A Mathematical Scam

Monetary scams by their nature are mathematical. Here is a story of an interesting one. Suppose you receive a mail from a company saying that share prices of X is going to go up the next day and offers services to help you invest, you being a wise person ignore the tip and find to your mild amazement that the prices actually did go up the next day. A week later you the whole process repeats and now you are a little more than mildly amazed that the prediction came true. Suppose this process goes on for five weeks, if you are not well trained in thinking rationally, you now trust the predictions to a large degree and contact the company for a decent sized investment.

Here is what is quite likely to be going on. The scammers send similar mails to say 100,000 people with randomized predictions of say 10 different types of shares going up. Out of which let us say 50,000 predictions came out to be true. The next mail goes only to those 50,000 and so on. At the end of the fifth round about 6250 of those brave-hearts who have not given-in to the desire of making big money are quite likely to do so now.

So while managing your money, if something seems too good to be true, your hunch may be correct.

Author: strangeset

A nomad at heart, I enjoy observing, analysing, connecting, understanding and dreaming. I am a big fan of science and tech. Forever learning and experimenting.

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