Very thin line between legit term insurance and Ponzi pyramid scheme

 As I was discussing marketing of a product with an entrepreneur he proposed a too good to be true proposition:   pay one time amount of Php x and if something happens, he gets the product and service free.  I objected to this because it becomes an insurance (if registered) or a Ponzi scam:

What I did not like:

1.  There has to be a big universe:  There has to be many buyers(suckers)  The new buyers of the amount should be able to service the needs of those who need to get out because of death.  

2.  Thus is risky:    the chief has to be responsible for cash flow, and losses of the firm.   If the cash flow out and cash flow in stops, the whole thing collapses and is unsustainable

The cash flow becomes long because there is no limit to the amortization.  It is one time payment of premium.   If there is high returns for financial instruments, then the scheme will work,  If there is inflation for the cost of the product or service being offered, and low returns for financial instruments, then there is a negative carry, and the whole financial model collapses.  

Ther risks are:   CDO from Insurance Commission, SEC investigations, and possible charge of estafa.  

It is actually the way scam, Ponzi scams work.  

How a scam destroyed Albania - due to pyramid scam

 Scams results can be catastrophic.  It can destroy an entire country and bring it an upheaval.

This page/site has very low readership, people are not wary of scams

 This post noticed very low, and sometimes 0 views of this site.  This means that very few people are made aware of scams that they are about to encounter, and hence being not forewarned can fall victim to the MO.

I hope many people will  (Or this is part of following trust no one, not even a scam warning site/page)

Be forewarned be armed.

Trust no one.

Only the paranoid survive

Even the govt, the revenue offices are not immune to scams

 This is an example of how foreigners, immigrants can outwit the legitimate host country and defraud the govt of millions.  This is an anecdote about Iris Tech run by Samer Bishay was able to defraud CRA in the amount of $63Milion in an elaborate carousel scheme to be able to collect tax refund.

Our BIR should be congratulated for being able to control VAT refund being claimed by foreign firms

Carousel Scam - Iris Tech

Creativity and growth in number of scams amazing

 I am amazed how people use their brains and ingenuity to the full on how they can fool and scam others.   I thought our purpose in life is to find your gift and use the same to serve others.

Before this post taught in a school and prior to discussing the legit course, this post asks the students in a group to come up with a crime. scam.  It is surprising how students can be so pumped up and creative.  

Prediction of 2024 scams

 I actually experienced the recovery scam.   My house was robbed 3 years backed and then met the new chief of police who happened to be a relative.  He said he had lead on the robber.  But I should get two tickets worth P1,000 each for further follow up... Last time I heard from him

Beware of AI generated products and celebrity scams...

Criminal case app which you click  which later on cleans your account

Phone call block to your bank for verification

(Before when phone lines were scarce, the lineman had scam to pay him 5 number amount to get a line)

Are organizations, both govt and non govt capable of scams?

 If we include unfulfilled promises or claims or visions that were promised, we would say yest:

1.  Churches/sects -  "If you join us, you will have everlasting life, you will be saved."  -  Do we have enough proofs of those who were saved, or those who had everlasting life.

2.  Schools educational institutions -  "When you study, you will be smarter, you will have high paying jobs."  Really?

3.  Social security system -  safety nets for our workers when they retire or are laid off...

4.  Politicians govt -   We will take care of the poor and take care of your needs.  This country will be great again

5.  Product -  this cream will make you white.  This drug will make you live longer.  

Trust no one - important rule not to be scammed

 Only the Paranoid survive

Trust no one.   Silence is golden.  Be discreet about your success or financial standing.  Do not share this online on soc media or people you met on your social media account:   WhatsApp, DM, or dating sites. Or even to persons who are close to you:  relatives, friends.  

Large scale real estate scam covering 3 municipalities - hence growth is slow and investors avoid our location

There is a sucker born every minute.  P.T Barnaum

There is large scale land scam in our area that drives away investors, stops development.  The justice system helped perpetuate this scam 

This is the so called Guido Estate, purportedly existing since 1912.  This covers areas from Mambog of Binangonan up to Villa Valera in Taytay.  

The  claimants here are 3:    Guido et al Interport and Rommel Realty.  When you apply for title it was alleged you have to settle, get quick claim from the 3 of them.

Correct us if it wrong.     There was this title for the Guido estate with technical description which was hurriedly issued a title on the same day by the RD of Morong.  The Mayor of Binangonan through the Solicitor General filed a suit vs the Title and the RTC said the title is fake.   The case was brought before the CA which reversed the lower court   This eventually led to having the Supreme Court for finality.  SC said that all titled land belong to the owners with Title, and those without title with Tax Dec are subject to case by case litigation. 

I met a person who used to work for BL who boasted that he was able to memorize the technical description of a 700 sm  property, from a microfiche.  From there, he was able to project that property to be 3,000 hectares.    And the technical description was the basis of the title issued  by the RD of Morong.  

How could the courts have caused so much injustice, perpetuating a scam, denying them the right to abode and land ownership.  I wonder if Guido was able to show proof of possession by paying the back taxes.  

Those who have tax dec can sell them but no TCTs will be issued to them.  Legit businesses will not buy properties without title.  So it is common in this area to sell subdivision lots without TCT.

When will the scam stop?   When will these 3 entities end the blockade to businesses who want to be in our area?

When you do not keep your word, you engage in scamming

For every minute, a sucker is born....PT Barnaum

When you do not keep your word  you engage in scamming.   Those who say they have never told a lie is a liar.

One of the secrets of success is keeping your word.  But many times we dont:   we forget, we do not strive, or sometimes we do this willfully.  

Delivering products or service not as promised on the said delivery date is tantamount to scamming.  Yet that happens, because of oversight, too many deliveries, or lack of supervision.  Somebody must strive to keep the word to the customers 

Abstraction of reality often cause of scams

 A document is a departure from reality.  Web is a departure from documents.

And yet we think that the Web is reality.  We think that whatever is in the web is true.  

That is why are scammers are capitalizing on that. Whatever is on web or in phone is true.   And they are exploiting this mindset

Definition of SCAM

 A scam, or a confidence trick, is an attempt to defraud a person or group after first gaining their trust. Confidence tricks exploit victims using a combination of the victim's credulity, naïveté, compassion, vanity, confidence, irresponsibility, and greed. Researchers have defined confidence tricks as "a distinctive species of fraudulent conduct ... intending to further voluntary exchanges that are not mutually beneficial", as they "benefit con operators ('con men') at the expense of their victims (the 'marks')".^[1]

From Wiki

Google vs Terra Vision - Billion Dollar Code at Net flix

 What is the truth?

Army of writers, content providers, photographers for free

Picture yourself.   Being an enthusiastic computer blogger king wannabee.  You want to make a dent in the universe ast the great Steve Jobs has motivated zillions to be in the computer age.

So you subscribe to a blogging platform.  And then start posting.   You have been given all the support: to upload pictures, videos, to edit your posts, links, reading materials,  maps, GPS, library of videos.    You are provided with metrics, and feedback on how well you are doing.   Over the course of the years what have you accomplished for the blogging platform:

    1.  Thousands of pictures with description and location 

    2.  Thousands of articles.  Content that are searchable.  You have added hundreds, thousands of

          articles that are searchable expanding their search engine encouraging more clicks and searches

You and millions of others are doing that daily, uploading millions of articles and pictures, expanding the WWW.  You are lucky iif you are monetized because you are monetized (if you reach the number of subscribers and viewers).  For the million others, what do they get.?

The platform does not need to employ and pay:   1   writers  2.  photographers.     They get it for free.  In the process they get to be the biggest company on earth earning zillions.  

They simply match and meet the needs of the writers and the wannabees to be popular, and have high number of views and clicks

These platforms should thank and honor their employees.   Their supporters and workers worldwide

What a great meeting of opportunity and availability of infrastructures

   

Pirates of Silicon Valley

 There was a saying that "Artists copy masters steal"  meaning that most "original innovation"  or inventions are stolen.  So in the movie "Silicon Valley" how two great master in computer were into this game.  About OS, and the windows being a copy from Apples icons.

And then lately we see at Netflix a case involving claims that Google Earth was stolen from  Terra Vision? We see how great lawyers and expert witness (Bryan Anderson) settled the claims in favor of  Google

Netflix on Google vs Terra Vision

HAPPY FATHER'S DAY EVERY ONE

 HAPPY FATHERS DAY!

Scarce viewers/readers

 Daily there are suckers born every where.   PT Barnaum  Ever wondered why the founder of a leading soc medias last name sounds the same?

There is no need for more victims and sufferers from scams.

Hence this blog.  However, it is noticed that there is a scarcity of readers.   Not forewarned, not armed.  Hence there are more victims.

How can we increase readership of this blog? (so that there will be less scamming)

Scam proofing; an ounce of prevention is worth a pound of cure....

Maging handa; mauna ng pag iisip vs scammer. Be smart, not a victim

Broken dream, hope for getting rich quick?

Is it broken?

 

Scams in on line transactions

 I can cite several examples I personally experienced or told to me by relatives or friends.

1.  Non delivery of items that have been prepaid.

     The first order was good   The seller met me personally at MoA.  It was a carbon fiber OEM of an

     Italian bike.   He did not deliver the second order cf wheelset   It was a P25,000 loss.  Going to court

     legal remedies would not amount to anything because of high acceptance fee.  There was a terrible

     typhoon that visited their place.   Divine Justice?

2.  Non appearance of sellers or buyers.  Very frequent.   Of Indian origin/descent

3.  Wrong item delivered.  Read carefully what is being sold.  They put the wrong picture and thinks you

     are ordering what is on the picture

4.  Misleading price -  There are options in the picture what the price covers.

5.  Shoddy poor quality products.    Sometimes the posted product is a fake one and of poor quality.  The seller gypped the original product maker, and gypped you too.

6.  The pay first do not open policy on the spot.  I wish they relaxed this.  You have to pay first for

     COD and you cant return on the spot.  You have to spend separately

What to do next:

1  Avoid online transaction

2.  Blacklist (in private) those who are scam perpetrators

3.  Read comments, seek reommendation re store.  Buy only from reputable and tried and tested 

    stores.

4.  Read read, research what you are buying.

Even then masisilat maiisahan ka pa rin

      

Scam - nagkukunwaring pulis, mangungulimbat pala

 Ano nangyari sa mga taong ang sumpa ay "To serve and protect" na sila pala ang mangingikil sa mga mamayan?

Ano puwedeng solusyon?   Ano puwedeng pamigil?

Experience ng mga sa negosyo, wala silang magawa na hindi magbayad pag kumukuha ng permit sa mga LGU.  Kaya sinabi ng ilang ahensya na ang mga LGUs and pinaka corrupt  Hindi BIR, Customs at DPWH

Paluwagan scam - mga kalahating bilyon ang nakuha?!

 Talagang maraming nahihikayat pagka ang pangako ay malaki ang kita.   Papapasukin muna na kumita, pagkatapos hindi na magbabayad.  Mawawala na.  Mag unfriend na.   

Kawaawa naman ang mga nawala.

Mga iba pang scam na naranasan:

1.  Help a friend in need gmail.  Mayroon nangyari na involved ang pangalan ni Cardinal Tagle.  May email na humihingi ng tulong:    nawalan ng pera, sa ibang bansa, may roong may sakit.  Minsan yong humihingi ng maski magkano lamang ang tulong, hinaharvest ang contact mo.  Naranasan ko ito na dating estudyante ay nag email galing sa Europe na siya ay kailangan ang PHP dahil nanakawan.   Iba ang email duon sa ipinadalang tulong kaya di ko pinansin

2.  Credit card fraud.

Nag check in ako sa isang hotel sa Western Visayas.  Pero nagulat ako na may P100,000+ na nacharge sa credit card ko sa London.   Eh hindi naman ako napunta.   Yong hotel na concerned kilala sa mga ganitong klase.  Mabuti nang kinontest ko ang charge, pumayag ang credit card company

3.  Romance scam

There are many through social media who will DM you and surprisingly profess there love.  I suspect there are people from Africa.  There were people arrested for the same offense For Romance scam.

This post noticed that most of the common script are:   lady officer of a ship, lady soldiers from Syria or Afghanistan.  And then suddenly there will be emergency.  They have money at the ship and they do not know how to make the money safe from pirates, or those from Afghan and Syria, they will have money they do not know how to launder

Variant of the African scam.

4.  Gambling scam. 

Despite the SIM registration, there are offers:   seed money offer to join a game, with P500 to P1000 incentive.  And the trap having been set.

5.  Phishing

You see them often:   banks emailing you to renew your account

FB or other social media, notifying you of deleting your account.  But look who is sending you message:  private account

Be careful, and be wary of scam

\

Why do we fall for scams

 For every minute a sucker is born

Why do we fall for scams

We wonder despite so many victims and stories about scam, there are so many fall for scam

1.  We follow authority

2.  We fall for freebies  --->> we want high high returns

3.  Scammers are focussed

4.  We may be distracted

5.  The scammers have so much accumulated knowledge

https://www.welivesecurity.com/2022/05/12/10-reasons-why-we-fall-scams/

10% per month income sa rice trading sa P7.8 million investment, pinahiram ng credit card

Paluwagan scam

Maraming scam. If it is too good to be true, then it is not.

Scam: bistado

Why Warren Buffett hates bitcoin

 

Why?

International big time scams

 "Only  paranoid survive"

"Ordinary artist copy, masters steal"

1.  Archegos

    Bill Hwang.  Total loss:   Hwang:   $20 billion.  Banks   $10 billion

    Losing $20 billion in two days. Hard to build easy to lose

2. Bernie Madoff

   Bernie Madoff - $65 billion Ponzi scheme

3.  Adani    

    $120 million loss. Who is right Andani or Hinderburg

4.  Olympus

Olympus - Japan's biggest corporate fraud

5.  Greensill + Adani + Credit Suiss

    Greensill investigation

Why crypto is a scam?

 "Only the paranoid survive"

The early theme for this was Ponzi scheme.  It satisfies the need to get rich scheme.  It thrives because there are so many wanting to get rich fast. It creates wealth for the old user, who gets the income from new user.   What happens if the world runs out of sucker?

The number of bitcoin is pegged at 21M vs unlimited printing of money for central bank

1.  Uses the chain block system

2.  This is supposed to be a digital currency managed by private person

3.  A currency value has to be stable, but crypto value is anything but stable

4.  Its value does not rise.  It is a betting game.  Income comes from the other person

     who owned the currency before

5.  The whole thing goes on for as long as there is a sucker

6.  Get in early, and you will reap benefits

7.  The more people buy it, the less it becomes a currency, the more its value fluctuates

8.  Mining bitcoin consumes more energy than one country. One transaction consumes the same power as a  household

It is a Ponzi scheme clothed in a digital clothing

Rentangay

Only the paranoid survive

This is a combination of scam, and robbery.  It is as the name suggest, renting vehicle, and carnapping the rented vehicle.  Recently, someone was caught and an officer of PNP was involved.

How to avoid:    avoid the business.  It is too risky

Some notable Philippine large scale scams

"Only the paranoid survive"  Be careful of your business dealing, the world is full of trickery

There has been a number of well publicized scam in the Philippines:

1,   KAPA scam ni Pastor Joel Apolinart  Estimate na nakuha P50 billion

2.  Rose Balajadyay  well known for Multi tel.  I knew of a couple in CL who lost about P5M

      in this scheme.  The wife died out of shame.

3. One Dream Global Marketing. Arnel Gacer



Aman Futures investment scam, mahigit 10,000 nabiktima. Mastermind nakatakas papuntang Malaysia

Erma Degman - P100 million. May isang biktima P30.00 million  

May Libanan scam  worth P700 million

  - https://www.youtube.com/watch?v=KbE2HBlRV1E flex fuel. Nanahimik na

Job offer scams- have you experienced this?

 If it is too good to be true, then it is:

Some tell tale signs:

1.  Higher salary

2.  Personal email being used, use of social media

3.  WFH, no experience required, many personal information required prior to info on the job;

4. Many tasks being required prior to job interviews

5.  Money first for Physical exam, laptop etc.

Beware.

https://news.abs-cbn.com/business/2024/6/12/airline-offering-dog-first-experience-expands-to-five-new-destinations-656

Task based scam - like heart sa mga tiktok, shoppee

 Dont fall for this.  Invitation to like follow, heart

1.  They post invitation sa FB

2.  Then you access site

3.  You are assigned tasks:  like follow etc:  Tiktok, fb, Lazada

4.  Then you are assigned receiptionist and you join a gc

5.  After you are paid, they ask you to invest first before new task

6.  After you invest, you get kicked out of gc.

Variants:   job opening, top up scam for daily wage paid tasks

Beware.

G Cash Scam video - paano ito gagawin

 1.  Kukunin G cash # ng victima

2.  Tatanggap ng authentication code

3.   Hihingin ang birthday mo at ng anak para mahulaan pin code

4.  Pagkatapos, kukuha sa account mo.

Naisihan ka na.  Scam completed

May version naman na naaksidente ang nanay anak mo at hihingi ng fund transfer

1.  Huwag gawing pw ang birthday

2.  Huwag magpadala ng PHP maski maliit na amount sa mga nangangailangan

3.  Huwag magclick sa mga post

4.  Huwag magtiwala sa nakilala sa fb.  Sa mga'"friends" sa  fb. Sila ay mga fiends.

 

Scams in the Philippines: would be victims - BEWARE

" In every minute, a sucker is born"

Be forewarned, be armed

Most dangerous scam in the Philippines from foreigner's perspective

"For a every minute, a sucker is born"

Beware of this most dangerous scam in the Philippines

 

Warning muli ni Chinkee Tan vs business investment scam

Mga warning signs:

"Double your money" 

Get rich quick,  If it is too good to be true, then it is.

Guaranteed.  (mawawala)  There is no 100% risk free  Safe investment

Pyramiding, recruitment.  

0 risk

"Learn and earn"

Gumagamit ng fake na profile, wrong account

People invest to have passive income, to leave legacy.  

WTDN

1.  No online transfer

2.  Huwag magmamadali

3.  Magtanong:   sa accountant, sa lawyer, investment expert

4.  Dont invest in something you do not understand:  cypto, NFT (non fungible token)

Warning ni Chinkee Tan vs scams

 Mag ingat.

Maski maraming warning, paalala, marami pa ring nabibiktima.

Scams/fraud situationer

 "Every minute, a sucker is born"  - P.T Barnaum

That is why scammers abound and multiply.

To the suckers out there, please take note

1.  "Only paranoid  survive"  from Andrew Grove, former CEO of Intel

2.   "Be careful in your business dealings, the world is full of trickery"  Desiderata

3.  "Caveat emptor"

To deal with this, govts have put up cybercrime units.  In the Philippines there are cybercrime units for PNP and NBI.  There are strict laws that punish scams:  esp bouncing check law, Cybercrime laws, Art 315 of revised penal code.  The Revised Security Act.  The SIM registration.  But scammers never seem to let go.  They are back in numbers and intensity.  Whatever happened to past scams.

With internet, the scammers do not have to bring arms or kidnap anyone to perpetrate their crimes.  All they need are cellphones and their conning (cunning minds)  No need to rob a bank.  

There are many types of scams:   romance, phishing, face to face, investment scam.

Let us see for example at FB

Scams, scams, scams, frauds everywhere....

 Lately, a fmr batchmate inquired about another fmr batchmate who said was borrowing money.

Was I approached before for a a loan?  I answered yest.  But I said I am not into it anymore because I have all ready assigned my estate to my heirs and I have very little money on hand to spare.  Besides I know that the person is well off, having worked before with a multi lateral bank.

I was told that the same person is borrowing money -  huge millions.   The person made millions from mere P500,000 investment in bitcoin and appeared to have lost all them.

Now babawe.   

I am sure the person has lost it.  Crypto is one of the investments experts have warned against.  All people I know who invested in crypto/bitcoin have lost their investments -  are penniless

Scamwatch

New scams in 2024.  (They got to be new)