Pyramid Schemes

Scammers are calling consumers and falsely identifying themselves as Bank of America employees. In this scam, they explain that there are “irregularities” with their account and need to confirm their account information. They will then proceed to ask the consumer for their account information and other personal info that will help them gain access to the consumer’s account. If the consumer responds with skepticism, the scammer may then try to scare or intimidate the consumer into giving up the information they

Ponzi Schemes also known as a multi-marketing organization are white-collar crime; it is essentially an individual swindling a quick investment from new investors. Always ends up with investors or victums losing “their shirt” all the profits and many cases the company and is bankrupted and the owner ends up in jail. Two very highly successful Ponzi schemes are Primerica group and Amway. Primerica Group sells insurance and financial services and Amway sells heath insurance, but it doesn’t matter what they sale, its all about recruitment. They take your hard earned money and invest it into there business for a bigger profit in the future for a retirement but many people who try to get some of there money back for emergency are sadly mistaken

Madoff’s case taught many life lessons. The first would have to be, diversify. Many people should not put all of their golden eggs in one basket. Even though it is easier to invest money within one firm, it is best to disperse the money to avoid losing it. Secondly, if it is too good to be true, it is probably not true. Madoff had said he made ten to twelve percent a year in good or bad markets. That is impossible; otherwise,

Nowadays, there is an abundant amount of scams so anyone can be caught up in fraud by con artists. Common scams that are in our lives include, online-dating site deceptions, debt-collection scams, fake rental ads, and non-existent

Kickback schemes are considered fraud as well, even though in many businesses it is common practice to reward people who refer others to a business.

Lack of Understanding Victimization. When a victim has no relationship with outsiders, this causes them to depend on their leader, which can lead to the issue of one not knowing they are a victim of a serious crime (Clawson et al., 2009, p. 18). Many female victims see their pimp “as their boyfriend and everyone else as the enemy”, and that is exactly what the trafficker wants them to think (Clawson et al., 2009, p. 19). The dealer knows that they need to have their victims trust, so that the females can be persuaded into the trap of human trafficking. For some victims, they have no home and been in trouble with law enforcement before because of prostitution, which leads them to distrust authority (Clawson, 2009, p. 19). These types of victims may refuse to be open with law enforcement, as they do not want to be convicted of a crime, and see themselves as the

Other frequently used strategy is where attacker targets a specific group of audience to make the scam more real, and send email to trigger to immediate response.

Nevin Shapiro, the former owner of Capitol Investments USA, Inc., is currently facing charges that he ran a $900 million ponzi scheme. The modern day schemer has pleaded guilty to count one of money laundering. The term Ponzi refers to “an investment scheme or a scam designed to separate investors from their money” (Jackson, D., 1993). It is named after Charles Ponzi, who constructed one such scheme at the beginning of the 20th century, even though the concept was well known prior to Ponzi (Jackson, D., 1993). On 1927, while in Boston, Charles Ponzi concocted a mail fraud in which he said he would pay investors $1.30 for each dollar they invested. He claimed to make money playing “fluctuation” in overseas postage rates, but he actually paid

Schneeweis &Szado (2010, p.9) suggested that ffinancial fraud in general and Ponzi schemes in particular continue to maneuver investors. A Ponzi scheme is frequently described as a securities fraud in which the investment manager is in fact taking money from new investors to fund redemptions from current investors. These strategies are often discovered when new investors cannot be found to offset redemptions from current investors. The Ponzi method received its name from Charles Ponzi, who marketed an investment based on managing the International Postal Reply Coupons. Ponzi suggested that an arbitrage opportunity existed because he could exchange U.S. dollars into the necessary foreign currency, and use the foreign currency to purchase postal reply coupons. The postal reply coupons could be redeemed for U.S. postage stamps, which could then be sold for U.S. dollars. Ponzi promoted unusually high returns to investors when in fact he simply used the new investment to pay of the previous investors. While the scheme soon collapsed, there are similarities between him and the Madoff scheme. For example, Madoff sold primarily to the Jewish community and also Ponzi sold primarily to the immigrant community of the North End of Boston, to which he belonged. Along with that, the validity of Madoff's strategy was a subject argued by the public press (Barron's) as well as by individuals (Markopolus) on the grounds. Comparable to Ponzi's investors, Madoff’s investors, have received

As we drill down into the world of identity theft a little deeper, the Association of Certified Fraud Examiners (ACFE) uses Cressey’s, “Fraud Triangle”, to assist in explaining fraud and how it can be applied to identity theft as there are three (3) factors in the triangle: Pressure, Opportunity, and Rationalization. (ACFE). In the pressure stage, this is usually the motivation of the crime. In the Opportunity stage, the would be criminal has an open window if you will to gain the vital information of the victim. In the final stage of rationalization, the would be criminal now transforms themselves into a modern day Robin Hood where they steal from the victims and give to the poor or in this case; the greedy.

Scams can destroy any human life and destroy them emotionally, physically and financially. Fraud was labeled as a victimless crime. Years ago fraud was labeled as a victimless crime. Victims were usually considered to be dupes who allowed themselves to be fleeced by smarter people, dubbed con artists. People even more advanced that are criminals can be called a homicidal artist. People that are attached to murders, armed robber, etc. Another type of fraud is when criminals propose or inflate returns which they either know they can't keep or just ignore, this is otherwise known as the Ponzi scheme. If the person has had a financial loss and wants to make quick and easy money, also if they are greedy, they can use the Ponzi scheme. A ponzi

This paper introduces Bernard L. Madoff a fraudster who orchestrated a multi-billion dollar Ponzi scheme. The paper discusses elements that make up a Ponzi scheme and explains what a Ponzi scheme is. The paper goes on to introduce some of the victim’s and examines some reasons why someone might fall victim to a Ponzi scheme. The paper describes the three elements making up the fraud triangle and how they relate to the fraud and the fraudster. This paper covers Bernard Madoff’s background and history and how he committed the fraud analyzing the fraud triangle. The paper describes ways to correct the issue, accounting principles violated, and recommendations for a fix. Finally, the paper looks at internal and external controls violated and ends with a conclusion.

A Ponzi scheme is an illegal business practice in which new investor’s money is used to make payments to earlier investors. In many Ponzi schemes, the fraudsters focus on attracting new money to make promised payments to earlier-stage investors and to use for personal expenses, instead of engaging in any legitimate investment activity. The returns are repaid out of new investors’ principal, but not from profits. This can continue as long as new investors line up with cash, and old investors don’t try to withdraw too much of their money at once.

Moneymaking scams are becoming very popular in recent years. One would like to believe some things in life are sacred. Religion is where billions of people invest their hopes, dreams, beliefs, and most importantly,

Earlier Scams are restricted to some fields but now they are taking place in every field at any incidence of time. Scams are creating a doubt for us whether to believe to business, corporate companies and even our neighbours. These days corporate scandals are increased in frequency and severity, we are even believe them and guess the effects of them, we can call corporate scam as white-collar crimes . The scams like Enron, WorldCom, Satyam and Augusta helicopter scams are few examples of biggest frauds in the last two decades.