In a recent discussion with a friend who boasts of being a con man, we talked about the different layers of cons and why people are susceptible to them. He shared a story about a man who was sold a car by someone other than the owner, which is a common tale in the world of cons. We've heard stories of Nigerians selling airports they don't own and the Eiffel Tower being sold multiple times by conmen. In each of these stories, the con artist promises more than they will deliver. If someone tries to sell you a $50,000 car for $10,000, this should raise suspicion since it's either the car is not in demand or the seller is insane. As a rule of thumb, if something sounds too good to be true, it probably is.
Another type of con involves victims who are seeking a solution to a problem, such as a housing crisis or a high-interest savings account. These type of con rely on social proof to build trust and credibility so they use well-known institutions or leverage relationships with notable individuals to legitimize themselves. In Sierra Leone they often use well known politicians or sometimes even the sitting president. These cons also use multiple layers of disguise, such as fancy offices, big opening day events, and intense marketing campaigns, to pull off their scams. Hence, to execute this type of con, a large starting capital is needed, but the return on investment can be unbelievable.
For example, let's consider a real estate con. The first step would be to set up a real estate company and hire marketing experts to promote the brand. Then, arrange public meetings with a well-known government official, such as the president, to legitimize the brand further. Finally, organize a big opening day event on the first and probably the only land they will ever acquire, inviting well-known individuals to give speeches and further bolster the brand's legitimacy.
The product being sold is a house, which will be built only after making monthly payment until 30% of the total cost of the house is reached. Alternatively, customers can pay the full 30% down payment, and the house will be built in a month's time. Notice how all the options require payment to the con artist, who then delivers the product later. Let's look at the numbers. Suppose the average cost of a house is SLL1,500,000 or $75,000, and the down payment is 30% or SLL450,000 or $22,500. If 1,000 people pay SLL5,000 for 12 months, the con artist will receive SLL60,000,000 or $3,000,000. These projections are based on just 12 months and 1,000 people. To make the con believable, the con artist could build a few houses for those who have paid the 30% down payment and have their marketing team organize opening day events for these houses. This will further add to their believability, leading to more sign-ups and more monthly payments. The core idea of the con is that a majority of the customers will be stuck making monthly payments for years for a house that will only be built when the 30% is reached. This type of con will specifically target middle income earners.
The EAP group of companies is allegedly a classic case study when it comes to social engineering cons. The company made a big splash when it started operations. Rented a fancy office in one of the most luxurious buildings in the capital. The owner of the company had meetings with the President and other notable government officials. On their official launch they had guests like the commissioner of the anti corruption commission. The EAP group of companies also established relationship with several commercial banks. On their website the EAP group of companies have a list of project that they have done and non of it real. On this website they also have a list of subsidiaries they own and you can guess that is not real as well. The motherland city project is a real estate project and the first project the company launched. In the motherland city you can own a house for as low as SLL120 a day, that is SLL3,600 a month with total payment of SLL432,000 it will take you 120 months (10 years) to finish payment and 36 months (3 years) to pay 30% of the total outright payment. This option is for the basic two bedrooms, and best part is you pay zero down payment!
The EAP group of companies has been ordered to seized its operations and owner of the company declared wanted by the anti corruption commission.
In a place like Sierra Leone, a product like this will always have unsuspecting customers because almost all the middle income earners wants to own a house, but they don't have the money to buy the land, let alone build the house. Social Engineering cons like this often rely on people's desperation, exploiting their vulnerabilities to gain their trust and ultimately defraud them of their money. Therefore, it's essential to be vigilant and cautious when presented with too-good-to-be-true offers. Be skeptical and do your due diligence.
Government also has a responsibility to protect its citizens from scams. Government especially has to be wary about companies that wants to take deposits and provide investment services. Whilst we want to encourage private investment, we must do so cautiously and vet that these companies and their ambitious financial models don't take advantage of citizens.
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