Gullible suburban mother of four regularly duped in her half-century life. Exploring hoaxes and schemes as the ExSCAMiner, she attempts answering the nagging question: Should I have fallen for that? Got scam tips, email Karin at ScamExaminer@gmail.com.

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Male enhancement matters to scammers

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High yield = high risk (especially in Ponzi schemes)

2 comments

May 27, 2:03 PM

by Karin Malchow, Scam Examiner

Definition of Ponzi Scheme: Where dividends/profits paid to investors is money from new investors. Many are left holding the empty bag.

(Note: While still a scam, pyramid schemes typically inform investors upfront that their return depends on recruiting new investors. The classic Ponzi scheme does not.)

The Ponzi scheme (employed by Kirk Wright) is one of the most insidious investment con games, ensnaring wealthy and financially struggling, retirement savings and inheritances, young and old. How has it endured for over a hundred years, beginning even before its namesake? Many scammer avoidance rules don't apply.

Scammer avoidance rules	How Ponzi scams subvert them
Know who you're dealing with.	Scammer openly enlists friends, family, business associates and neighbors.
Show me the money.	Investors receive a financial return, particularly in the beginning.
Look for history and longevity.	The con takes a long time to unravel, providing stability illusion.
Follow the paper trail.	Falsified financial reports are common.
Does the founder follow own advice?	Sure, he's the first to find wealth through the next investor's money.

Two rules which are applicable:

1. Understand your investments.

2. If it sounds too good to be true, it usually is.

Topics: Con artists , Ponzi scheme

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Comments

He did what?!? Presidential campaign smears

1 comment

October 6, 9:32 PM

Whether presidential campaign smears come from pamphlets, letters, chants, television advertising, telephone push polls, internet rumors, campaign officials or supporters, people keep falling for them. According to rumors or accusations, which presidential... Read More
Topics: politics

Male enhancement matters to scammers

1 comment

October 4, 4:26 PM

MSN Health reported a preliminary Italian study suggesting an ancient Chinese herbal aphrodisiac could be a natural alternative to Viagra and other pharmaceuticals treating Erectile Dysfunction. Spamming internet scammers are likely to latch onto... Read More
Topics: E-mail

Best (also worst) inheritance scam

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October 1, 2:10 PM

Tales of estates snarled by bureaucracy still flood e-mail inboxes; a share of the vast fortune only requires immediate cash to either cheated heirs or estate locators for money transfer fees or bribes. The internet version of the inheritance scam... Read More

Does your city rank on reporting fraud?

Add a Comment

September 30, 12:12 AM

The Federal Trade Commission maintains a Consumer Sentinel database collecting complaints from 125 organizations, including the Better Business Bureau, the Internet Crime Complaint Center and the US Postal Inspection Service. The individual consumer... Read More
Topics: fraud , Identity Theft , FTC

Life after death

2 comments

September 26, 11:48 AM

A recap of insurance fraud items in the September 2008 news:Dead men don't go to the doctor.When Ahmad Akhtary's British ex-wife attempted to claim £300,000 insurance after reporting his death in Afghanistan, a couple items tripped up the scheme. ... Read More
Topics: fraud

Famous people confess badly kept secrets

2 comments

September 24, 3:36 PM

AP/People In honor of Clay Aiken's sexual orientation confirmation and Lindsay Lohan-Samantha Ronson dating relationship acknowledgement, here are some other not-so-startling celebrity revelations. Whether those in the public eye... Read More
Topics: suspicion

Keeping your head during economic strife

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September 21, 9:13 PM

Whether one believes the U.S. economy is a house of cards or undergoing a cyclical correction, a Ponzi scheme facsimile or fundamentally sound, a dose of Frank Capra is always fun. According to an MSN-Zogby poll, most people are taking recent economic... Read More
Topics: movies

Moving company pirates hold stuff hostage

1 comment

September 19, 9:33 PM

Unscrupulous moving companies and drivers are hijacking people's belongings and demanding ransom. The scam goes like this:After entering into a contract with a moving company for interstate relocation, possessions are loaded into a truck. ... Read More
Topics: fraud

Before Beijing Olympics started, London Olympics scam began

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September 17, 9:08 AM

BBC London reports that in December 2006 Nigel Lewis advertised for construction workers for the 2012 London Olympics village, promising cruise ship accommodations. 550 Slovak workers responded with a £600 deposit.After breaking off communication... Read More
Topics: advance fees