Internet Scams, Con Artists and Con Games

While some people imagine a shady, unsavory character when thinking of con artists, in many cases, the most successful con artists are those who look and act "normal" and unsuspicious. In addition to traditional scams, many of today's most successful cons are those in which you never see the person stealing your money or personal information. Unfortunately, the Internet can provide the perfect arena for con artists to try to scam you.

Confidence (Con) Artists

A con artist, short for confidence artist, is someone who swindles people out of their money through manipulation or deceit. To successfully manipulate someone, you have to make them trust and depend on you.
 
As a result, savvy con artists will go to great lengths to learn your weaknesses, your desires and your comfort zones, tailoring their message and methods to suit your particular situation. Most con games are ones in which the con artist present themselves as having the only solution or an offer that you can’t refuse.
 
Con artists rely on high-pressure sales tactics to get you to part with your money. By making you feel helpless or hurried, they can convince you that you need what they are selling and that you need to buy it from them. They will stick around long enough to take your money and then leave before you realize you have been swindled. Since con artists typically operate on lies, they are often on the move, fleeing from the recently victimized and searching for new victims to scam.

Common Types of Cons, Scams and Fraud

Here is a look at some of the most common con games that con artists use to trick you out of your money, personal information or other valuable commodities. Con games may include:
  • Business Cons: The term "business" is used loosely here because these types of cons are hardly ever associated with a legitimate company. Rather, smooth-talking scammers push products or services that are non-existent or faulty.

    Some examples of these include pyramid schemes through chain-mail, "pump and dump" stock inflation scams or home improvement scams from traveling contractors. In all cases, the victim is saddled with faulty goods and financial loss.
  • Internet Cons: Working primarily through email or sales websites, Internet cons send a message to potential victims that they are either in danger of having their information compromised or that they are being offered a unique opportunity.

    Internet scams that come through email can be a message for a special offer, a request to confirm personal information or an offer of great rewards in exchange for financial assistance. Other Internet scams involve counterfeit checks or shipping schemes through private-party sites like eBay.
  • Loan Cons: Targeting people who are slipping on credit card or house payments, loan cons will offer products to those seeking an alternative to foreclosure and bankruptcy. These cons offer to relieve you of mortgage or debt in exchange for the equity in your home or a large fee. Oftentimes, such services are debt traps that make you even further behind on your payments or force you into foreclosure.

  • Street Cons: Street cons employ artful deception and trickery to garnish small amounts of money from passers-by or business staff. Magic tricks, two-person setups or seemingly innocent requests are just a few of the methods con artists use to pull off street cons.

Caught in the Act: Tips for Avoiding Con Games

Many of the offers that con artists present will sound enticing and even legitimate. To help you determine a con game from an honest offer, here are a few things to keep in mind:
  • Ask for documentation: A legitimate salesman or company will have valid documentation readily available. Ask for proof of licenses, identification, contact information and other forms of verifiable information in writing. Write down license plate numbers and other obvious identifiers, and check for legitimacy before giving away money or personal information.

  • Avoid solicitations: Few legitimate businesses will resort to cold-calling and door-to-door sales as their main method of garnering new business. Likewise, solicitations for personal information or other disclosures should be disregarded immediately.

  • Contact banks and/or brokers: If there are banks or brokers involved in the deal, but the person offering you the deal prohibits you from contacting them, the offer is probably not legitimate. You should be able to contact any company offering you a loan or some other deal.

  • Ignore fear tactics and emotional appeals: In all legitimate deals, you should be provided with all the facts and figures you need to make a decision. You may be dealing with a con artists if you are asked to make a decision in a hurry, if you feel scared or intimidated at the prospect of saying no or if you find that you are making a decision based on emotions rather than facts.
The best way to avoid being sucked into a con game is to always critically examine any offer that makes outrageous or questionable claims. The honored adage is often correct: If an offer sounds too good to be true, it probably is a con.
 
Miracle cures, fortune and fame, insider information or below-market pricing should always be viewed with suspicion. Quality products and services will typically come with a corresponding price. If you’re willing to take a risk in exchange for a great deal, you may find that, in the long run, the costs exceed the savings.
 
Even the most prudent individuals are not immune to a really good con artist. Smooth talk and sharp dress can give almost anyone the image of being credible and legit. By taking precautions with financial transactions and verifying the information you are given, you can keep yourself from becoming a victim to all types of con games.
 
Resources
 
Fraud Aid (n.d.) What a Con Artist Will Tell You. Retrieved March 15, 2008, from the Fraud Aid Web site.
 
Grabianowski, Ed (n.d.). How Con Artists Work. Retrieved March 15, 2008, from the How Stuff Works Web site.
 
NASAA Fraud Center (n.d.). How to Spot a Con Artist. Retrieved March 15, 2008, from the North American Securities Administrators Association Web site.