[Skeptical Saturday] Beware of “Get Rich Quick” Schemes

Rich Uncle Pennybags makes it seem easy, doesn't he?

I keep up on skeptical literature, but I really don’t see a lot of skeptics out there talking about financial schemes that are designed to rip people off. So, over the next several Saturdays, I’m going to tackle some of these topics.

I’m sure most of you are aware of the “Nigerian Email Scam,” also known as the “4-1-9 Scam,” but for those who aren’t, here’s a quick recap. You get an email from someone claiming to be a lawyer who is trying to handle a large estate, but who needs help with the fees. For some reason or another, the lawyer has contacted you, and would like your help. All you have to do is forward the lawyer a small fee and your account number, and he or she will finish the transaction and give you some percent of the money (generally, a 6- or 7-figure dollar amount) for your trouble. Sounds like a win-win, right?

Of course, no one should actually fall for this scam. There are too many things that are fishy. First of all, whoever heard of a lawyer who wants to give money away? And to a complete stranger, at that? Why would a large amount of money be frozen in such a way that a small amount of money could release it? Why couldn’t the lawyer just send a check, or initiate a wire transfer to a neutral account? There are just too many ways this scam sounds fishy to most people.

But, the law of large numbers holds that if you can get your sample size large enough, you’re bound to find a few outliers in the form of suckers who will fall for your scheme. And, lo and behold, here’s the story of a guy who did fall for one of these email scams. When you read it, you’ll find out what a sad and messy ordeal these scams can be. The guy just kept giving these con men money until he had to face the fact that he’d been duped. Now, he’s a pariah, and not only does he feel very stupid, but he also has zero credibility with his friends and family.

He should have known better, right? Of course. But the problem is that most people love the idea of getting something for nothing… of having some magical ship come in and give them everything they’ve ever wanted. And that’s why we all have to be careful and arm ourselves against get rich quick schemes.

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[Skeptical Saturday] So What’s the Story With All Those “Turn Your Debt Into Wealth” Type Programs?

Money isn't necessarily the root of all evil, but it certainly is the root of a lot of self-help nonsense...

I don’t listen to the radio often, but when I do, I generally hear a commercial where someone is offering a “proven system” that will help people turn their debt into wealth, no matter how much debt they have. I’ve always wondered what sort of program could take a negative balance and turn it into a positive balance through some sort of financial magic, and I’ve always been annoyed to find that, when I look into these systems, their websites don’t provide ANY information — just a bunch of promises and testimonials.

So, in the spirit of skepticism, it’s time to take a look at these debt-elimination systems, and find out what they’re really all about.

I’ll start with John Cummuta, and his “Transforming Debt Into Wealth” system, because I hear his ads on the radio all the time. Now, I don’t have anything against Mr. Cummuta, and from what I have been able to find out about his system, I don’t have any grounds to say that it doesn’t work. (I’m actually fairly certain that it will work if you follow it.) But what I will tell you is that I can give you much of the same advice here, in this article, for free, if you hang on until the end. That’s not because I’ve bought Mr. Cummata’s book or bought into his system; it’s because his system is something that debt experts have been preaching for decades. Read more »