With the value of money decreasing with time, it is important to note that millionaire in definition means a person who has a million dollars or equivalent.
What is a million dollars. A middle income earner will take twenty years to earn it. The lay man will take forty years to earn it. You might take your entire working lifetime to make a million dollars, and you will most certainly spend it as fast as you earn it. At the end of it all, you might not have much left.
To have at one point in time, a million dollars worth in assets is quite an achievement in inself.
However, the basics are simple. A first step is to realise that you can be successful like any great capitalists. Just being yourself is enough, but there are some simple attitudes to follow.
Starting with not getting obsessed about being a millionaire. Obsession is unhealthy. Its is better if you don't mind making money, but better still if you find it enjoyable.
You should also realise that money making is not a life. You can be whatever you want and still be a part time millionaire. Remember that money is a means and not an end. So, making money for the sake of making money is really pointless. It is not healthy to ponder about making money twenty four seven at all.
Top 13 Online Money Scams To Date
There are a few simple rules on the internet to stay safe, you money more precisely. Billions are lost every year from ignorant people who complain only to deaf ears. We as a human society have let our guard down, assuming this peace time means that we will stay safe. Scammers now prey on our greed and our domestication, the inability to stand up for ourselves. The simple rules are:
1.Never be tempted by rewards with no risk. The higher the risk, the higher the return. If there is no risk, then there must be no return! (Wow, came out quite nicely no?)
2.Never Never Never give out your credit card information, mothers maiden name or anything for that matter.
3. Keep you internet credit/account balances separate from yuor savings. Use a cheque account to do your online business.
4. Be vigilant. Notice the links, the email addresses. If they look fake, they most likely will be dodgy.
5. Do not pay for anything that promises too high a return, like work from home courses etc.
Anyway, throughout human history, one eternal truth has emerged: where there are hordes of people, there will be scams. Rarely has this been so evident than on the Internet, which offers special advantages (namely lack of face to face contact) to scammers that no other medium can. When the only barrier between your bank account and an unscrupulous con man is a glass monitor or laptop screen, it’s no wonder Internet scams have become one of the largest sources of crime in the young 21st century. Today we will look back on 13 of the top Internet scams of the 2000’s and what makes them so attractive to their targets. Have you been a victim?
Plenty of people were uncomfortable with the idea of conducting their bank affairs online at first, and it looks like some of those fears were well-founded. Using a tactic known as “phishing”, some nefarious scammers actually go to the trouble of creating impostor websites that appear to belong to known banks like Wachovia and Bank of America. Victims are lured to the imposter page via e-mails that are carefully constructed to seem like the actual bank sent them, typically containing messages like “the bank has recently undergone a security audit and needs you to confirm your username and password.” Once you input this information at the impostor site, the scammer has everything necessary to empty your bank account into his own.
4.Fake PayPal Sites
The online payment service PayPal has exploded in popularity as Internet commerce became the norm. Most online merchants and all of eBay accept PayPal, and many people now have their bank accounts hooked up to the service’s database. Unfortunately, this has made PayPal’s millions of users into attractive targets for con artists. In much the same manner as bank scams, the scammer sends you an e-mail that looks and feels like it came from PayPal itself. Most commonly, this e-mail states that you are required to input your username and password for a “routine security check” or a similar reason. Those who take the bait soon find that their entire PayPal balance has been siphoned away. And while many assume the authorities (or PayPal itself) have rock-solid procedures for catching the perpetrators, it is actually quite rare for them - or the lost money - to be recovered.
5. Work From Home
A slightly different Internet scam is the “work from home” hoax. This scam permeates the Internet under countless guises, including mailing envelopes from your desk, easy money on eBay, and affiliate marketing (which is viable but far more difficult than advertised.) The usual procedure involves the victim being pitched on the wonderful 9-5 escaping opportunity they are about to receive. At this point the victim is asked to pay a fee for entrance into the “program” or for a “course” to be shipped to their doorstep. A popular version of this currently making the rounds is the “I get paid to post links on Google” pitch, which is a grossly oversimplified way of saying that you can profit by running Google AdSense ads on a webpage. Virtually none of these programs even come close to the results they promise, but the sale and purchase of them continues unabated.
6. Postal Forwarding/Reshipping
It’s bad enough when a scam endangers one’s bank account, but when it potentially endangers your freedom, insult is quickly added to injury. Such is the case with postal forwarding and reshipping scams. Here’s how it usually works. You (the victim) see an ad online from someone seeking a “correspondence manager.” Answering the ad produces a story from this person about how they run an offshore corporation that needs someone in the U.S. to take possession of goods sent to them and reship these items elsewhere. Victims may also be asked to accept wire transfers into their bank accounts. What actually occurs is that these people order merchandise online using stolen credit cards and ship the goods through you to distort the money trail of who did what. Whatever money you make from this scam is overshadowed by the very real possibility of the FBI banging down your door during the investigation.
7. Free XBox, iPod, etc.
Driving citizens and authorities crazy since about 2006 have been the still-prevalent “Free Xbox” scams. The usual pattern here involves a banner ad exclaiming that you have been selected as the winner of a free XBox, iPod, or other desirable consumer good. Clicking the ad takes you to a webpage restating the same promise but also requesting your debit card information so that the benevolent website can cover its shipping charges. By this point you should begin to see the writing on the wall: the promised item never arrives, random charges begin appearing on your bank statement, and as PCWorld puts it “the only thing that gets shipped and handled is your identity.”
8. Auction Frauds
According to the FBI, auction fraud scams accounted for more than 70,000 complaints last year - more than one in four. There number and variety of auction scams is limited only by imagination, but common variants include misleading product descriptions that don’t match what you receive, passing off counterfeit versions of designer clothing, or simply not receiving anything after paying the winning bid. Also widespread are what is known as “second chance scams”, where the loser of an auction is given the opportunity to buy the item at a reduced price by giving the seller his bank account information for a “wire transfer.” Needless to say, the only transfer that takes place is the one shoveling the money in your account into theirs.
While not as common today as, say, back in 2003-2005, spyware is still a major source of web-based fraud. A spyware program generally foists its way onto your computer through security holes or as a silent bundle with something you wanted to download, such as a screensaver. Once on your computer, the spyware proceeds to sponge off its resources to serve its own needs, such as by displaying advertisements or harvesting your credit card numbers as you shop or bank online. Insidious types of spyware have included Gator, Xupiter, LOP.com and CoolWebSearch, each of which is discussed in painful detail on SpywareInfoForum.com.
10.Advanced Fees For “Guaranteed” Loans or Credit Cards
At this point we should attach a warning: anything or anyone asking you to pay a fee in advance is setting you up to get hosed. The latest in a long line of scams to follow this format is charging you advance fees for “guaranteed” loans or credit cards. To hook you, a professional-looking website claiming to represent Visa or MasterCard promises that a pre-approved credit card is waiting for you if only you’ll pay a fee to “cover the paperwork” or a similarly official-sounding purpose. As About.com points out, “if only one in every thousand people fall for this scam, the scammers still win several hundred dollars. Alas, far too many victims, pressured by financial problems, willingly step into this con man’s trap.”
11. Lottery Scams
Online lottery scams are particularly easy to put over on people, given the widespread popularity of offline lottery tickets and prizes. Very simply, a scam artist will send an e-mail (or display a banner advertisement) stating that you have won a lottery - perhaps with a prize in the hundreds of thousands or even millions. This is a fantasy many people are desperate to believe and so it requires very little coaxing to have them key in their bank account information to take possession of the windfall they’ve been chasing all their lives. Of course, once this information resides with the scammer, anything from bogus charges to full-fledged emptying of the victim’s bank account to identity theft ensues.
12.Disaster Relief Scams
Most of us are horrified and sympathetic when natural disasters like Hurricane Katrina devastate a region. Naturally, many are eager to offer whatever help or assistance they can to the victims, including financial support. Sadly, the scammers of the world have seized upon this as yet another opportunity to channel our good intentions into a windfall for themselves. Fake websites and e-mails are now routinely sent around whenever disaster strikes, tugging at the heart strings of everyday people to send whatever they can. Naturally, all money “donated” through these websites goes straight into the pockets of a con artist, never to play even the tiniest role in disaster relief.
13.Travel Scams
Warm weather brings spring cleaning, new love, and now, scams! Capitalizing on everyone’s desire to vacation in beautiful foreign destinations, perpetrators of this scheme construct websites that promise to deliver you discounted air or hotel fares to the destination of your choice. Usually the victim is promised an extremely desirable rate that expires tonight, leading you to book the unbeatable “deal” right away. What you don’t realize is that “tonight” is simply any night that you visit these websites - the date on the screen is controlled by a piece of JavaScript that automatically designates today’s date as the “last day” of the sale. Furthermore, the discounted rate you receive often comes with strings attached. For instance, a rock bottom air fare might be accompanied by a hotel stay that costs several times what you would get elsewhere.
1.Never be tempted by rewards with no risk. The higher the risk, the higher the return. If there is no risk, then there must be no return! (Wow, came out quite nicely no?)
2.Never Never Never give out your credit card information, mothers maiden name or anything for that matter.
3. Keep you internet credit/account balances separate from yuor savings. Use a cheque account to do your online business.
4. Be vigilant. Notice the links, the email addresses. If they look fake, they most likely will be dodgy.
5. Do not pay for anything that promises too high a return, like work from home courses etc.
Anyway, throughout human history, one eternal truth has emerged: where there are hordes of people, there will be scams. Rarely has this been so evident than on the Internet, which offers special advantages (namely lack of face to face contact) to scammers that no other medium can. When the only barrier between your bank account and an unscrupulous con man is a glass monitor or laptop screen, it’s no wonder Internet scams have become one of the largest sources of crime in the young 21st century. Today we will look back on 13 of the top Internet scams of the 2000’s and what makes them so attractive to their targets. Have you been a victim?
1.Online Casinos
2.Nigerian 419 Scams
3.Impostor Bank Websites
4.PayPal Hoaxes
5.Work From Home
6.Postal Forwarding/Reshipping
7.Free XBox, iPod, etc.
8.Online Auction Frauds
9.Spyware
10.Advanced Fees For “Guaranteed” Loans or Credit Cards
11.Lottery Scams
12Disaster Relief Scams
13.Travel Scams
Why do these scams still persist? Well, it has everything to do with statistics. Out of a million people, there is bound to be one person whom you can con. So, as the internet keeps growing, there is always a number of people who can be fooled.
Read on..
1.Online casinos
In 2005 alone, online poker sites made a hefty revenue of just under US$2.4 billion =$2,400,000,000. This is daylight robbery as this money comes from innocent people. People nowadays are manipulated by greed and messages of rewards to alleviate their situation. Imagine what if you add up the takings from black jack, roulettes and other funny things that casinos can offer. To me, online casinos are the biggest scam in the world. It no the fault of the casino operators however, as many people are tempted into gambling away their income. The only way to make money from gambling is to turn professional. That means understanding the risks involved. I don't know about you, but I have tried some roulette simulations that advertises $1500 a week gambling. I did not go to real money. I wonder how many people fell for that one. Remember, its a win lose situation, if the casinos win..
2.Nigerian 419 Scams
One of the most talked about Internet scams of all is the Nigerian money scam, also known as the Nigerian 419 scam for the part of Nigeria’s penal code that prohibits the practice. Essentially, these scams are carried out in the following manner: you (the victim) receive an e-mail from someone claiming to be an exiled dignitary, perhaps a prince or queen who was forced to leave their home country due to political turmoil. But there’s hope! With your assistance and bank account information, this ex-big shot can loot a fortune (anywhere from one to one hundred million dollars) out of his former country and split it with you for your troubles. Amazingly, one website estimates that enough people have fallen for this scam that a total of $32 billion was lost through 2007.
3. Fake Bank Websites
One of the most talked about Internet scams of all is the Nigerian money scam, also known as the Nigerian 419 scam for the part of Nigeria’s penal code that prohibits the practice. Essentially, these scams are carried out in the following manner: you (the victim) receive an e-mail from someone claiming to be an exiled dignitary, perhaps a prince or queen who was forced to leave their home country due to political turmoil. But there’s hope! With your assistance and bank account information, this ex-big shot can loot a fortune (anywhere from one to one hundred million dollars) out of his former country and split it with you for your troubles. Amazingly, one website estimates that enough people have fallen for this scam that a total of $32 billion was lost through 2007.
3. Fake Bank Websites
Plenty of people were uncomfortable with the idea of conducting their bank affairs online at first, and it looks like some of those fears were well-founded. Using a tactic known as “phishing”, some nefarious scammers actually go to the trouble of creating impostor websites that appear to belong to known banks like Wachovia and Bank of America. Victims are lured to the imposter page via e-mails that are carefully constructed to seem like the actual bank sent them, typically containing messages like “the bank has recently undergone a security audit and needs you to confirm your username and password.” Once you input this information at the impostor site, the scammer has everything necessary to empty your bank account into his own.
4.Fake PayPal Sites
The online payment service PayPal has exploded in popularity as Internet commerce became the norm. Most online merchants and all of eBay accept PayPal, and many people now have their bank accounts hooked up to the service’s database. Unfortunately, this has made PayPal’s millions of users into attractive targets for con artists. In much the same manner as bank scams, the scammer sends you an e-mail that looks and feels like it came from PayPal itself. Most commonly, this e-mail states that you are required to input your username and password for a “routine security check” or a similar reason. Those who take the bait soon find that their entire PayPal balance has been siphoned away. And while many assume the authorities (or PayPal itself) have rock-solid procedures for catching the perpetrators, it is actually quite rare for them - or the lost money - to be recovered.
5. Work From Home
A slightly different Internet scam is the “work from home” hoax. This scam permeates the Internet under countless guises, including mailing envelopes from your desk, easy money on eBay, and affiliate marketing (which is viable but far more difficult than advertised.) The usual procedure involves the victim being pitched on the wonderful 9-5 escaping opportunity they are about to receive. At this point the victim is asked to pay a fee for entrance into the “program” or for a “course” to be shipped to their doorstep. A popular version of this currently making the rounds is the “I get paid to post links on Google” pitch, which is a grossly oversimplified way of saying that you can profit by running Google AdSense ads on a webpage. Virtually none of these programs even come close to the results they promise, but the sale and purchase of them continues unabated.6. Postal Forwarding/Reshipping
It’s bad enough when a scam endangers one’s bank account, but when it potentially endangers your freedom, insult is quickly added to injury. Such is the case with postal forwarding and reshipping scams. Here’s how it usually works. You (the victim) see an ad online from someone seeking a “correspondence manager.” Answering the ad produces a story from this person about how they run an offshore corporation that needs someone in the U.S. to take possession of goods sent to them and reship these items elsewhere. Victims may also be asked to accept wire transfers into their bank accounts. What actually occurs is that these people order merchandise online using stolen credit cards and ship the goods through you to distort the money trail of who did what. Whatever money you make from this scam is overshadowed by the very real possibility of the FBI banging down your door during the investigation.
7. Free XBox, iPod, etc.
Driving citizens and authorities crazy since about 2006 have been the still-prevalent “Free Xbox” scams. The usual pattern here involves a banner ad exclaiming that you have been selected as the winner of a free XBox, iPod, or other desirable consumer good. Clicking the ad takes you to a webpage restating the same promise but also requesting your debit card information so that the benevolent website can cover its shipping charges. By this point you should begin to see the writing on the wall: the promised item never arrives, random charges begin appearing on your bank statement, and as PCWorld puts it “the only thing that gets shipped and handled is your identity.”8. Auction Frauds
According to the FBI, auction fraud scams accounted for more than 70,000 complaints last year - more than one in four. There number and variety of auction scams is limited only by imagination, but common variants include misleading product descriptions that don’t match what you receive, passing off counterfeit versions of designer clothing, or simply not receiving anything after paying the winning bid. Also widespread are what is known as “second chance scams”, where the loser of an auction is given the opportunity to buy the item at a reduced price by giving the seller his bank account information for a “wire transfer.” Needless to say, the only transfer that takes place is the one shoveling the money in your account into theirs.
The above picture shows an auction from one of the websites? Too good to be true? You bet. The company charges 50 cent to raise the auction price by one cent. So every 2 cent is actually a dollar's price. So 2 cents auction= 1 dollar real money and every 1 dollar in the auction is actually 50 real dollars!! So one can easily tell that the item is way over priced. And once you push up the bid, your money is gone. This will push you to bid higher and higher. Knowingly, each bidder do not want to lose their bid and so will bid even more. Every bid keeps the timer going until there is one bidder left. The ones that come second and downwards all lose their money! 1 bid can make $26,000 for the company. Worth your money??
9.Spyware
9.Spyware
While not as common today as, say, back in 2003-2005, spyware is still a major source of web-based fraud. A spyware program generally foists its way onto your computer through security holes or as a silent bundle with something you wanted to download, such as a screensaver. Once on your computer, the spyware proceeds to sponge off its resources to serve its own needs, such as by displaying advertisements or harvesting your credit card numbers as you shop or bank online. Insidious types of spyware have included Gator, Xupiter, LOP.com and CoolWebSearch, each of which is discussed in painful detail on SpywareInfoForum.com.
10.Advanced Fees For “Guaranteed” Loans or Credit Cards
At this point we should attach a warning: anything or anyone asking you to pay a fee in advance is setting you up to get hosed. The latest in a long line of scams to follow this format is charging you advance fees for “guaranteed” loans or credit cards. To hook you, a professional-looking website claiming to represent Visa or MasterCard promises that a pre-approved credit card is waiting for you if only you’ll pay a fee to “cover the paperwork” or a similarly official-sounding purpose. As About.com points out, “if only one in every thousand people fall for this scam, the scammers still win several hundred dollars. Alas, far too many victims, pressured by financial problems, willingly step into this con man’s trap.”
11. Lottery Scams
Online lottery scams are particularly easy to put over on people, given the widespread popularity of offline lottery tickets and prizes. Very simply, a scam artist will send an e-mail (or display a banner advertisement) stating that you have won a lottery - perhaps with a prize in the hundreds of thousands or even millions. This is a fantasy many people are desperate to believe and so it requires very little coaxing to have them key in their bank account information to take possession of the windfall they’ve been chasing all their lives. Of course, once this information resides with the scammer, anything from bogus charges to full-fledged emptying of the victim’s bank account to identity theft ensues.
12.Disaster Relief Scams
Most of us are horrified and sympathetic when natural disasters like Hurricane Katrina devastate a region. Naturally, many are eager to offer whatever help or assistance they can to the victims, including financial support. Sadly, the scammers of the world have seized upon this as yet another opportunity to channel our good intentions into a windfall for themselves. Fake websites and e-mails are now routinely sent around whenever disaster strikes, tugging at the heart strings of everyday people to send whatever they can. Naturally, all money “donated” through these websites goes straight into the pockets of a con artist, never to play even the tiniest role in disaster relief.
13.Travel Scams
Warm weather brings spring cleaning, new love, and now, scams! Capitalizing on everyone’s desire to vacation in beautiful foreign destinations, perpetrators of this scheme construct websites that promise to deliver you discounted air or hotel fares to the destination of your choice. Usually the victim is promised an extremely desirable rate that expires tonight, leading you to book the unbeatable “deal” right away. What you don’t realize is that “tonight” is simply any night that you visit these websites - the date on the screen is controlled by a piece of JavaScript that automatically designates today’s date as the “last day” of the sale. Furthermore, the discounted rate you receive often comes with strings attached. For instance, a rock bottom air fare might be accompanied by a hotel stay that costs several times what you would get elsewhere.
However, if you do get on the flight, and become a courier, becareful what you are carrying. I have a relative who couriered a package to Korea, but when customs checked the contents, it was drugs. He was jailed for 6 years just for innocently being courier for some extra cash.
Market Basics
| Market | Money | Bond | Equity | Foreign Exchange |
|---|---|---|---|---|
| Role | Short Term Funding 30 to 120 days | Medium to long term funding for governments and corporations 1 year to 20 years | Obtain part ownership of a company Indefinetely | Facilitate overseas payments and borrowings |
| Instruments | Unsecured Promissory Notes Certificates of Deposit Commercial Papers Bank Accepted Bills Treasury Notes Bill Facilities Repurchase Agreements | Government bonds Semi government bonds Non-governmental bonds | Public Offerings Private Placements Stock and shares Rights Issues | Currencies Forward rate agreements |
| Price Discovery | Short Term Funds Bank Bill Reference Rate Bank Bill Swap Rate London Interbank Offer Rate | Reveals cost of long term funds Cash Rate | Reveals market value of company | Reveals purchasing power and market value of a currency |
| Risk | Short holding period Interest Risk Tradable in markets | Default risk on coupons Long term uncertainty | High market risk Traders use stop orders | High market risk Corporations use forward rate agreements |
| Return | Pays Simple Interest | Pays coupons over holding period and face value at maturity or | Pays dividends and prices of stock may soar | Invest in currencies for appreciation |
| Repayment Priority | Form of debt, so priority over dividends | Priority over dividends | Residual Claim | - |
| Information Asymmetry | Low risk participants | Future Prices Unknown | Other parties better informed Insider Trading | Other Dealers better informed |
| Participants | Governments ADIs Large corporation Low risk borrowers | Governments Large corporations Banks and financial nstitutions Fund managers, local and overseas | Companies seeking capital Investment banks General Public | FX Dealers Multinational Corporations |
| Primary Market | Wholesale | Tendered by governments Issued by non financial corporations | Issued by companies at IPOs to investment banks | Traded at Foreign Exchange by dealers |
| Secondary Market | Not open to public Can be traded for liquidity | Traded publicly for liquidity | Traded at stock exchanges around the world | Retail purposes |
| Role of Authorities | Central bank enforces monetary policy by: Trading treasury notes Setting target cash rate | Raise funds via taxes | Ensure corporate integrity and fair up to date reporting | Stabilise currencies by buying or selling |