How To Spot a Con Artist

Provide by the American Associtation of Retired Persons
Washington, D.C.

The Con Artist
The clever con artist is a good actor who disarms his victims with an affable 'nice guy' approach. But behind this friendly exterior is a shrewd psychologist who can isolate potential victims and break down their resistance to his proposals. Each conquest is part of a game in which he must 'best' his fellow man. The typical con artist is amoral-but seldom violent, and mobile, with an excellent sense of timing. He sincerely believes his victims deserve their fate. And, if caught, he'll probably strike again later. Con artists are seldom rehabilitated.

The Victim
Anyone can be a victim - even a person who considers himself too intelligent or sophisticated to be 'conned.' During the 1920's, 'Yellow Kid' Weil routinely swindled bankers, saying "that's where the money is." Many victims share certain characteristics. Often, but not always, they are older, female, and live alone. They are trusting of others - even strangers - and may need or desire supplemental income. Loneliness, willingness to help, and a sense of charity are characteristics a con artist will exploit to gain a victim's cooperation.

The con artist ultimately will exploit his victim's assets - including life insurance benefits, pensions or annuities, 'nest eggs,' home equity, or other tangible property. And he'll usually obtain the willing cooperation of his victim to complete his scheme.

Key Words
A con artist is difficult to detect by looks alone. But you can often spot him by his words or expressions, including:

CASH ONLY: Why is cash necessary for a proposed transaction? Why not a check?
SECRET PLANS: Why are you being asked not to tell anyone?
GET RICH QUICK: Any scheme should be carefully investigated.
SOMETHING FOR NOTHING: A 'retired' swindler once said that any time you are promised something for nothing, you usually get nothing.
CONTESTS: Make sure they aren't a 'come-on' to draw you into a money-losing scheme.
HASTE: Be wary of any pressure that you must act immediately or lose out.
TODAY ONLY: If something is worthwhile today, it's likely to be available tomorrow.
TOO GOOD TO BE TRUE: Such a scheme is probably not good or true.
LAST CHANCE: If it's a chance worth taking, why is it offered on such short notice?
LEFT-OVER MATERIAL: Left-over materials might also be stolen or defective.

Schemes

The list of fraudulent schemes is endless, but some of the more common con games involve:
HOME IMPROVEMENT

home repair/improvement
city inspector
termites/pests

BANK RELATED

bank examiner
pigeon drop

INVESTMENT

franchise/vending
land frauds
inventions
security investments
work-at-home

POSTAL FRAUDS

chain letters
magazine subscriptions
unordered merchandise
correspondence courses

OTHERS

bait and switch
charity rackets
computer dating
debt consolidation
contracts
dance lessons
freezer plans
psychic fraud/fortune tellers
health clubs
job placement
lonely hearts
medical quackery
missing heirs
referral sales
talent scouts
pyramid schemes
fake officials

Some Rules

Always investigate before investing money or signing a contract.
Be suspicious about extraordinary promises of high or unusual monetary returns, or a 'bargain' no one else can match.
Don't discuss your personal finances or give cash to strangers.
Don't be too embarrassed to report that you've been victimized or swindled.
Testify in court, if asked, to help stop this kind of crime.

The Con Game
Most successful con games are old schemes updated for today's circumstances. The old 'salting the gold mine' scheme is still being practiced, for example, but today's 'salting' occurs in living rooms, not abandoned mines.

In the old ruse, you may remember, unscrupulous mine owners would place a few gold nuggets in exhausted mines so they could sell them for inflated profits. In one recent scheme a con artist bought six color television sets at the regular price from a retail store, then sold them, still in their cartons, to six prominent local persons for one-fifth of their original price. Later, he hired several high school students as telephone solicitors to sell 'carloads' of TV sets purchased new from a bankrupt retail chain. When potential customers balked, the con artist used as references the original six customers who had been 'salted.' Before the police were alerted, he collected almost $60,000.

The old 'bank examiner' scheme is still around and working well, particularly among older widows. The con artist, posing as a bank examiner, asks the victim to help him test the honesty of bank employees by withdrawing substantial funds. When the funds are handed over to the con artist for 'examination,' he issues the victim an official-looking but worthless 'receipt' and disappears.

Postal authorities warn citizens to be alert for mail order swindles such as phony work-at-home schemes which require cash deposits or payments. Among all arenas for swindle activity, these are probably the most active and productive for the con artist.