I'm starting off with a topic on scams by the con men, I call them as con stars as they are really good at art of deception. I have come across many of them.
Why talk about scams in blog related to money and investment?
I'll tell you a secret. The number one secret to get rich and stay rich...
"WEALTH PRESERVATION"
In financial planning, there are 3 main element:
1. Wealth Accumulation
– This is where you grow your money.
2. Wealth Preservation
– You make sure your money won’t evaporate into thin air.
3. Wealth Distribution
– How do you pass over your wealth to your next generation without them wasting all your wealth?
So, wealth preservation is as important as growing your money.
Imagine, after you have accumulated money through savings or some investment, someone approach you. They claim they have a real good deal for a new business venture, investment or even trainings which can create passive income and you never have to work again. You spend or invest your hard earned money. After several months or even years, "Poof!" your money disappears without a trace.
So, here are my list of 7 things you don’t know about SCAMS...
# 1: Anything can be turned in scam.
Really? How is it possible? Let’s look at some of the scams I have come across.
- Water machines ( I have personally lost some money here)
- Mobile prepaid cards
- Convert scanned images of a book into a word document
- Perfumes/Aromatherapy
- Travel
- Gold
- Oil/Gas
- Stones
- Chi Energy ( A "spiritual" con man transfer their accumulated chi to you for a price)
- Property/Real estates
- Coffee shop (MLM based coffee shop)
- Lucky draw
- MLM ( remember not all MLM)
- Investments
- Trainings
- Gambling
- Art/Paintings (This is the latest I came across. Please be wary)
Yes. A lot of scams are created legally or to look legally correct. They may deliver the product, but eventually you won’t able to make money or they sold you a crappy stuff. Due to the way they word the contract you signed, it’s very difficult for you to get back the money. They are good at using the loopholes in the law to protect themselves.
# 3: A scam not necessarily gives extra ordinary income.
Who still remembers Bernard Madoff? He managed one of the largest hedge fund involving billions of dollar. They never promised very high returns. It only made a return between 16% to 23% per year consistently. Because the return look possible and not extravagant, many starts to believe in his fund. Those who invested into his fund are not just ordinary people. There were bankers, well known investors and other fund managers. In the end it collapsed. No one could tell it was just a huge PONZI scheme. Even the authorities couldn't tell. It was exposed because one of his son revealed it to the authority.
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| Bernard Madoff. You'll be remembered for the greatest Ponzi scheme ever. |
# 4: The people working for a scam might not know they are working for a scam.
Many staff hired by scams are just like any other normal people working in any other normal companies. Even their salesman migth be thinking it's a legit company.
# 5: It’s difficult to differentiate between scammer and salesperson/picthers
Many technique deployed by scammers or con men are similar to good salesperson. Both are persuasive. Both knows who to use psychology to get you.
#6: Some are reputable public figures
Again, I'll mention Bernard Madoff. He was the NASDAQ Chairman. I have also met a Dato who claimed to be in Forex trading and very successful. He have written a book and looking forward to sell it and conduct some training on Forex trading.
But, guess what? He is successful in trading, using DEMO account, not a real live account using his own money.
#7: They used to be GOOD MEN
Huh?!? Good men! They might have started things with great ideas and intention. It might have been an idea which could make billions of dollar. So they get people to invest in them by promising great returns. But, something goes wrong and they couldn't make the money. They need to give the promised returns. Then, they start to devise plans by scamming people.
In fact, that's how the well known PONZI scheme started. Charles Ponzi, started with a great idea, which didn't turn up well as he planned, in the end he turned it into a scam. Btw, Charles Ponzi had been jailed for some offence before, so technically we can't call him good man.
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| Charles Ponzi (1920) |
It does seems like a scary world out there. How do we avoid this while making money?
The answer is...
KNOWLEDGE...
not just any knowledge
THE RIGHT KNOWLEDGE
I'll talk about the RIGHT KNOWLEDGE somewhere in the future. That's all for now. Hope you all gain something out of this.
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