Name
Stockmarket Tips

Aka
Divided returns, sports tipping, computer prediction software

Crew
One or more

Victims
Gamblers on the stockmarket or sports.

The Scam
The con artist sends an email to his victim telling them he can pick which stocks will go up and which will go down. On five seperate occasinos, the victim receives a tip which does go up or down exactly as the con artist predicts. The victim, amazed by this success, buys the con artist's special system. In actual fact, the system is worthless.

The way in which the scam works is for the con artist to send out, for example, one million emails. Of those emails, half say the stock will go up and half say the stock will go down. He is correct for 500,000 people. He does this again and this time is correct for 250,000 people. By the fifth email he has been correct 100% of the time for 30,000 people. Of those 30,000 it is easy to find people to buy into his system.

The system is either useless or provides common advice and information such as the martingale system for gamblers.

Few of the victims seem to realise that if these systems really worked, the con artists would be out there using them, not selling them to suckers.

Variations
The same scam can be used to sell sports tips (e.g. which team will win) or gambling tips (how to win at roulette) and can be sold via mail or in person.

Traditionally, this system was sold in person by a con artist at the race track. He would approach several people with a tip for the next race saying a particular horse would win or place. He would end up being correct for only one person who would buy the con artist's worthless system.

Take
These systems sell for $50-$500.

Keywords
Stockmarket, gambling, short con, internet, spam, sports, investments, betting systems

Created by Nicholas J. Johnson
Australia's Honest Con Man
www.conman.com.au