Besides The Year of The Snake, there are some scams that happened in 2001:
Enron scandal
In October 2001, the American energy company Enron filed for bankruptcy after widespread internal fraud was revealed. This was the largest bankruptcy reorganization in US history at the time.
Strip search phone call scam
A male caller would contact a manager or supervisor at a fast-food restaurant, grocery store, or video rental store and ask for help detaining a suspected employee or customer. The caller would then ask the manager to strip search the suspect, and gradually escalate the tasks to become more sexual in nature.
WorldCom scandal
In the third quarter of 2001, large amounts of money were transferred from the income statement to the balance sheet. This was discovered by employees Cooper and Morse, who worked at night to avoid detection.
Ketan Parekh
Parekh was involved in circular trading with a variety of companies, including Global Trust Bank and Madhavpura Mercantile Cooperative Bank. He was convicted of rigging the prices of ten Indian companies from 1995 to 2001.
Scammers frequently use psychological tricks to manipulate their victims. These tactics exploit human vulnerabilities such as trust, fear, greed, or urgency. Here are some common psychological tricks scammers use:
Scarcity and Urgency
Scammers create a sense of urgency, pressuring you to act quickly before you have time to think or verify information. Examples: "This offer expires in 10 minutes!" or "Your account will be locked if you don't act now!". People fear missing out (FOMO) and feel pressured to make decisions under time constraints.
Authority and Trust
Scammers impersonate authoritative figures or trusted entities, such as police officers, government agencies, banks, or well-known companies. Examples: Fake calls from "IRS agents" or emails claiming to be from your bank. People are conditioned to comply with authority figures and trust reputable brands.
Social Proof
Scammers present fake evidence that others have benefited or participated. Examples: "Look at these testimonials!" or "Thousands of people have already invested.". People tend to follow others' actions, especially in uncertain situations.
Reciprocity
Scammers give something of perceived value to make you feel obligated to return the favor. Examples: Offering a free gift or "pre-approved" loan to lure you into providing sensitive information. People feel compelled to reciprocate acts of kindness, even if unasked for.
Fear and Intimidation
Scammers use threats or fear to force compliance. Examples: "Your computer is infected with a virus!" or "If you don't pay, you'll be arrested!". Fear overrides rational thinking, leading to hasty decisions.
Familiarity and Emotional Appeals
Scammers pretend to be someone you know or appeal to your emotions, such as love, sympathy, or greed. Examples: Romance scams, "grandparent" scams, or charity fraud. Familiarity builds trust, and emotions can cloud judgment.
Exploiting Greed or Ambition
Scammers promise large rewards, like winning a lottery or a lucrative investment opportunity, for minimal effort. Examples: "You’ve won $1 million!" or "Invest $500 to make $10,000!". The lure of easy money blinds people to red flags.
Obfuscation and Complexity
Scammers use complex language, technical jargon, or convoluted processes to confuse their targets. Examples: Complicated investment schemes or fake tech support scams. Confusion leads to reliance on the scammer for clarification, making manipulation easier.
Commitment and Consistency
Scammers get you to commit to small actions that escalate into bigger ones. Examples: Completing a "quick survey" that leads to sharing personal details. People like to stay consistent with their previous actions.
Flattery and Friendship
Scammers shower you with compliments or build rapport to lower your defenses. Examples: "You’re so smart for recognizing this opportunity!" or prolonged chats in romance scams. People are more likely to trust someone who appears friendly and supportive.
How to Protect Yourself:
Pause and Verify, don’t act immediately, take time to verify claims independently.
Be Skeptical, question anything that sounds too good to be true or overly alarming.
Secure Information, never share personal or financial information without verifying the source.
Use Trusted Channels, contact organizations directly using official contact information.
Thanks for your information AI, don't stop educating people.