The-Con-Artists-Playbook-AARP

TheCon Artist’sPlaybookThe Psychology BehindID Theft, Fraud & Scamsaarp.org/fraudwatchnetworkWatchdog Alerts / Tips & Resources / Free for Everyone

AARP Fraud Watch Network:Inside the Mind of a CriminalEvery day, Americans lose money to scams and fraud, andcriminals get more sophisticated with their tactics. So how canyou safeguard your hard-earned money? By learning the commonstrategies criminals use so you can be on your guard.That’s why AARP is launching the Fraud Watch Network — a newcampaign to fight identity theft and fraud and give you accessto information about how toprotect yourself and your family.Non-members and membersalike can get our watchdog alerts,learn about active scams, and findresources about what to do to spotand avoid them. We’re invitinganyone, of any age, to access ourwebsite and network of resourcesfree of charge.The Con-Artist’sPlaybook is an insidelook at how scammersthink, so you canprotect yourself andyour family.As part of that effort we’ve developed “The Con Artist’s Playbook”— an inside look at how scammers think so you can protectyourself and your family against identity theft and fraud.The Con Artist’s Playbook wasdeveloped based on hundreds ofundercover fraud tapes and hoursof interviews with victims and conartists. It shines a spotlight on thecommon strategies scammers useand gives you the tools to defendyourself against their tricks.AARP: A History of SafeguardingAmerican’s Financial SecurityAARP began more than 50 yearsago when its founder, Dr. EthelPercy Andrus, discovered a retiredteacher living in a chicken coop.She was appalled that a womanwho worked her whole life couldn’teven afford a place to live. Shestarted AARP to protect the financialsecurity of older Americans.Fighting identity theft and fraud ispart of that core mission.2 AARP Fraud Watch NetworkAARP Fraud Watch Network3

How Con Artists Think…Reeling In VictimsWhen authorities ask convicted con artists to describe the trickto scamming people out of money, they all say the same thing:“Get them under the ether.”What is ether?Ether is a heightened emotional state that makes it hard to thinkclearly and make rational decisions. Think about the first timeyou fell in love. Were you thinking clearly? Probably not.To induce ether, the con artistwill ask you questions thattrigger an emotional response.For instance, they might ask youabout your relationship with yourgranddaughter or whether youhave concerns about runningout of money. Once they findEther is a conditionthat a master closerputs you in by hittingyour fear, greed, andurgency buttons.something you care about that triggers emotions, they will“throttle up” on that trigger and get you to focus on it until youare in a heightened emotional state.A con man named “Rocky” worked as a consultant to numerousfraudulent boiler rooms in the 1980s and 1990s (boiler rooms arewhere con artists gather and together dial for their next victims).Here he describes how he trained other cons to induce ether:“Ether is a condition that a master closer puts a prospect inby hitting their fear, greed and urgency buttons. I would tellprospects, I wanted to keep the victim up in the altitude ofthe ether, because once they drop into the valley of logic, I’velost them.”Watchdog WarningNever make a buying decision while you are “underthe ether.” Always wait 24 hours for the excitement of asales presentation to wear off and to give you time tocheck out the company and the product.PanicJoyEmotionUrgencyPanicFearEtherLOveGreed4 AARP Fraud Watch Network AARP Fraud Watch Network5

Promising Big WinsPhantom riches are something you want, but can’t have. The conartist will dangle that phantom in front of you in order to get youremotion up so you will make an impulsive decision. Researcherssay this is the number one tactic found in undercover audiotapesof con pitches.Jeremy Shipman worked innumerous gold coin scam roomsover a five-year period. Hedescribes the use of phantomriches this way. “We would tellpeople that gold would absolutelydouble in value in the next one totwo years and that the prospectwould be able to rely on it makingthem far more money than anyother investment vehicle.”Phantom riches aresomething you want,but can’t have. The conartist will dangle themin front of you to getyour emotion up, in thehopes of triggering animpulsive decision.What are some examples of phantom riches?“And the grand prize is $25,000 in cold, hard cash.”“You are looking at returns that are just astronomical, like 57,000percent.”“I have a check for you for $232,000 that I have been holding forover a year now.”“I have some excellent news for you. You came out as the grand prizewinner.”“The Florida lottery is up to $30 million dollars this Saturday night!If you join our club, you will have 4,800 tickets – that’s 4,800 chancesto win.”Most of these claims come with a requirement to pay a“processing fee” or “taxes” before you can collect.Watchdog WarningWhenever you are approached with this kind of a pitchto win large amounts of money, pay attention to yourreaction. Does your heart start beating faster? Doessweat form on your forehead? Do you start imaginingall the things you could do with the winnings? Theseare signs of being under the ether. Never decide tobuy in this condition. Virtually all lotteries, prizes andsweepstakes offers that require payment to win arescams.8 AARP Fraud Watch NetworkAARP Fraud Watch Network9

Framing the PitchScarcity is this idea that we have in our heads that if something israre or scarce, it must be more valuable. So, the con artist will tryto paint a picture that what they have to offer is rare or availableonly for a limited time.Stephen Michaels owned and operated fraudulent boiler roomsfor over 20 years before being arrested by FBI agents at his homeearly one morning. Here is how he used the scarcity tactic.Other examples of scarcity used in fraud pitches:“There are only 24 hours left before this offer will expire, so you haveto act now.”“You were one of only 17 people selected to win the grand prize.”“We only have four units left on this investment offer so you need tomake a decision soon or you will miss out.”“Now John, back in 1860 from thePhiladelphia mint, there were22,625 of these coins minted.Of those 22,000, only four havesurvived. Only four for God’s sakes,just four remain and are availableonly from me.”The con artist will tryto paint a picture thatwhat they have to offeris rare or availableonly for a limited time.Watchdog WarningWhenever you get approached with an offer that isavailable only for a limited time or is in limited supply,beware! There are very few legitimate offers out therethat can’t wait for you to do some due diligence andmake a rational decision.By claiming that there are only four coins left, he gets you tostart panicking that if you don’t buy now, you may never be ableto again.10 AARP Fraud Watch NetworkAARP Fraud Watch Network11

Threatening for MoneyThe use of fear and intimidation is a tactic that has emerged inrecent years to badger you into handing over money. It is notuncommon for some con artists from other countries to call apotential victim 50-60 times a day to get them to invest.Jean Smith was one such victim.Jean received a call from a manin Jamaica who told her shehad won the $7.9 million dollarJamaican lottery. All she had todo was pay the taxes to collect.Over a six-month period, this manThe use of fearand intimidation issometimes used tobadger prospects.called Jean hundreds of times and convinced her to wire over$30,000 in taxes and processing fees to Jamaica. When she finallystopped answering her phone, he left voice mail messages on heranswering machine:“Why you don’t want to pick up the [expl] phone? Pick up the[expl] phone when I am calling you and stop playing games withme. Want me to come over there and set your home on fire?”Watchdog WarningIf you know someone who is being harassed by conartists or anyone else for that matter, the best thingto do is call the police and file a report. If you arereceiving such calls yourself, consider changing yourphone number with your service provider or screeningyour calls with an answering machine.For more information about the latest scams, go toaarp.org/fraudwatchnetwork.12 AARP Fraud Watch NetworkAARP Fraud Watch Network13

Notes:With offices in every state, AARP isuniquely equipped to help peoplesafeguard themselves against ID theftand fraud. Armed with resources inevery state, we have a big megaphone toraise awareness about how con artiststarget their victims and a network ofthousands of volunteers trained toinform people about fraud and helpthose who’ve been victimized.14 AARP Fraud Watch NetworkAARP Fraud Watch Network15

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