizing the red flags that typically signal con schemes, the author discusses advance fees required with cash, credit cards, or checking account numbers, promises of substantial profits, promises of little or no risk guaranteed, a sense of urgency in responding, little or no experience required, and no available refunds as clear indicators of investment scams. Noting that con artists tend to be skilled marketers capable of devising effective strategies targeted at trusting individuals, the author contends that everyone is a potential victim. Arguing that consumers fall victim to investment schemes through a variety of media, the author discusses the proliferation of junk e-mails, Internet junk bond scams, and Internet zero coupon bond scams as some of the most effective fraudulent schemes that entice consumers.