Who Can Fall for This?

 One of the biggest issues facing Singapore these days is a proliferation of scams. Although we’re not having babies, we are clearly getting screwed left, right, centre and sideways. Some of the scams are really sophisticated. With today’s technology, its easy for you to fake official documents.

 

 However, while large sophisticate scams make sexy headlines, the truth is that a good number of scams actually involve the telling of impossible tales. I think of a group which asked my small firm if they could liquidate a company. When I interviewed the guy, he said he was told that if he lent the company money, they would lend it to the banks who would then pay a higher interest rate than what they were paying on deposits. The company would then split the difference. I then probed and asked if the company was regulated by the central bank or any other regulatory authority. The answer was no. Made the guy repeat the story several times, where upon he said “that sounds really bad.”

The story on its own would not have been so bad had it been left to the group of professionals who invested. The tragedy was that scam artist managed to get their initial investors to get their elderly relatives to sell their assets to invest. Hence, not only did a group of educated professionals get scammed, a group of pensioners ended up getting screwed too.

Scam artist operate on the same rationale that most businesses run on – which is, why stop it when it’s generating money. So, when you get a call from a US number claiming to be from this or that government agency and wonder “who the hell would fall for this. “– the answer is obviously enough people.

Another example of a scam was best summed up by the Old Rogue (bless his soul). It was called “Buy a job.” The Old Rogue’s idea was simple – pay me a sum of money and then you go out and make us much money as you can. Again, you might ask – who falls for this? The answer as is shown, is obviously plenty of people:

 

 

 

Why do otherwise intelligent people fall for tall tales? I guess the answer is greed and an inability to look beyond the glitz. I’ve had to stress to my mentee on more than one occasion that he needs to look less at the glamorous condos or the flashy cars and how they so and so managed to afford the glamorous condo and/ or the flashy car. As a rule of thumb, scammers know that they have to look good and make it a point to make you think that they are credible. Let’s face it, a man who has the appearance of doing well, always sounds that bit more credible.

So, they key is to never get caught up with the outward appearances of success. So, when you look at a flashy car, ask yourself how it was paid for. Is the person in that flashy car asking you to pay for it?