Capital Allocators – Inside the Institutional Investment Industry WTT - You Won't Detect the Next Fraud
Jan 14, 2023
Explore the intricate world of investment fraud detection and why it's often so elusive. Discover how fraudsters expertly manipulate trust and avoid scrutiny. Through high-profile case studies like Bernie Madoff and Sam Bankman-Fried, gain insight into practical strategies that can help protect you from falling victim. This discussion sheds light on the psychological and systemic factors that allow fraud to flourish.
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Fraudster Focus
- Fraudsters dedicate all their efforts to deception, making detection difficult.
- Investors allocate only a small portion of their resources to fraud detection.
Madoff's Deception
- Bernie Madoff didn't execute actual trades.
- He dedicated himself entirely to maintaining the facade of his Ponzi scheme.
FTX Fraud
- SBF's FTX fraud involved misusing customer funds, which wasn't initially foreseen by investors.
- The investment thesis was sound until the fraud occurred.