The Greatest Scam in the World

What is best financial scam still in existence?
One of the biggest ongoing financial scams goes like this -

People paying into it are told the following: You pay me $5. I will pick a number from 1 to a million. If you guess the number correctly, I’ll pay you a million dollars. If I tell you that you’ve picked the wrong number, you get nothing and I keep the money. That’s fair, isn’t it?

Ready? Remember you can’t win if you don’t play.

But wait! I’ll give you an even better offer: Pay me $20 and if you win, I’ll give you 5 million dollars! That’s a better deal because, as everyone knows, $5 million is much better than $1 million!

What do you say?

If it makes you feel any better, I will promise to give a little bit of the money you give me to a charity to help little school children.


If you haven’t recognized it yet, it’s the state lottery. At least how we do it here in California.

Of course, the odds are much, much worse than I’ve utilized in my illustration. Unfortunately, the real numbers are so astronomically huge, they don’t fit nicely into my little scenario.

Want even worse news? One of the state lotteries was dying on the proverbial vine because not enough people were buying tickets. What did they do? They lowered the odds of winning and decreased payouts. “Bad move,” you might be tempted to think, “people will buy even fewer tickets.” But, they also increased the top prize and let it grow to hundreds of millions of dollars. It made headlines. It created a national flurry of activity. Everybody had to get their ticket!

Then a funny thing happened which should have been a huge red flag – even with all those extra lottery tickets sold, nobody won the jackpot. Rather than demonstrably proving how unlikely it is to win, they rolled the cash over to the next week and created more interest in an even bigger pot.

This demonstrated that with all those numbers chosen, the odds must be really very bad. But, instead, ticket buyers were relieved nobody won so they could try again for the even larger pot.

And it worked. Lower the odds of winning, pay more for less. Make the dream bigger but less likely to obtain. It saved the lottery game.

Pick your game - scratcher tickets or choose a set of numbers. This scheme is still in existence and it is played every day and every week of every year.
Source: https://www.quora.com/What-is-best-f...l-in-existence

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