One of the most common types of fraud in the Russian financial market is a fraud, built on the “principle of authority”. In such criminal schemes scams are delaying people in their network, under the guise of a well-known brand. They usually incorporate the company-lookalike, whose name is either identical to, or differs from it by only a few letters. Use is identical or very similar brand on them logo. And thus achieve the confidence of their potential victims. They become thousands of citizens.
Today’s financial scams are essentially no different from “children of Lieutenant Schmidt”. Only now they flaunt not related to the character of the revolution, and the proximity to the powerful, to celebrities from the world of show business and Finance as well as fake diplomas, fake certificates.
From Africa to Ryazan
Such fraud is not a purely Russian invention, for it exists even a well-established international term “Nigerian fraud”. This slang name for a particular type of fraudulent scheme appeared, as she received a special distribution in Nigeria in the mid 1980-ies. The circuit operates as follows. Scammers pre-scheduled potential victim and literally attacking her letters ostensibly on behalf of various dignitaries. The authors of these messages usually ask them their addressees about some of the “minor” services — for example, to help in carrying out banking operations, promising a generous reward. In order to make this letter more weight, Scam artists often use even the original printing forms and large firms. To let customers dust in the eyes help and especially open under Scam quite respectable offices and websites of the companies-counterparts. And in classic “Nigerian” scheme activity scams are usually directed at a specific individual victim, around which creates a special atmosphere of credibility and trust.
However, in our country, in contrast to the classical scheme, scammers are trying to achieve a “mass coverage”. So, the most famous example of the “Nigerian scams” can be considered the story of financial pyramid “savings Bank 24”, which operated in 11 regions of the country. The organizers who made a bet on the Association with the name of the largest domestic Bank, has opened more than 20 such “savings banks” and promised potential clients a high return on investment. As a result, was kidnapped from the population more than 100 million rubles. by the Way, in exposing the scams the leading role played by the Bank of Russia. With our employees of the Ryazan Department has identified this a pyramid scheme, initially drawing attention to it is on city streets, and then gathered and analyzed the necessary information, which was subsequently transferred to law enforcement agencies. Against the swindler criminal case, currently, the organizers of the scheme arrested.
“Nigerian scheme” operated and Piramida, OOO Financial company “Credit-Broker-Service”, whose name is consonant with the name of one of the largest Russian brokers. The scheme was uncovered with the direct participation of Bank of Russia. But the victims of pseudobrookite had become hundreds of Russian citizens who trust the “familiar” name.
The heirs of the great schemer
Why scams are able to succeed? The word “authority” comes from the Latin auсtoritatem — power, influence. And, as a rule, unconditionally obeys something or someone who is an authority. While most often this behavior is not only affected by the authority as so-called authority — the atmosphere that surrounds it. To create such atmosphere of work including high-profile titles, expensive clothes, demeanor, etc. the Conscious and subconscious react to such characters.
Remember the legendary novel by Ilf and Petrov “Golden calf” in which a bunch of speculators, headed “the great schemer” Ostap Bender travels the country posing as a children’s hero of the revolution of 1905 Lieutenant Schmidt.
Today’s financial scams are essentially no different from “children of Lieutenant Schmidt”. Only now they flaunt not related to the character of the revolution, and the proximity to the powerful, to celebrities from the world of show business and Finance as well as fake diplomas, fake diplomas of prestigious Russian and Western educational institutions (IBA), a fictional biography, telling about their years of work in the largest investbanka, on the securities market, the foreign exchange market “Forex” etc.
In this modern financial fraudsters often look quite respectable, dressed “to the nines” and say, sprinkling it tricky financial terms completely foreign. Their pages in social networks are full of photographs demonstrating the colorful life of the successful, wealthy people. On pictures adorn the cars of prestigious brands, allegedly received by such “consultants” for valuable services in managing other people’s finances, mansions, rebuilt in wasn’t the hard work means. Either simply and without unnecessary frills — cash in a large amount with a note, “that’s how much I earned in a month.” An inexperienced person, far from the world of Finance, to recognize such fraud is not easy. In fact, it is calculated and speculators, creating the image of a kind of financial guru who can be trusted with your money.
To give his image of solidity and soundness, they for a short time a prestigious rent expensive offices in best business centres or premises that had been occupied by the credit institution. Scammers do not spend money on “promotion” of criminal business, to promote their projects in print media and on the Internet, create attractive sites, organize SMS-mailing. In advertising they talk about their own talents and abilities to manage finances, about the invention of a unique method of investment that allows you to earn hundreds of percent per annum and are not doing routine work, living solely on passive income. As evidence of scammers demonstrate cooperation agreements with large banks, investment companies and industrial holding companies, and to be more convincing I can imagine licenses and patents for unique inventions. But in reality all these documents are fakes.
Needless to say that in fact, all such actions have only one aim — to attract more money from unsuspecting citizens, and then disappear in an unknown direction.
When defrauded clients understand that in an ostentatious credibility disappeared not the authority, but an ordinary crook, it’s too late — the money invested so just did not return. Often it happens that people until the last moment continue to believe in a refund even if speculators refuse to do it under false pretenses — for example, say that at the moment there was “a purely temporary technical difficulties associated with conversion”, etc the Scammers due to this, getting a head start at the time and, using it, being drawn into their nets all the new hapless “investors.” And can only rely on law enforcement and that the criminals will not be too wasteful and will not have time to spend all the stolen money to the moment when they’ll hold.
While victims of scams for a long time, infected with distrust of all financiers. Once lost their savings, they are all experts and specialists see the scams, many of them said the word looking for the catch.
The domestic financial market is quite young — in contrast to the West, a history spanning hundreds of years. But in spite of this, a Russian financial company managed to gain a good reputation they are justly proud and which we value. Private and institutional investors trust well-known reliable brands and working in these companies, professionals and financiers. Therefore, it is obvious that all kinds of fraudulent practices are dangerous not only because detrimental to citizens, but also because diskreditiert known national financial brands and the entire financial market as a whole.
Everyone knows that the financial market is largely based on trust. What would be the measures for its maintenance and development or undertake the financial authorities and the regulator can not achieve the proper result, if the society will be missing the credibility of this important segment of the economy.
To counteract the unlawful practices that undermine trust on the part of society to the financial market, the Bank of Russia conducts a range of activities. But while the financial business community itself also needs to be interested in the reduction of fraud cases, including based on the “principle of authority”. Frustrating when your good name is used by someone for criminal purposes. To win the trust and respect of customers, the popularity and brand awareness, companies take many years of diligent, focused work, they spend a lot of money. Scammers taking advantage of the fruits of the labor of others that can destroy trust and undermine the credibility of the company in a short time.
Measure twice, cut once
Of course, activities such “children of Lieutenant Schmidt” is primarily aimed at citizens with low levels of financial literacy, as well as people who are in a difficult financial situation and therefore desperate grasp like a straw for any proposal.
Experts suggest always questioning everything. In a meeting with the apparent authority necessary to ask yourself the question: “And whether this “authority” is a real expert in his business? He has the necessary knowledge?”. In addition, you need to take it a rule to tactfully check the documents, to make inquiries about the person or company that offers you their services, not to chase the elusive possibility of instant enrichment. To check whether the financial institution is actual, not fictional, on the site of the Bank of Russia, which published a list of banks and registries, MFIs, credit cooperatives, pawnshops, lists of professional participants of the securities market.