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ON GUARD – Fraud Spotter #39
Personal Contact Scams – Pt. 1

Many cons are perpetrated at a distance. The con artist is usually safely out of reach and able to work his ruses via the mail or over a telephone line, without having any personal contact with you. You can't see him or easily identify him and that's just the way he wants it. A con man may work thousands of suckers in the course of his career all completely anonymously. When he becomes known and identified by people, his schemes may begin to fail.

Unfortunately, in a world driven by the lure of the fast buck, the con man, worried about quick detection, has been forced to work faster than the more leisurely pace he once enjoyed. Many of today's con artists would rather not take the time to wait for your check to arrive in the mail. It's too risky to be tied down to an office or a post office box where law enforcement can zero in.

Like the riverboat gambler and the traveling medicine show hawker of the Old West, some of today's con artists have become itinerant again. They move from place to place playing short cons that take little time to execute but require personal contact with the victim. Though more dangerous, these scams are much more effective. It cannot be denied that the US mail, telephones and personal computers have helped the scammer reach new criminal heights. But in the end, the fastest, most effective cons are still accomplished face-to- face.

Time never seems to lessen the impact of a good scam. What worked over 150 years ago on the dusty streets of western towns still works on asphalt and concrete today. The only things that change are the details. One scam can be pitched a hundred different ways, yet retain the same basic premise.

Street scams can happen to anyone, and for a swindler that's the beauty of it. We tend to be more susceptible to fraud when we're out in public. Every day we talk to strangers in stores, restaurants and businesses. In doing so the chances of encountering a less-than- honest person doubles, but our level of caution seems to be halved. The scam artist thrives on this and his swindles work more often. A con man on the street always has a good deal to cut you in on.

A common swindle involves a man who approaches you and says that he has a very expensive case of liquor to sell. The usual line is that the party was canceled and he needs to recoup some of his money. He is willing to sell you this case of fine spirits for a wonderfully low price. Are you interested? This is the make or break point that so many trip over. After all, a good deal just walked up to you, are you going to turn it down? Of course not! And that was your first mistake. Your second comes when you hand over your cash and the nice man with the splendid deal disappears around the corner to get the case of liquor out of his car. He never returns and neither does your money.

Smart con men know that a crowd can be profitable. Not only are there more suckers to fleece, but a crowd also provides cover for some interesting sleight of hand. Watch out the next time you stop to enjoy a street musician, magician or comedian. He may have shills scattered throughout the crowd who are likely to pick your pocket while you are watching the show. The purpose of the entire performance is to distract you from the crime.

Con men don't always work alone. A famous scam involving a pair of swindlers is called the Handkerchief Switch. One fellow plays the part of a country bumpkin and stops you as you walk out of a bank. He tells you that he is new to the big city and not at all sure that his money will be safe in "this here high-falutin' bank." He's heard stories, you see. The country bumpkin's partner, playing the part of a city businessman, "happens" to run into the two of you as you stand chatting on the sidewalk. He suggests that you go into the bank and withdraw a large amount of cash to show the bumpkin that banks are safe institutions. Of course, after some fancy talking and even fancier sleight of hand, your cash ends up in their hands, not yours.

Another example of a scam sting team goes like this: you are at work in a store when a distraught woman comes to the counter and tells you that she has lost her diamond ring. A search turns up nothing, so the woman flashes a wad of cash and offers you a reward if you find it. You take her phone number and she departs. Some time later a customer comes to the counter with the ring, claiming that he found it. You could hold it in lost and found, but what about the money you were offered? Dollar signs dance before your eyes as you offer the fellow a hundred dollars. He takes it and gives you the ring. You dial the ring owner's number, figuring that her wad of cash more than exceeded a hundred bucks. The number is fake and, of course, so is the diamond ring.

Banks seem to draw con artists like no other institution. Watch out for out-of-order signs on night depositories. A locked box usually sits under the deposit slot with a note that reads "place funds in alternate depository." Chances are the con artist is parked in a car across the street, watching you hand over your money to him. He'll milk the scam for as long as possible and after several deposits, he'll pick up his box and disappear. This scam was reworked recently on the west coast and netted a very nice chunk of money until police staked out a bank and put an end to it.

Legendary cons involve street vendors selling fine watches or jewelry at low prices. Buy something from him and it's guaranteed to fail within a few days. The vendor will be long gone if you decide to try for a refund. Selling from card tables and the backs of trucks, these con men never stay in one place more than a day.

Look out for the Diamond Dodge, in which a fellow who offers you a very cheap price on a genuine six-karat diamond ring stops you on the street. He even offers to take you to the nearest jeweler for to verify the diamond's value. It's genuine, of course, but somewhere between leaving the jewelry store and reaching the sidewalk outside, the real thing has been switched for one that only looks real. You won't discover this treachery until you've paid for the diamond and gone on your merry way.

Con artists come in all sizes and some of the littlest are some of the very best. Kids seeking donations for obscure school fund- raisers, church projects or other groups make good money from fake causes. Adult scammers often use kids to pull in the cash. Look out also for kids claiming that they've lost their cab fare or lunch money. By the time they've finished working a street, they'll have enough cash for a limo ride and a gourmet meal!

Con artists who work the areas around airports and hotels often take in tourists and foreigners. A swindle that works well in an extremely short amount of time is called the Bill Switch. Hustling taxi drivers use this one on just about anyone who steps into their cab, and foreigners are a popular target. You give the driver a $20 bill to pay for the fare. The driver drops his hand below the level of the back of the seat and immediately comes up with a one-dollar bill. Looking at you, he'll say, "What's this?" You'll believe that in the rush to pay, you pulled out a one instead of a twenty. Always look at the bill before you hand it over. If the driver says "that'll be $12.50" do what I do anytime I pay for anything and say: "I'll give you a twenty" as I hand over the bill. He heard what I said and he knows I know what I'm giving him, so a scam is harder to pull off. Taxi drivers also like to tell passengers that the fares have just gone up and the prices printed on the cab are no longer accurate. Always check cab fares before you get in the cab. .

Resources

Links

Fraud

ScamWatch

ScamBusters

The Better Business Bureau

The Federal Trade Commission

Consumer's Checkbook