World’s Top 10 Biggest Scams: Hello friends today I am going to discuss about World’s Top 10 Biggest Scams , World’s biggest scams , top 10 biggest scams in the world , world’s biggest scams , world’s biggest money scams.
A fraudulent scheme performed by a dishonest individual, group, or company in an attempt obtain money or something else of value.
Scams traditionally resided in confidence tricks, where an individual would misrepresent themselves as someone with skill or authority, i.e. a doctor, lawyer, investor.
World’s Top 10 Biggest Scams
After the internet became widely used, new forms of scams emerged such as lottery scams, scam baiting, email spoofing, phishing, or request for helps. These are considered to be email fraud. Also see phishing, scheme.
The term SCAM in the online world has been loosely translated. By definition, a scam is a quick-profit scheme where a person cheats another individual or group out of money by presenting them with false information during a deal or offer.
World’s Top 10 Biggest Scams
- The Enron Scandal Scam (1996) – (2000) :
Enron Corp. is a company that reached dramatic heights, only to face a dizzying collapse. The story ends with the bankruptcy of one of America’s largest corporations.
Enron’s collapse affected the lives of thousands of employees and shook Wall Street to its core. At Enron’s peak, its shares were worth $90.75, but after the company declared bankruptcy on December 2, 2001, they plummeted to $0.67 by January 2002. To this day, many wonder how such a powerful business
disintegrated almost overnight and how it managed to fool the regulators with fake, off-the-books corporations for so long.
- Pudding Scheme (1999) :
David Phillips – or ‘ that pudding guy’ – is another of the great get rich quick schemers. He is an American civil engineer currently teaching at the University of California.
David Phillips is famous for accumulating over a million frequent flyer miles by exploiting loopholes in a healthy foods promotion in 1999. While shopping, Phillips discovered that the value of frequent flyer points he earned in a promotion exceeded the cost of the pudding he needed to buy to earn the points.
In May 1999, David Philips was awarded 1,253,000 frequent flyer miles after buying 12,150 cups of pudding. He spent $3,500 in total. The value of the frequent flyers points he received far exceeded this but he didn’t do anything illegal. And so, for sheer perseverance and gall, Mr. Philips makes it on to our list.
- James Frey’s Scam (1919) :
James Frey makes it to this list for his book ‘A Million Little Pieces’. He released the book as a factual memoir and made millions in the process – he was even selected for Oprah’s prestigious Book Club list – but in a scandal that shook the literary world it emerged that the book was based on blatant fabrications.
The crimes he credited himself with in his book – a confessional book about his fraudulent dealings and addiction – were revealed to be inaccurate and embellished. James Frey duped his publishers and fans of his books by passing off fiction as fact.
We can only speculate as to whether his book would have made the splash it did if it had been dubbed as fictionalised from the outset; but Frey’s deceptive tactics earn him a solid place on this list of scamming money makers. He’s now worth a reported $4.5 million.
World’s Top 10 Biggest Scams
- Gold Scam (1996) :
Last week 63-year-old Kenneth J. Plonski was charged in a Michigan court for defrauding the Copoco Community Credit Union of more than $70,000. Plonski claims he was also duped by a “friend” into wiring cash to Africa to buy gold. However, Plonski claims he never received any African gold.
The alleged scam is a classic case of “robbing Peter to pay Paul”. Plonski allegedly took out a mortgage with the CCCU in 2014 and began making his monthly payments. Court records show Plonski also used the mortgage to secure a Visa gift card with a $20,000 line of credit, according to a local Michigan network.
- Savings And Loan Scandal Scam (1984) :
The Savings and Loan Crisis was the greatest bank collapse since the Great Depression of 1929. By 1989, more than 1,000 of the nation’s Savings and Loans had failed. Between 1986-1995, more than half of the nation’s S&Ls had failed.
The crisis cost $160 billion. Taxpayers paid $132 billion and the S&L industry paid the rest. The Federal Savings and Loan Insurance Corporation paid $20 billion to depositors of failed S&Ls before it went bankrupt.
More than 500 S&Ls were insured by state-run funds. Their failures cost $185 million before they collapsed.
The crisis ended what had once been a secure source of home mortgages. It also destroyed the idea of state-run bank insurance funds.
- Stella Liebeck’s Scam (1917) :
Stella Liebeck makes it to this list for taking full advantage of a legal situation to extort money from McDonalds. Stella Liebeck spilled Mc Donalds Coffee on herself and suffered third degree burns in the process.
The 79 year old from New Mexico sued McDonalds but wasn’t content at receiving an amount equivalent to her medical bills. Eventually, McDonalds paid out (an estimated) over half a million dollars in punitive damages.
Ms. Liebeck makes it on to our list for taking advantage of her situation to get rich quick and becoming the poster child for frivolous litigation while setting some complex legal precedent.
- Fake Airport Scam (1995) :
In this retro series, Naij.com bring to you the story of Emmanuel Nwude who committed the largest fraud in the country by selling a non-existent airport to a Brazilian for $242 million between 1995 and 1998.
The rise of internet fraud commonly known as 419 is one phenomenon Nigeria has come to be associated it. Before internet fraud became a global issue, Nwude had committed one of the biggest scams in the world.
Specifically, his fraud was the third largest banking scam in the world after the Nick Leeson’s trading losses at Barings Bank, and the looting of the Iraqi Central Bank by Qusay Hussein.
How was Nwude able to carry out this jaw-dropping scam and convince Nelson Sakaguchi who was the director of the bank to part with so much money for the purchase of an airport? Nwude was a former director of Union Bank of Nigeria and this position made him privy to some links, information and documents that other persons would not be aware of.
He impersonated the then governor of the Central Bank of Nigeria, Paul Ogwuma, and connected with Sakaguchi informing him of a mouth-watering deal of Nigeria’s plan to build an airport in Abuja.
World’s Top 10 Biggest Scams
- The Faking Fox sisters scam :
The three American Fox sisters were central to the Spiritualism movement; a belief that spirits of the dead can communicate with the living. They were Leah, born in 1814, and her younger sisters Margaret and Kate Fox.
Margaret and Kate apparently summoned responses from the dead through the sound of ‘rappings’ on hard surfaces – reportedly common in séances. Their demonstrations convinced their older sister, and then countless others, that they had the ability to communicate with spirits.
Leah managed her sisters’ careers in Spiritualism and they were hugely successful – until Margaret had a fit of conscience and confessed, in 1888, that the rappings were fake. She even revealed the method behind the trickery.
This marked the end of the Fox sisters’ career and their descent from riches to poverty. Within 5 years of the confession, the Fox sisters were all dead.
- The Ponzi Scheme (1920) :
In 1920 Charles Ponzi was responsible for a now-infamous get rich scheme where he would promise investors a 50% return in an unfeasibly short time. It was a more innocent age, and get rich quick schemes were rare, so most people couldn’t resist the offer.
Charles Ponzi’s operation ended up taking in so much money it gained international attention but his tenuous business model crumbled when he started encountering difficulties paying his clients. Because, Ponzi wasn’t actually making real returns.
He was, in fact, paying himself and old investors with money from new investors. This ticking time bomb of a system eventually blew up when the law discovered it.
Investors lost an estimated $20 million in 1920 – which would equal about $225 million now. Charles Ponzi heralded the age of the ‘get rich quick’ dupes, and a ‘business’ model is now named after him; the Ponzi Scheme.
1.Selling Eiffel Tower Twice (1900) :
In the early 1900’s, Victor Lustig gained notoriety famous for coning countless people – including, shockingly, the famous American gangster Al Capone.
He makes it into our top 3 because of one very special con; succeeding to sell the Eiffel Tower. A ‘confidence trickster’, the Austria-Hungarian Lusting postured to metal dealers that the Eiffel tower was for sale. He posed as a government official and made the sale, walking away with a briefcase full of money.
The man who agreed to the sale soon realised his error but was too embarrassed to report it the police. Lustig’s grand schemes and stunning skill for evading arrest land him at number 3 on our list of biggest scammers.
His scams totalled hundreds of thousands of dollars million dollars at the time, equating to over $1million today.
So, these are The World’s Top 10 Biggest Scams. Hope this year also everyone will enjoy this show like every year. If any Queries or Questions is persist then please feel free to comment your view points for Awarepedia.