Canadian Cross Border Scam
"the defendants then mailed invoices to these businesses and organizations, typically billing them between $249 and $459 for the directory and the listing. After receiving these invoices, the FTC alleged, many individuals realized that no one from their organization ordered a directory listing. In many instances, according to the complaint, when organizations refused to pay the invoices, they were referred to the defendants' in-house collection company, which harassed them with frequent telephone calls, dunning notices, and threats to initiate legal action and damage credit ratings."
Why does this type of harrassment work? Why will people pay for a listing or directory that they didn't order?
The FTC has a web page about how to detect and prevent this type of business opportunities fraud, but it misses the basis point. The major psychological trick here is reciprocity: the scammer has sent you something, and in turn, you feel an obligation. You may not even acknowledge the tug of reciprocity, but simply act upon its pull. The offer to "discount" the initial invoice is very effective - it plays upon what psychologist call the contrast principle, the discounted invoice looks smaller than the large invoice and is accepted, even if it would have been rejected had it been offered first.
