The Art of Fraud

1. The Art of Fraud By Nabby

2. My Story (Movieberry.com February 8th ) (Screencrave.com February 8th)

3. Kelly Paxton – Private Investigator Before learning what I am about to show, I searched for an outside expert She had two big things to tell me Don’t give grandma an internet connection We need to educate each other about fraud through word of mouth and newspapers, which doesn’t happen enough http://www.financialcaseworks.com/home.html February 15th

4. Essential Question What are the most effective ways of limiting cases of fraud?

5. Early Stages of Fraud Medicine frauds took over when the pilgrims landed Moving west caused land fraud to skyrocket The frequency of the two frauds started to decline once people spread the word about them and laws were created to prevent fraud Con – Confidence The term was used in 1849 by American press when describing William Thompson, a man who would ask his victims if they had the confidence to lend him their watch http://www.bestscalemodels.com/Mayflower.jpg February 22nd

6. Fraud Now Fraud costs business and people around the world 600 billion dollars per year There are hundreds of different situations and schemes Being a con artist is a job 11.2% of the United States population has been a victim of fraud The average loss of money is over 200 dollars per person, but thousands can be stolen at a time http://www.yattermatters.com/wp/wp-content/images/2009/12/stealing-money-from-pocket.jpg February 22nd

7. Statistics Richard Titus, an entrepreneur, conducted a study based on fraud frequency He called over 1,200 people and listed off 21 different types of fraud schemes to see if any had been scammed 15% had been hurt by at least one of the schemes in the past year 58% of people had been hurt by at least one of the schemes in their lifetime

8. Not Being Open A study conducted by the AARP showed that around half of fraud victims were not open about being ripped off People are too scared to spread the word about fraud because it will make them look bad http://www.davidthedesigner.com/photos/uncategorized/2007/09/20/quiet.jpg February 22nd

9. Why Commit Fraud? There is no psychological trait that determines whether one commits fraud or not Financial strain Envy of others Ego fuels them Successful feeling It can quickly turn into a full time job http://www.2008tshirts.com/Assets/ProductImages/PS_0313_BENJAMINS.jpg February 22nd

10. Who Do Cons Target Me You Mom Dad EVERYONE But Most of all…..

11. http://jkander.files.wordpress.com/2009/11/grandma-at-computer.jpg?w=370&h=246 February 15th

12. Nigerian Letter Fraud Nigerian Prince needs his money He needs your money to access it Closely related to many common internet scams Easy way to lose retirement money http://i.ytimg.com/vi/Z1omofvWE5I/0.jpg February 22nd

13. Which Person Has Committed Fraud?

14. http://farm3.static.flickr.com/2288/2144041044_e6fff79b09.jpg February 11th, 2011

15. http://www.apmid.org/wp-content/conartist-300x282.jpg February 11th, 2011

16. There Is No Way To Tell Anyone can commit fraud. There is no certain look that a con artist has They use this to their advantage Looks are just an influence to the victim

17. Frank Abagnale http://www.parliamentspeakers.com/uploads/files/f8a16eef-1c09-4a04-b547-1313177ac220.jpg February 11th, 2011

18. The Danger You don’t know who they are You don’t know what they want until they take what they want They can steal from you in the safety of your own home

21. Too Good To Be True When things are too good to be true, they probably are This is the exact case with many of these fraud schemes There is a hope for receiving a large sum of money or profiting, and that hope pulls people deeper into debt If something sounds too good to be true, check it out. You have time to find out if it is legitimate or not When people aren’t aware of their situation they end up getting their money stolen

22. http://www.amoeba.com/dynamic-images/blog/Eric_B/dawson-crying.jpg February 15th

23. Profiling Con artists are prepared to rip someone off They look at their victims demographic How much money the victim has Are they married If they talk to the victim they try to find out their personality “Any people I don’t like I can hustle better.” – Anonymous Con Artist

24. Consumer Psychology When the victim is too greedy they put themselves in a fraudulent situation Con artists will try to make their victims commit a crime, therefore there is no lawsuit when the con steals Many cons themselves view others as people that are scheming and dishonest, exactly what they themselves are “If the victim never wanted anything from you, he’d never go so far as to get in the condition to be conned.” – Blum You can’t cheat an honest man Greedy people are scamming other greedy people

25. Not All Victims Are Greedy Senior citizens make up 12% of the United States population but 35% of all fraud cases They are easy to scam Using medical fraud is just as easy as it was when pilgrims landed Sometimes they don’t realize they’ve been scammed They don’t want to admit that they were scammed Family members might take control of their finances They don’t have as much money as most people, causing them to be hurt the worst Con artists don’t care about who they scam

26. How The Victim Feels Shameful Embarrassed They don’t want people to find out, and this is where a problem occurs They are too embarrassed to tell people, thereby not spreading the word about fraud http://1.bp.blogspot.com/__BdubNlqYtE/SXaYa155wnI/AAAAAAAAC3c/C7gZDsUEe44/s400/ashamed.jpg February 22nd

27. http://photos.upi.com/topics-10TH-MILKEN-INSTITUTE-GLOBAL-CONFERNECE-IN-BEVERLY-HILLS-CALIFORNIA/d987a0826220eed0f9bcfa58d9db7e73/M_1.jpg February 11th, 2011

28. Businesses Businesses are at just as high of a risk as the elderly They have more money to be stolen Fraud is intertwined with legitimate business, therefore making it easy to get away with This is called white-collar crime It is serious fraud that can cost people jobs The penalties are not strict http://larryfire.files.wordpress.com/2008/06/week32skyscrapers2.jpg February 22nd

29. White-Collar Crime Penalties Half of the convictions have fines of 5,000 dollars or less 20% of the convictions have fines of 25,000 dollars or less One fifth of the time they get away without probation Milken for example was told by his judge he should serve ten years. The people who control the company sometimes control who commits the crime Lawyers upon lawyers are ready to defend the major businessmen

30. Word of Mouth People aren’t warning each other about their mistakes Even the elderly are scared of telling others that they were scammed Newspapers aren’t writing about fraud Kelly Paxton used to work for a newspaper Get the word out, don’t feel embarrassed http://www.abcteach.com/free/n/newspaper_bw.jpg February 22nd

31. Penalties Are Not Strict Enough White-collar crime penalties are minimal It is hard to get convictions Convictions lead to minimal fines Convictions lead to minimal jail time With minimal punishments, people are not as scared about committing crime http://blogs.houstonpress.com/hairballs/monopoly-jail042710.jpg February 22nd

32. What Needs To Happen People must not be ashamed of being scammed Spreading word about fraud can only help Fines must be increased Jail time must be increased Fraud needs to turn into something that nobody wants to commit due to consequences