Scams and Schemes

As I was quickly reviewing my daily spam folder to make sure nothing was lost - it occurred to me.... It's just amazing how many people are trying to rip you off.  It's truly profound how many scams and schemes there are all over the internet.   From stock scams to personal scams. 

These scams and schemes are not just on the internet - I think the cheapness of spamming just makes us see the same ones so many times that we easily recognize them.  These scams are all over the place.

For example, when I first formed my corporation, my address went into public record and I got a ton of scam mail then too.  You have to do yearly filings or face a huge state fee (vs. a small state fee).   Well, these companies send out very confusing and government looking mails that look like bills to you so you think you're paying this fee - and filing with the government.  And, they are, in fact, doing this for you.  But - they are charging you four times as much just to basically "get in your way."  It saves you no time.  It serves no purpose but to take your money.

It's shocking that people feel that this is okay.   How can someone justify tricking people as a way of legitimately making money?   Well, this thought was bothering me, so I tried to break down the logic.

I think the answer is that some people are unaware they are scamming  They probably legitimately think that they're offering you a service.

Think about an extended warranty you might buy directly from a sales place like "Best Buy."   The chances you will need it is very low actually and if you never buy it - you very well may save a lot more money so that the time that you do need it - you've save plenty to cover it.  These additions can add like 25% to the price.  The sales people are bonused to sell them to you.  Well, that's their job, they're there to make money and so they're going to really encourage you to do this.  Are they scamming you or are they providing an over-priced service?   Where is the line?

Are the people who made up this way of making a profit off you by luring you into the store with low prices and then preying on your fear and insecurity to sell you an added insurance policy scamming you or is that simply the way that industry makes it's money?

Where is the line?

There's a lot of gray area.  But it is exactly how the scammers end up becoming scammers - they just slide through the gray area into a situation where they're purely serving their own purpose.

I think the scammers become blind to the fact that this is a scam when they become more focused on their peers and the competition.  When the scam just becomes "well, this is how business is done."

If you look at the financial crisis - You see an entire industry right now - finally in the public eye - which was built on what - essentially was a series of scams... but everyone along the process was so focused on that this is simply how business is done that the needs and safety of the consumers and population were not even remotely under consideration.  Everyone becomes pawns - and they are the generals sending their soldiers off into war knowing they'll die - but staying focused on "the bigger picture."   So - who does that bigger picture really serve?  Certainly not  the solidiers, the pawns, the consumers.   The behavior is sociopathic.

But big banking is not only where this is happening.  This is happening all around us all the time.  We're just aware of the financial scams now.  But these scams are everywhere and they've just not garnered the label "scam" because they're currently being viewed as "business as usual."