Monday, January 2, 2012

Running with the Cons

I’ve always enjoyed the genre of story of the ‘noble’ criminal.  The thieves that have reformed and are using their talents for good or at least you can really like them as they use their talents for bad.  Examples such as Oceans Eleven, Leverage, Hustle, etc.

But watching the shows there is always the criminal patois going on that, while very cool, I just didn’t understand.  So I started to poke around and learn what some of it meant.

My first foray was to learn more about the basic types of confidence scams.  There is A LOT of different types of confidence scams, but here are some of the basic ones:

The Ponzi Scheme:
Fake investments.  The con-artist uses some of the money from new ‘investors’ to provide ‘dividends’ to the other investors to make them believe their investments are prospering.  Meanwhile the con-artist steals any of the money coming into the con that he doesn’t need to keep the marks convinced.

The Spanish Prisoner:
Advance fee fraud.  The con-artist tricks the mark into believing that a ‘modest’ investment now will result in a big payday down the road.  Unlike the Ponzi Scheme this is a take the money and run con not requiring the long-term commitment of a Ponzi scheme.

The False Samaritan:
The con-artist’s version of good cop, bad cop.  The “bad” artist runs an action on the mark and the “good” artist, acting as an innocent third-party, intervenes to ‘save’ the mark.  At basic levels this could be a simple mugging where the good artist scares away and recovers the stolen property in hopes of a reward.  More complex cons may use the False Samaritan to place the good artist into a position where the mark trusts or feels obligated to her to set up a larger con.