Scam Psychology: the echo chamber effect (and how it turns you into a recluse)

That's sheeple. Does that look familiar to you?
(Photo credit: hermetic hermit)

MLM is all about your "team", team spirit and camaraderie, don't let the team down, we'll be there for you, blah blah blah.

But have you ever considered the NEGATIVE effects of a team environment?  (Or is that merely "negativity" to be avoided?)

When you are in a social group such as a team, clan, whatever, you automatically try to fit in. You will conform yourself to the team, just as the team will conform to you. You will all have to same position, same opinion, etc. You may have differences in minor details, but you will go along on the "big stuff".

You are suffering from the "echo chamber effect", because you only hang out with people that you think have similar ideology to yours. Your ideas are echoing back to you, and other people's ideas are passing through you, and being echoed back to them. Soon everybody think alike, and like seeks like. Such things does NOT happen when you have a mix of people holding opposite views and have a nice proper discussion of the issues.

The advent of internet only made it EASIER for like to seek like. You can find all sorts of bull**** on the Internet nowadays, and forums hosting such. If you can't find one, start one yourself. People will agree on absurd topics such as "ISIS has infiltrated every church in America" to "school shootings were staged with shill mourners".

After a while in the echo chamber, you will suppress your own thoughts because you reasoned that the your group would never accept your "anti-group" thoughts. That's known as the Semmelweis Reflex.

That's fine when the ideas are logical and proper, but when they are not, it can be very dangerous.

Scammers have understood this for a long time. They are out seeking sheeple who hadn't gotten wise to the schemes, esp. when the scheme caters to one of an universal wants: trying to make one's life better.  However, scammers will pervert such wants into feeding your fears and sell you a bogus solution.

Scam Tactics: The Galileo Gambit

Does everyone remember who Galileo Galilei is? He's the one who taught heliocentrism (the sun is the center, not Earth) and was persecuted by the Roman Catholic Church because heliocentrism ran counter to the Biblical literalism of the time (that Earth is the center and everything revolves around Earth).

So what is Galileo Gambit? An argument tactic that combines three separate fallacies (appeal to minority, appeal to authority, conditional fallacy) in one concise package. 

They made fun of Galileo, and he was right

They make fun of me, therefore I am right.

Galileo Gambit is generally used to dismiss the "widely held truth". Creationists and Climate change deniers often use Galileo Gambit and claiming persecution. (Indeed, Rick Perry sparked controversy when he claimed that science on climate change was 'not settled yet' in 2011 and added "Galileo got outvoted for a spell")

There is a variation called Semmelweis Gambit that was often used by "alternative medicine", or otherwise known by its less complimentary acronym, SCAM (supplemental, complementary, and alternative medicine).  Ignaz Semmelweis was a doctor that provided the start of germ theory in 1800's Vienna, but his views were not accepted during his time and he died a broken man, with his views only came into acceptance after his death.

Another variation is known as "Three Stages of Truth" often misattributed to Arthur Schopenhauer (who never wrote such a thing). Let us look at an example:

Here is one form of it used in a recent... suspect scheme (that had since collapsed.)

Commentary: How MLM affects the current presidential campaigns

While politics is usually quite far from the world of multi-level marketing, presidential campaign is big enough that anything anybody ever did figures into the equation, and in this case, two of the presidential candidates have direct ties to MLM... Donald Trump, and Ben Carson.

Those of you who had watched "Celebrity Apprentice" should recall that ACN, the MLM telephone company, was featured on the show... twice.  And Donald Trump even had his own MLM, "Trump Network", which nobody hears about any more.

What you may not remember is Ben Carson previously offered testimonial that Mannatech stuff helped him in his battle with prostate cancer... since 2004.

And let's not forget how big some of these MLM businesses are... and they donated HEAVILY to Republican candidates of all levels. It's already documented that co-founder of Amway, Richard DeVos and two family members donated 25K per person to Scott Walker's campaign AND unknown amounts to Jeb Bush's campaign. When Mitt Romney ran he had support of Amway, NuSkin, and Xango, all big name MLMs.

So, what are some facts about ACN and Mannatech, and perhaps, related to Donald Trump and Ben Carson, that you don't know, but should?

Let's start with ACN and Trump

ACN / Trump

Did you know that in 2010, the average ACN Canada participant takes home about $41.00 per month? That's directly off their website:

"The average ACN Canada active IBO in 2010 earned approximately $500." -- ACN Canada website 

As it is 2015, and there is no update, clearly the figure had not risen (and may even have FALLEN!)


Did you know that despite ACN having sponsored Celebrity Apprentice twice, Donald Trump was quoted by Wall Street Journal of saying, "I (Trump) know nothing about the company (ACN) other than the people who run the company, I’m not familiar with what they (ACN) do or how they go about doing it, and I make that clear in my speeches."

This is also interesting considering that Trump allegedly boasted to WSJ that for a speech at an ACN event he got $2.5 million back in 2008, and pocketed another $1.3 million for 3 more recent (and presumably shorter) talks at ACN events.

BREAKING NEWS: Jeunesse banned in Malaysia, website blocked at national level

According to users in Malaysia, as relayed to JusticeAlwaysLate on Facebook, any one attempted to access Jeunesse Global website (jeunesseglobal.com) from Malaysia is greeted with the following message:

JeunesseGlobal.com blocked in Malaysia by government order
for violation of Control of Drugs and Comestics Regulations 1984

Jeunesse lists an office in Malaysia on their contact us page. The status of that office is unknown at this time.

MLMSkeptic will bring you the latest news as soon as it becomes available.

Related articles

• More Idiots Who Don't Check the Information They Pass On: UFUN Edition
• How to Scam a Scammer
• Scam Psychology: How does a scam encourage people to adopt a lost cause?
• A Common Scam Defense: Similarity Between Homeopathy Advocacy and HYIP promotion

Scam Basics: Do you "Google" your upline, the company leader, and so on?

Do you Google your own name as well as those people you know? Come on, everybody does. People who go on dates google each other's name, or even the photo, just to make sure they're not being catfished.

So why aren't people Googling their MLM uplines, and businesses googling their customers, and so on?

(NOTE: Yes, I'm using "Google" as a verb, meaning "to search online, probably using Google search". You are welcome to substitute Yandex , Baidu, or whatever your favorite search engine may be. )

A few years ago I wrote about "due diligence", and the case of Janamjot Singh Sohdi and his scam, and how he managed play an investment advisor and defrauded about a thousand people out of 2.5 million dollars despite having a long rap sheet such as having investment broker license revoked, disbarred from NYSE, and so on.  All of which can be easily Googled.

In the same article, I also wrote about the suspect scheme of "Phil Ming Xu" called WCM777, and how Xu was linked to the "Vantone scam" in China. WCM777 was eventually closed by SEC.

How did I found out that Xu was linked to Vantone scam in China?

I "googled" it, of course.

And it seems that's way more due diligence than most people bother to exercise, even bankers who's supposed to be following Federal "Know Your Customer" guidelines.

Have you ever heard of Daniel Filho? How about his full name: Daniel Fernandes Rojo Filho? Still no? How about his company, DFRF Enterprises (named with his initials)?  Yes, it's a scam, closed by the SEC in June 2015.  But what ELSE did you find out through Googling?

Scam Tactics: Sell the Hype and the Opportunity, Ignore or minimize the Reality and the Cost

Scams usually hook you by selling you the hype and how much money you can make (i.e. the opportunity), while minimize or ignore the reality (such as risk, market, etc.) and cost.

I'll just go over some recent examples and show you what sort of **** they had to spread to generate hype about their so-called "opportunity" while ignoring reality.


The "Internet TV" biz clones

In 2015, over half dozen "internet TV box" companies popped up advertising stuff like "watch your favorite TV for free, cut your cable TV bill, watch favorite sports"... etc. They want you to pay them about $300-500, and for every people you enroll (who also pay them $300-500) you earn money, possibly $100 or more per person. They go by names that includes words like "Box" "Stream" and so on.

That's a pyramid scheme, folks. I've covered what's a pyramid scheme before, so I won't repeat that here. Let's discuss the hype instead.

The matter of fact is you can buy TV boxes like these for about $50-75 on Amazon. They are all based on KODI (used to be XBMC) any way, and wholesale from China they cost even less. You can probably hire some kid to program it for you for another $10-25 if you don't to spend time on it. So where does the extra $200+ go? To the company and whoever recruited you, of course.

TL;DR = you got something for $300 (or more).that you can buy for $60 (WTF?!)

AND you can get better and more legal boxes for $100 (Roku, Amazon Fire Stick, Apple TV, etc.)

They all advertise (some more blatant than others) that they can get pay-per-view programs and subscription programs for free. They tell you people are already doing this, boxes "like" this are being marketed by Amazon and Roku and others (except those don't pirate and cost less than $100). They count on you having "heard" of such stuff, but having NO detailed understanding of such. it sounds "vaguely familiar".

What they don't tell you is getting stuff "for free" is actually piracy and that breaks so many laws that you'll be personally held responsible for such.  And it's no joke, there already has been a raid in UK on seller of such boxes. And let's not forget RIAA and MPAA and so on suing grandmas and so on for astronomical sums.

The schemes hyped up the benefits (OMG FREE EVERYTHING!) and potential upside (OMG MAKE MONEY WHILE HELP OTHERS 'SAVE' MONEY!) while minimizing and hiding reality (The boxes cost $60 on Amazon) and risks (it's illegal to pirate and you can get sued).

TL;DR version:

Hype / Opportunity: OMG Make money, save money, no more cable TV!

Reality / Cost: Overpaying by 3-600%, piracy is illegal

Coming next, "cryptocurrency biz"

Scam Hilarity: How Gemcoin Scammer "Interprets" the American Justice System (HINT: It's VERY hilarious)

In the interest of all Gemcoin sheeple or perp, Chinese or otherwise, this post will be bilingual.

爲了大家的利益，珍寶幣是真是賤，讀者在中國或外國，以下中英雙文對比．

Recently there were a post on Sina blog (PDF linked) that claimed "there was no FBI raid" at USFIA and "SEC was just doing routine inspection". I took a look. It's hilarious. This clearly written by someone with "motivated reasoning".

最近有在新浪博客的一篇文章 (PDF) 聲稱美國富豪USFIA “沒有被FBI調查”和“美國證券交易委員會只是做例行檢查”。我親自看一看。它真的好笑。這顯然是“有動機推理”的人寫的。

Due to size constraints, I'll just explain the important parts. I don't quote out of context.

由於尺寸的限制，我選重要部份解釋。我不斷章取義。

What he wrote will be in blue.

他寫的用藍色

First, the title:

第一，文章標題

＂受联合国70周年大会邀请AFG公司副总裁等8人参加了联合国成立70周年大会＂

UN 70th anniversary celebration invited AFG VP et al 8 people to attend

Anyone can take a photo in front of the UN building. There are even shops inside the UN building. These photos of Leonard S. Johnson and two unidentified individuals can only prove they were in New York recently.　It has no other value.

任何人都可以在聯合國大廈前拍照。聯合國大樓內甚至有商店。照片只可以證明Leonard S. Johnson 和兩個身份不明的人最近去過紐約。沒有其他價值．

（FBI的战士们英姿飒爽哦，这张图片被媒体刊登在报端网络，渲染AFG公司被查封。可是，去过美国AFG公司的人一眼就能看出，这显然不是美国AFG公司背景的照片，媒体用好莱坞拍电影常用的移花接木、蒙太奇手法进行创作，实在让我们见识了美国的言论自由）

Translated; FBI Warriors, so fierce, so cool! This photo was published by media, claiming AFG was closed. However, those that went to AFG can see that this is not at AFG. Media use Hollywood fast cut to create false impressions, such as freedom of press in America. 

This photo is of FBI agents assisting in the Boston Marathon bombing in May 2013, when they searched Norfolk St. in Cambridge area of Great Boston.  The actual title of the photo is fbi-norfolk-street-cambridge.jpg  I have seen no American media use this photo with the Gemcoin story. If there is, please point me at the article. Otherwise, I must conclude that the blogger was the one who falsely inserted a photo, exactly what he's accusing "American media" of doing.

這張照片是聯邦調查局探員協助2013年5月波士頓馬拉松爆炸案，他們在搜查諾福克(Norfolk) 街在大波士頓的劍橋(Cambridge)地區。照片的實際名稱是FBI-norfolk-street-cambridge.jpg 我沒有看到任何美國媒體使用這張照片在珍寶幣故事上。如果有請指點我文章在哪。不然我必須定論這位珍寶幣博客才是插入不相干照片捏做新聞用來反指責“美國媒體”捏做新聞。（惡人先告狀）

（这张图片被媒体刊登在报端网络，渲染AFG公司被查封，但这显然不是美国AFG公司背景的照片，媒体用好莱坞拍电影常用的移花接木、蒙太奇手法进行创作，实在让我们见识了美国的言论自由。无怪乎刘因全之流可以肆无忌惮的拼接各种图片在媒体攻击AFG公司。美国报纸竟然和大陆文革中的大字报十分相似可以随便造谣惑众）

Translation: This photo was published by the media claiming AFG was closed by law. This is clearly not AFG in the background. Media use Hollywood special effects creatively and we have witnessed American freedom of press. How dare "Michael Liu" and his ilk publish all sort of photos to attack AFG. American newspapers are much like the hated paper in the Culture Revolution to spread rumors and lies. 

Those of you who can use Google image search will quickly realize this is a photo of the deputies in Lee County Florida. Again, I have not seen this photo in relation with Gemcoin, and again, I have to conclude that this Gemcoin blogger is the one who inserted irrelevant photos to accuse "american Media" of making up news.

那些會用谷歌圖片搜索的會發現這是佛羅里達州李縣(Lee County) 警長部 (Sheriff's Department) 的照片。同樣，我沒有看過此照片與珍寶幣報導有關，再次我必須做結論，這位珍寶幣博客才是插入了不相干照片捏做新聞用來反指責“美國媒體”捏做新聞。（惡人先告狀）

Here comes the hilarious part!

現在才是滑稽的料到了！