{"id":122,"date":"2015-09-30T16:12:36","date_gmt":"2015-09-30T16:12:36","guid":{"rendered":"http:\/\/blog.exodusintegration.co.za\/?p=122"},"modified":"2015-09-30T16:12:36","modified_gmt":"2015-09-30T16:12:36","slug":"how-to-detect-shady-deals-masqueraded-as-good-deals","status":"publish","type":"post","link":"https:\/\/blog.exodusintegration.co.za\/?p=122","title":{"rendered":"– HOW TO DETECT SHADY DEALS MASQUERADED AS GOOD DEALS"},"content":{"rendered":"

Con artists are a menace to society. But their ingenuity is admirable. They are smart and often don\u2019t need to rely on sophisticated schemes to con victims. What makes their devious schemes effective is not so much that their plans are cunning, but mainly because they play on the pride of victims, their fears and trivialisation of common sense defences.<\/span><\/strong><\/p>\n

Dubious business deals are not much different from ordinary deceptive schemes by swindlers. I call them dubious deals because it becomes clear in the end that truth is not necessarily the cornerstone of their foundation. By Nimroth Gwetsa, 30 September 2015.<\/span><\/strong><\/p>\n

The Modus Operandi of Shady Deals<\/span><\/h1>\n

Proponents of such business deals adopt same strategies as those used by ordinary street con-artists. I\u2019ll refer to them as swindlers from now on for simplicity. Swindlers capitalise on the pride of victims, as most people before becoming victims think they are smarter and could not be easily swindled. Swindlers also capitalise on the fear of victims and their false sense of security often caused by their trivialisation of their common-sense defence.<\/span><\/p>\n

SMMEs, mainly because of their lack of capacity to enforce stricter governance controls, are more at risk to such threats than larger corporates would be. SMMEs need not become victims to such swindlers. Neither should they be too paranoid, to their disadvantage, unnecessarily doubting every opportunity presented to them.<\/span><\/p>\n

I have encountered a handful of dubious business deals. Those deals in the end were shown to have lacked any traces of honesty and integrity. A lack of such basic requirements should be a deal-breaker for any serious entrepreneur. Fortunately, I came out unscathed<\/em> in those dealings. I\u2019ve had a few regrets for having wasted valuable time and resources entertaining their initial ideas. Those ideas seemed authentic initially. But in the end, they were no different from any other gutter<\/em> business deal masked with visible doses of goodness<\/em>.<\/span><\/p>\n

I noticed a common pattern used by swindlers in some business deals I deemed shady. The pattern of the approach by swindlers is what I believe makes their strategies effective. You\u2019ll notice that none of the issues in their pattern are complex, nor require mind-boggling<\/em> counter-strategies to overcome them. Defence against those measures only requires the application of common-sense and basic vigilance based on adherence to sound principles.<\/span><\/p>\n

Let us explore below, essential elements of the pattern swindlers rely on to effect their dubious business deals:<\/span><\/p>\n

    \n
  1. Urgency<\/span><\/strong><\/li>\n<\/ol>\n

    Often, such deals are presented to you much closer to the deadline for finalisation. You are then expected to make a quick decision about your interest in participating in the deal. Proponents of such deals would tell you about how someone they depended on initially had suddenly become unreliable and no longer meets their requirements. You would be told how, to their horror, they also discovered late, the unsuitability of the now rejected participant.<\/span><\/p>\n

    The urgency goes further as you would also be called frequently, while still applying your mind, to give them an indication of what your answer would be. These are nothing but old mental games aimed at tricking you and getting you to commit with little fuss.<\/span><\/p>\n

    When you confront swindlers with difficult questions, they often respond by promising to provide detailed answers once more urgent issues of securing the deal have been resolved. I take this to be their way of getting you to a point of no return<\/em>. That point occurs when the full<\/em> truth gets to be known, but by then, you would sadly be too deeply involved that getting out would appear to be posing far greater risk of losing out all the initial investment.<\/span><\/p>\n

    Impact<\/em><\/span><\/p>\n

    As you would notice, putting pressure on you to make an urgent decision is what gives their strategy some potency. Pressure and attack on you<\/em> would come from different angles. All of which, would be aimed at overwhelming you with information so you have little time to be more discerning.<\/span><\/p>\n

    The urgency of their approach is nothing but a ploy. The ploy would invoke your adrenalin, forcing<\/em> you into a tunnel vision<\/em> so the only decisions you are left to make are \u201cfight or flight.<\/em>\u201d The urgency creates a mental siege<\/em> causing you to feel as if your expected decision is a life-and-death matter<\/em>.<\/span><\/p>\n

    Your defence<\/em><\/span><\/p>\n

    The urgency is the antithesis of rational thinking. Our amazing planet was itself, not created overnight. A simple wine some of us enjoy occasionally and cost a fraction of our resources, is not an overnight creation either. Why then should lucrative deals be decided on without much discernment?<\/span><\/p>\n

    Some say \u201cattack is the best form of defence<\/em>\u201d. Others swear by fortresses as a better form of defence. Discernment is to you, what proactive<\/em> attack<\/em> and fortresses<\/em> are to increased security. Discernment allows you to attack<\/em> anything that seems unreasonable. It also fortifies<\/em> your defence if it is your natural inclination to avoid making on the spur of the moment decisions<\/em>, but well thought through decisions.<\/span><\/p>\n

    Any life changing decision with major financial impact should not be finalised without due regard. Otherwise, it would be the same as giving a signed blank cheque or application form to a retailer. Trust them at your peril.<\/span><\/p>\n

    Learn to be a good listener and always create an environment to be a good listener. Being a good listener, even when overwhelmed with information, means suspending judgement and allowing time to absorb as much information as possible, and applying your mind afterwards. Practice with smaller matters in your life to defer making quick<\/em> decisions. Regular practice would create a good natural habit protecting you from responding impulsively, especially when placed in such difficult situations.<\/span><\/p>\n

      \n
    1. Flattery\/ Charm<\/strong><\/span><\/li>\n<\/ol>\n

      When urgency does not seem to be yielding desired results<\/em>, swindlers invoke flattery. Flattery is sometimes combined with urgency as a twofold blow to your defences. When they notice your interest and curiosity in their story<\/em>, their charm would be intensified. <\/em>Swindlers would intensify their charm, telling you how different they perceive you to be from the other loser<\/em> they had to turn down.<\/span><\/p>\n

      They\u2019d tell you how they somehow forgot your existence and are now regretting not contacting you initially, as they regard you as a more reliable person. You would also find that if swindlers were initially not known to you, they would tell you about how others gave them encouraging feedback about you and the relevance of your participation in their deal.<\/span><\/p>\n

      Impact<\/em><\/span><\/p>\n

      Flattery will<\/em> indeed get you everywhere<\/em>. But \u201ceverywhere\u201d includes hostile territory.<\/span><\/p>\n

      Flattery is aimed at softening your hard stance against asking difficult questions. It induces your guilt and feeling of being ungrateful, especially when it appears your line of questioning raises suspicions about the integrity of their offer.<\/span><\/p>\n

      Flattery is swindler\u2019s effective tool they use to silence you now that urgency couldn\u2019t stop you from discernment. Those thoughts are the reason you are asking those detailed questions, which they are uncomfortable to answer at that stage of the deal process.<\/span><\/p>\n

      Your defence<\/em><\/span><\/p>\n

      One thing said about flattery we need to heed is that \u201ca flattering neighbour is up to no good; he\u2019s (or she\u2019s) probably planning to take advantage of you<\/em>\u201d (Proverbs 29:5, Message Version). If so, we need to be vigilant and to some extent, hard-nosed<\/em> in doing so. Flattery causes us to lower our guard<\/em>. We shouldn\u2019t allow swindlers to detract us from seeking to increase our deep understanding of the nature of the deal. Without understanding, our vulnerability would be heightened, so would be the erosion of our joy and contentment once we are committed.<\/span><\/p>\n

      Now that we appreciate the importance of guarding against flattery, we should not let anything betray or suppress our knowledge of the impact of flattery to our lives. For it is said further that \u201c(k)nowing what is right is like deep water in the heart; a wise person draws from the well within<\/em>\u201d (Proverbs 20:<\/a>5,\u00a0Message Version).<\/span><\/p>\n

      We all thrive on praise and acknowledgement. But such need should not make us haughty either. We need to strive for modesty even when praises are heaped upon us<\/em> so flattery doesn\u2019t divert our attention from important life-changing decisions we need to make.<\/span><\/p>\n

        \n
      1. Name-Dropping<\/strong><\/span><\/li>\n<\/ol>\n

        To increase the effectiveness of their flattery and our desire for praise, swindlers tend to up the ante<\/em> by name-dropping<\/em>.<\/span><\/p>\n

        Impact<\/em><\/span><\/p>\n

        Like flattery, name-dropping rides<\/em> on our desire for acceptance especially by those deemed the greats<\/em>. This desire does not come from our low confidence levels, but as a stamp of approval in our efforts. Knowing that \u201cyou can tell a lot about a person by the company they keep<\/em>\u201d, name-dropping could induce a desire among victims<\/em>, to be among successful people so their success could rub off. Alternatively, it has the effect of inducing in us the desire to avoid being seen to be lacking the wisdom that made prominent people successful.<\/span><\/p>\n

        Your defence<\/em><\/span><\/p>\n

        Name-dropping is nothing but adult\u2019s version of peer pressure youngsters are often exposed to. Peer pressure can never be good for anyone. It\u2019s not too different from bullying.<\/span><\/p>\n

        Unlike children, adults can choose the company they want to keep and be at places they wish to be. Many avenues are available at least to those living in a constitutional democracy, to resolve concerns about bullying.<\/span><\/p>\n

        Knowledge of truth and righteousness should be what we hang<\/em> onto as our defence, rather than give in to the pressure name-dropping imposes on us. Better be taken for a fool, if that means protection from involvement in shady business deals, than be considered wise and have a deal you might live to regret afterwards.<\/span><\/p>\n

          \n
        1. Emotional Blackmail<\/strong><\/span><\/li>\n<\/ol>\n

          Similar to name-dropping, emotional blackmail is when perpetrators make you feel guilty for wanting to observe your basic governance practices, such as maintaining minutes of discussions held and undertakings made. Often, in a raised voice, they would ask sternly, \u201cdon\u2019t you trust us?\u201d Trust is earned. They should not be entitled to it by default. Make them earn your trust without you being disruptive.<\/span><\/p>\n

          Swindlers usually punt \u201cgentleman\u2019s agreement\u201d as some form of tacit agreement you should rely on. They discourage you from explicitly noting your discussions and regard documentation as wasting valuable time to conclude the deal due to the urgency of the transaction. Sheepishly, you are then left to feel guilty as if you are paranoid and are an amateur in getting involved in such business deals.<\/span><\/p>\n

          Impact<\/em><\/span><\/p>\n

          The purpose of emotional blackmail is to get you to relax your vigilance and start doing things you would normally not agree to do unless certain basic rules are observed. Because you feel blackmailed, you would think your insistence on observing some governance makes you a reactionary. You then start giving in to the pressure, and begin hoping you’ll find another opportunity soon to compensate for the lack of governance.<\/span><\/p>\n

          The more you compromise, the deeper you dig yourself in a hole<\/em>, leaving you to feel you have invested much to be pulling out at that stage. And you continue thinking that pulling out would result in you suffering massive unrecoverable losses now and in future.<\/span><\/p>\n

          Your defence<\/em><\/span><\/p>\n

          When you have much to lose, it pays to ignore the noise<\/em> and focus on doing right things right<\/em>. Doing right things means observing basic governance, including having basic (even if on one page) letter of intent signed describing the general spirit of the deal and your involvement.<\/span><\/p>\n

          We shouldn\u2019t promote paranoia, but the last time I checked, even those close to the Messiah and saw many good works He performed, were untrustworthy in the end. They ran away when He needed them the most in His last hour of freedom.<\/span><\/p>\n

          Not that anything written is a guarantee that right things would be done. Explicit record of key issues definitely limits efforts by chance takers from taking advantage of you. It narrows the pool only to the more daring of swindlers. Being conned by more daring swindlers somehow leaves a better taste in our mouths than from run-of-the-mills<\/em> ones.<\/span><\/p>\n

          If you are already trapped in a catch-22 situation because you went against your better judgement<\/em> and realised too late that you got deeply involved in dubious deals, cut your losses. Walk away at that point if you can. Rather incur losses incurred to date and save face<\/em> than suffer more in later stages of your involvement. Further involvement would lead to prolonged and unresolved embitterment.<\/span><\/p>\n

          Your hesitance to cut ties creates false hope that sticking around<\/em> further would limit you from suffering losses and would hopefully recover something later. It’s the devil’s snare. You won’t come out unscathed.<\/span><\/p>\n

            \n
          1. Obfuscation<\/strong><\/span><\/li>\n<\/ol>\n

            Lying is not only when someone deliberately tells you untruths. It is also by omission. Lying by omission is when important truths that could influence your decision if disclosed up front, are withheld from you. Usually, this is done not out of malice, but of proponents\u2019 fear that such up front disclosure would complicate matters for them that could ruin the deal.<\/span><\/p>\n

            When obfuscating, swindlers often focus on the benefits of doing the deal than the cost of the deal. They do not like focusing on what it would take for the deal to materialise.<\/span><\/p>\n

            Obfuscation is worse than fine prints because at least with fine prints, details of the deal are written and available for reading. Lazy people gloss over<\/em> details and end up with dubious business deals. Obfuscation discloses nothing in fine print. You are left alone to discovery the shortcomings of the deal.<\/span><\/p>\n

            When you start asking probing questions, swindlers usually provide parallel answers to questions, answering issues not directly involved in the subject you are enquiring about. They trivialise answering questions you deem important, but prioritise non-urgent and unimportant issues. When you insist on getting them to answer, they would not respond with the same vigour as they had shown when expecting you to respond to their needs.<\/span><\/p>\n

            I see this as their deflection strategy aimed at preoccupying your time with unimportant details. The strategy aims to get you closer to the deadline knowing that this would also invoke the urgency for your response to their need for your participation in their deal.<\/span><\/p>\n

            Impact<\/em><\/span><\/p>\n

            Obfuscation is simply selfishness and covetousness. It is covetousness because they wish to possess something rightfully belonging to others, by their unwillingness to create mutually beneficial terms. Since obfuscation is lying by distorting the true picture, anything founded on a lie cannot be good.<\/span><\/p>\n

            Your defence<\/em><\/span><\/p>\n

            Use simple language and avoid long-winded statements. No question is a stupid question. Seek to understand confusing or loaded<\/em> words. Loaded words are words with multiple meanings that might result in misunderstandings. Break complex statements into individual simplified statements, as if writing a computer software program algorithm or giving instructions to unsophisticated children.<\/span><\/p>\n

            As you can see from this defence approach, it would be impossible to have such deep understanding to any issues when put under pressure to decide quickly without due regard for some detail.<\/span><\/p>\n

              \n
            1. Naivety<\/strong><\/span><\/li>\n<\/ol>\n

              Perpetrators usually don\u2019t act alone but in pairs or with others. They often give the impression of being unaware of the other\u2019s discussions with and undertakings to you. This is nothing but a case of having good cop and bad cop<\/em>.<\/span><\/p>\n

              You would notice this modus operandi as swindlers rarely attend the same meetings to discuss the terms of the deal with you. The aim is to act naively so they could individually cause disruptions to your line of thinking when asking more probing questions. The disruption would be by getting you to start the discussions from scratch when the other discusses the matter with you, citing the need to be kept abreast of discussions held with the other party for a better understanding of the issues preventing the deal from being concluded.<\/span><\/p>\n

              Their naivety bides them time, bringing you closer to the deadline. They\u2019d use the shortened time to apply more pressure on you to decide on your participation. They would then promise to address your concerns shortly after the deal has been struck, and would therefore urge you to commit so progress could be achieved.<\/span><\/p>\n

              Impact<\/em><\/span><\/p>\n

              Naivety capitalises on our natural reaction in the early stages of involvement where several discussions occur without the need for formal written records.<\/span><\/p>\n

              All discussions usually start on the basis of good faith among the parties. The moment the intensity of later interactions require the adoption of formalised approach, swindlers would start acting up, pretending to be confused or unaware of the underlying issues of concern.<\/span><\/p>\n

              The modus operandi is aimed at getting the issues playing in your mind<\/em> in rapid succession, leaving you confused so they could come to your rescue<\/em> by making promises that would ease your concerns.<\/span><\/p>\n

              Your defence<\/em><\/span><\/p>\n

              It\u2019s worth remembering that you were approached because you have something of value they need. The valuable thing they need could be your money or reputation or means through which they could facilitate their dubious dealings.<\/span><\/p>\n

              Be aware and learn fast to identify what it is they are really looking for. Guard it with your life and stop wasting time entertaining their fables<\/em>. If, after the first few encounters you cannot have any of your concerns addressed, it is a clear sign you would be used and would not be treated as an equal. Be decisive at that point and tell them you are unwilling to invest any further time in their efforts until some basics are in place.<\/span><\/p>\n

              If they truly value your opinion and your peace, they would try to meet your needs. Otherwise, they would continue their ignorance hoping you would let go of your demands and carry on with their dealings.<\/span><\/p>\n

              Way Forward \u2013 How to increase your defences<\/span><\/h1>\n

              Issues discussed above are based on actions taken by proponents aimed at bringing you under their control.<\/span><\/p>\n

              But there are other things<\/em> in our lives that fuel<\/em> their advances for our participation in their dubious business deals. These cloud our judgement against spotting their shady deals.<\/span><\/p>\n

              Vulnerabilities we should watch out for, that also empower swindlers and weaken our defences include:<\/span><\/p>\n

              Our Desperation<\/strong><\/span><\/p>\n

              Desperation results from being placed under pressure to close a deal so we could reach targets and earn additional income.<\/span><\/p>\n

              Take lessons from the Filipino Proverb that, \u201ca desperate person will even hold on to a knife edge.<\/em>\u201d Realise when you are in a desperate situation, you are likely to commit desperate acts and the results might be worse.<\/span><\/p>\n

              Our Fear of Missing Out<\/strong><\/span><\/p>\n

              This could result from having many \u201cwhat if<\/em>\u201d thoughts such as, \u201cwhat if the deal is not as bad as I think it is<\/em>\u201d; \u201cwhat if I lack faith<\/em>\u201d; \u201cwhat if I’m old school<\/em>\u201d; \u201cwhat if I’ll anger them by making it appear I\u2019m questioning their integrity<\/em>\u201d.<\/span><\/p>\n

              The \u201claw of love\u201d can help you triumph over difficulties. Letting go of things can sometimes mean winning hearts for good later. You cannot miss what you did not have. Continue your efforts of pursuing honest business dealings and working hard to deliver on your promises.<\/span><\/p>\n

              Our Impatience<\/strong><\/span><\/p>\n

              Sometimes prolonged endurance without much success could lead to impatience. This is the same as giving up after much waiting. It could also result from observing successes achieved by many preferring shortcuts.<\/span><\/p>\n

              You don\u2019t have to join them if can’t beat them<\/em>. The intensity of the pressure could be that you are almost at the brink of success, but have now resorted to tainting<\/em> your course with shady dealings. If pressure is too much to bear, perhaps consider suspending your efforts and seek temporary relief by working with integrous people, or letting others take over<\/em> the reins, or seeking temporary employment.<\/span><\/p>\n

              Our Compromise<\/strong><\/span><\/p>\n

              As compromise requires some concessions to be made to achieve progress, it could be a symptom of desperation or impatience about the impact of the current unacceptable situation.<\/span><\/p>\n

              While it could resolve some problems, ensure that your compromise does not result in your relaxation of principles and values sustaining your success.<\/span><\/p>\n

              Ensure that you clearly explain to the parties your non-negotiable terms for considering deals before discussions intensify. This could save the parties the aggravation of partying ways afterwards.<\/span><\/p>\n

              \u201cBetter is the poor that walketh in his integrity, than he that is perverse in his lips, and is a fool.<\/em>\u201d (Proverbs 19:1<\/a>, King James Version).<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

              Con artists are a menace to society. But their ingenuity is admirable. They are smart and often don\u2019t need to rely on sophisticated schemes to con victims. What makes their devious schemes effective is not so much that their plans are cunning, but mainly because they play on the pride of victims, their fears and […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,15],"tags":[111,72,110,113,112],"class_list":["post-122","post","type-post","status-publish","format-standard","hentry","category-economic-development","category-risk-management","tag-businessdeals","tag-corruption","tag-dodgydeals","tag-scammers","tag-swindlers"],"_links":{"self":[{"href":"https:\/\/blog.exodusintegration.co.za\/index.php?rest_route=\/wp\/v2\/posts\/122","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.exodusintegration.co.za\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.exodusintegration.co.za\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.exodusintegration.co.za\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.exodusintegration.co.za\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=122"}],"version-history":[{"count":1,"href":"https:\/\/blog.exodusintegration.co.za\/index.php?rest_route=\/wp\/v2\/posts\/122\/revisions"}],"predecessor-version":[{"id":123,"href":"https:\/\/blog.exodusintegration.co.za\/index.php?rest_route=\/wp\/v2\/posts\/122\/revisions\/123"}],"wp:attachment":[{"href":"https:\/\/blog.exodusintegration.co.za\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=122"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.exodusintegration.co.za\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=122"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.exodusintegration.co.za\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=122"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}