It can happen to you too. How to get scammed out of your Life Savings

In this week’s edition:

• The Classic Scammers’ Script + Telltale signs

• The “Is this a Scam?” Checklist

Scammers stole an estimated $1 Trillion from victims in 2023.

TRILLION.

That’s more than the GDP of 90% of countries and the market cap of all but 7 companies.

It’s a massive industry.
It’s getting more sophisticated.
And, it’s extremely underestimated.

See, there’s this misconception that the victims are “gullible” and didn’t know any better.
We glance at the headline “Thousands defrauded in Multi-Millions Ponzi Scheme” think “That’s sad” and move on.

It wouldn’t happen to us. We know better. 

Unfortunately, this is not the case. We can all fall victims if the Right Scammer approaches with the Right Pitch at the Right Time.

In this edition, I’m sharing an altered story based on friends and acquaintances' experience with investment Fraud. Throughout, I’ll highlight the telltale signs they were being taken for a ride.

(This is no one person’s story but a fictionalized collage)

It’s September 2021, Lebanon. The country is 2 years deep into one of the “worst financial crises since the 19th century”.

Citizens are locked out of their Bank accounts and the currency has already lost 99% of its value.

Karim is a 32 year old Marketer who’s  lost his entire career’s savings. He’s spent the past 2 years rebuilding; determined to never again fall victim to the Banks.

He sees a lifeline in Crypto. The exciting technology has seen unprecedented hype and returns in the past year. But, it’s volatile, complex and time consuming.

Scammers thrive in both times of Economic desperation and Unrestrained hype. The circumstances are perfect. 

But, this is all about to change. He comes across CryptoFund in one of the many telegram and discord groups he’s in.

“Guaranteed returns of 10% per month if you lock your funds for 1 year”

Sure there are doubters in the group calling it a scam. 

But, 10% doesn't sound unreasonable to him… There are people posting about making 1,000X overnight.

Plus, he’s checked with his friends and they’re all getting their 10% every month for months (sure, none have withdrawn yet. But the dashboard says so)

“That’s how Ponzis work! They use new investors' money to pay older ones to build credibility. Once they have enough (or the entire thing fails) they’ll bail” the skeptics cry out.

But, Karim visits the website. It’s professional looking and easy enough to set up.

Sure enough, there it is: Guaranteed 10% return for locking your funds for a year. This is for a limited time.

The website announces they will no longer take deposits below $10,000 by the end of month because they have grown so much that they will start to only cater for large investors.
Creating Urgency, and a “We don’t need your money, we’re doing great” vibe is a classic tactic.

Little is said about how the return is actually generated. The founder is some sort of genius.
It’s actually a lack of transparency that could be a sign.

He relents and deposits $2,000. He’s stressed and can barely sleep that night.

The first thing he does the next day is check his account. The $2,000 is still there.The rest of the Discord group members confirm they’ve received their 10%.

Karim is relieved… and deposits another $1,000.

A few weeks later, rumors circulate that people who are past the 1 year mark are unable to withdraw.
The Company Website claims this is due to the volatile state of the Crypto Market but withdrawals will be restored.

By the end of the week, the website is down. The money is gone

This story is a harsh reminder that scammers prey on our vulnerabilities, exploiting economic hardship and the allure of quick riches.
They create a sense of urgency, offer unrealistic returns, and manipulate social proof to lure us in. But their promises are built on a foundation of lies and deception, leading to devastating consequences.

Keep this checklist in mind when presented with an unusual “Money Making opportunity”:

• Abnormally High Returns: If it's too good to be true, it probably is.

• Downplayed Risk: Legitimate investments always involve some risk. Be wary of promises of risk-free profits.

• Pushy Tactics: Scammers often pressure you to act quickly. Take your time and don't be rushed into a decision.

• Exploiting Emotions and Circumstances: Be extra cautious during times of financial hardship or when emotions are running high.

• Lack of Transparency: Legitimate companies are open about their business practices and investment strategies. If something seems vague or secretive, be careful.

• Is the process suspicious ? 

If you think the information in this newsletter would be helpful to a family member or friend, please forward it to them.

The information contained in this newsletter is for general informational purposes only. It should not be construed as financial or investment advice. Please consult a qualified financial advisor before making any investment decisions.