Fraud

Fraud (What)

Fraud is the use of intentional use of misinformation (misleading or false information) for personal or financial gain, or to cause harm to another party by the use of false or misleading information.

Here are some examples of fraud.

  1. A business presents inaccurate financial information to boost the sales of their stock.

  2. Officials in the US government knowingly misled the public about the Vietnam war.

  3. A coder sends out a phishing email so that some targets will provide the coder with their credit card numbers, thereby allowing this coder to steal their money.

  4. Bernie Maddoff tricked countless savvy people into investing into what turned out to be a Ponzi scheme.

Skill with Fraud (Why Care)

  1. Fraudsters are good at what they do. Thus, their targets don’t recognize the fraud until its too late. Skill with fraud equips one to minimize getting victimized.

  2. Governments companies can engage in fraud. Skill with fraud equips one to recognize this.

Avoiding Fraud (How To)

Principles

  1. Most fraud involves a deal: you get X in exchange for Y which seems like a normal business transaction.

  2. Fraudsters promise things that their targets desire very strongly the thing you get is highly desirable. What you have to exchange often seems like a pittance.

  3. Fraudster excel at building trust, rapport, and connections with their targets. Fraudsters are often charasmatic.

  4. Many people are tricked and victimized by fraudsters; don’t expect that you won’t be.

Template

  1. Indicators: If something sounds highly desirable it may be fraud. , If something sounds too good to be true, it may be fraud. If you are pressed for time (make a decision today), it may be fraud. If it is wrapped around an actor (person or group) that can give you some

  2. Track Record. If an actor has a track record of not being truthful, be suspicious. If you cannot figure out who is behind the offer be suspicious. If you cannot not find out information about the actor be suspicious.

  3. Fact Checking. Do your homework.Determine if the facts presented are true. The presence of untruth are an indicator that you should walk away.

Tips

  1. Actors with good deals (great X for Y) don’t need present misinformation.