The multi-faceted threat of fraud? Are you up to the challenge?
The inability to definitively quantify the total size of global frauds should not minimize the substantial financial impact they inflict. Informed by the growth of the fraud detection and prevention market, rising from USD 30.65 billion in 2022 to a projected USD 129.17 billion in 2029, it is evident that fraudulent activities remain a significant concern.
The estimated financial impact of global fraud, encompassing credit card fraud, insurance fraud, identity theft, and internet fraud, could reach into hundreds of billions, or even trillions of dollars.
An article from The Economist, dated May 10th, 2023, titled "What to Read to Avoid Getting Hoaxed?" lists five books on history's most notorious swindles, ranging from Hitler's diaries to modern-day Instagram scams.
A case in point is Anna Sorokin, who crafted a social media façade that an Investment Manager could potentially emulate to fabricate an entirely fictitious business track record online.
Sorokin, born in Russia, assumed the persona of Anna Delvey, a wealthy socialite, in New York. Between 2013 and 2017, she defrauded banks, hotels, and individuals who believed they were her friends, to the tune of hundreds of thousands of dollars. By persuading them she was extraordinarily wealthy, she had little difficulty persuading others to fund her lavish lifestyle.
Rachel DeLoache Williams, a Vanity Fair employee, fell into Sorokin's trap, costing her $62,000. Williams, already familiar with Delvey from her opulent Instagram posts, was enticed by her talk of family trusts and setting up charitable foundations. The truth only became apparent when Delvey absconded during a luxury vacation, leaving Williams with the bill.
Williams' experience serves as a stark reminder of how easily social media can be used to craft a convincing alternate reality. Sorokin simply took it a step further.
In essence, be wary of any investment manager showcasing their success.
Their reality may be as authentic as Anna Delvey's.
Be prepared by becoming financially literate!
#FinancialLiteracy#personalfinance#finances
