Setting the Context

The best way to keep your money safe is to educate yourself about what to look out for.   Let's begin by defining two words, "fraud" and  "con artist."   A con artist is a professional liar who steals money -- a person who defrauds or swindles other after gaining their confidence.   

The words associated with the word "fraud" include:   charlatan,  cheat,  con  con artist,   counterfeit,   deception,   fake,   flim-flam,   fraudster,   hoax,   hoaxer,   imitation,   imposter,   lair,   phony,   pretender,   quack,  racket,   scam,   scheme,  sham,    swindle, swindler,   and wooden nickel.  

Needless to say,  you don't want anything to do with this type of person  

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Con Artists  

We commonly think of con artists as greasy slime balls cheating little old ladies out of their life savings.   Although this type of thing does occur, grandma is not the typical target of a slick con artist.   The con artist's main targets are intelligent, professional people in their forties and fifties with money who think they know what's going on.  

The big-money con artists are silver tongued liars who give the impression of being very credible, businessmen.   They generally use a common set of techniques in dealing with those they intended on swindling.   The targets for fraud are called marks.  

The con artists join clubs and social groups and/or they make a lot of phone calls (or have an assistant call) looking for potential marks.  

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Are You Vulnerable?  

Here are some of the common characteristics of the people likely to get taken in by a co artist?   

1)   He (or she) is commonly a well-educated professional with money.  

2)   He's busy with his work and really doesn't have a lot of time to investigate financial investments.  

3)   He feels that, financially, he is not a well off as he intended to be at his age.  

4)  He has a tendency to engage in risky behavior.  

5)   He can be conned into turning off his mind and making the decision based upon emotion.  

6)   The mark usually knows better than to do what he's about to do.   Unfortunately, his mind gets razel dazzled by emotions.   At that point emotions overpower thinking.  

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Con-Artist Attributes and Tactics  

Phantom Riches and Fake Credibility:   The financial program is a complete phony.   He fakes his credibility with false documents.   He commonly pays money to the initial investors so that the program looks real.   The money he returns to the initial investors is not from profits.   It's money form his newest investors.  He can then say, look at the money prior investors have already made.  

He makes promises of big returns in the future.   His goal here is to shift the mark into choosing by emotion and not by logic. 

Phony Friendships:   The con artist will often belong to a church or social club where he can find likely prospects.  His goal is to create the impression of social credibility.  

He'll make friends and appear as Mr. nice guy.   He'll spend time becoming acquainted with the person, gathering as much personal information as possible.    Although his talk is completely phony, his goal is to give the impression that he is becoming your friend and is willing to be your financial helper.   He'll make contact with his intended victim several times and ask a lot of personal questions.  (Remember, the person asking the questions controls the conversation.)   His goal is to create an emotional connection between himself and the mark.   (Emotions derail the thinking process.) 

Do-Do Doing What Other's Do:   The con here to get the mark to just go along what others are doing.   The logic is:  "If many other people are handing over their money to this professional financial investor, then both he and the investment must be OK."   This is common in social groups such as churches.   (The typical attitude toward the con artist before he is exposed is "This man [the con artist]is born-again true believer, he couldn't possible be cheating anybody."  

You Owe Me a Favor:   (reciprocity)   Another factor to keep in mind is that the con artist will give the mark something of minor value, such a free dinner.   Giving the mark something, triggers an internal emotional feeling of being obligated and wanting to give something back to this kind man who just gave me a _whatever_  

In reality the con artist didn't give you anything.   He uses the technique of giving a small gift to hook his marks into feeling obligated.   This also helps by creating familiarity.  People don't just give anybody a free dinner, so I'm important to him.  

Fake Scarcity and Fake Urgency:   It's rare.   Time is of the essence.   Act now because these ____ are selling fast.   "There not another deal like  this anywhere, so you have to buy now because by tomorrow it will be sold to someone else."   Here the con artist is creating the illusion of greater value.   Scarcity and urgency increase the emotional level and interrupt the rational thought process.  

You've undoubtedly run into the urgency technique at your local stores  -- Buy now while it's "ON SALE."  Did you ever come home with stuff you didn't need simply because bought it at the sale price? 

Secrecy:  What do you really know about where your money is going?   If you are asked to sign a confidentiality agreement, that's a red flag waving in your face.  

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Avoiding the Con  

To avoid being swept away in an emotional wave, there are some things you can do.   Begin by checking out the person offering to let you in on his investment program.   Is he licensed with the Investment Exchange Commission?   Ask about his background.   Check out his references.   If he isn't licensed, if he won't let you check his background, end the connection immediately.  Be aware that he may have all of the above and still be a con artist.   Con artist, Bernie Madoff, fits this description.  

The second major thing to consider is your financial position.   What would happen if the money you intend to give him vanished in some kind of fraud.   Can you afford to loose your entire investment?  What would that loss do to you physically, in terms of your life style?   What would a loss do to your mental and emotional state of being?

Another thing you can do is look for the con artist attributes and tactics described in the above section.   For example, is he pushing scarcity or urgency?  

Also, avoid high risk investments.   Avoid complicated investments.   If you don't understand it, don't invest in it.   Avoid big promises.   Avoid taking advice from your family and friends.   Take control of the conversation by asking a lot of questions.  

When it comes to the bottom line, and before you invest, ask:   "Is this decision emotion driven?"   If there is a significant emotional content, back off an see advice form other financial professionals.  

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The entire financial system, as it presently being managed, (2010) is a complete fraud.   Anybody who is advising you to invest in any product that is held in the form of promises to pay is a fraud.   Investment such as stocks, bonds, and the Wall-Street-peddled financial-investment packages are all promises to pay you dollars at some future date.  

Unfortunately, everything financial, today, is based on a fairytale, make-believe, monetary system where the super wealthy bank owners charge customers interest for the use of their non existent, make believe (fiat) money.  

But, please don't believe us.   Examine the evidence for yourself.   You are invited to examine our non-technical, down-to-Earth, easy to read, and easy to understand  websites devoted to money and finance.  

TLC-Life-Center's twelve websites related to money:
       TLC-Life-Center's Sixty-Six Websites        

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We have an entire website devoted to how Con artists function   http://www.ConArtist-Con-Artist.info#62  

Also check these pages:

Refernce 1:-- Finding the Wolves in Sheep's Clothing  

http://www.lifecoach4vip.com/trp80w-finding-wolves.html#11    >

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Refernce 2:   - -Confessions of a Con Artist >

http://www.pro-truth.net/70a-recognizing-evil.html    >

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