WHO ARE THE PERPETRATORS OF FRAUD?
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Many frauds are perpetrated by criminals in a "boiler room."  This is the term for the temporary "underground" work space set up by individuals perpetrating illegal telemarketing schemes.  Their home base may be in the U.S., may be out of the country, or may be in the U.S. with calls and funds diverted out of the country.  These individuals are hard to trace and hard to track.  Once they have completed the scam and have received the pay-off, they shut down shop and move on to a new location and new victims.

White collar criminals often look and sound very earnest.  They are frequently students of human nature and masters of presentation.  They know what people want and the best way to offer it in order to trick or tempt.   

It is important for everyone to remember that perpetrators can appear very professional, friendly, and knowledgeable.  They may disguise their criminal activity by joining professional organizations or churches, participating in community activities, and forging a false "friendship" with their victims.  This may be especially true in cases of fraud against the elderly.  Be suspicious if a senior family member suddenly finds a new "friend" that convinces the senior to change his or her will, empty a bank account, or sign over investments and/or property.  Children also may be vulnerable to this technique, especially when on-line.  Warn children that the person across the web may not be what he or she claims.  Be suspicious if your child has an on-line "friend" that asks the child to keep secrets or meet in person.  Ultimately, everyone is a potential target, however; many men and women have suffered financial losses in a relationship where one party pretended to be in love while the victim showered the pretender with expensive gifts.

In fact, attempts to defraud are generally more likely to succeed if the perpetrator is known to the victim. Sometimes, as mentioned above, the criminal may insinuate his or her way into a target's life.  Sometimes, the perpetrator may be a casual acquaintance, or a friend of a friend that uses the mutual association to his or her advantage.  In other cases, a swindler may first approach one individual and convince him or her to participate in a fraudulent opportunity and then pressure the first target to recruit friends and family members. Finally, as difficult as it may be to believe, sometimes individuals actually defraud their own friends and family.  If a family member or acquaintance approaches you with an offer that is too good to be true, investigate it carefully and objectively.  If it is a legitimate opportunity, it will survive the close inspection.  If it is a fraud, you will spare yourself a lot of heartache if you walk away.