The Biggest Scam In The History Of - Alternative View

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The Biggest Scam In The History Of - Alternative View
The Biggest Scam In The History Of - Alternative View

Video: The Biggest Scam In The History Of - Alternative View

Video: The Biggest Scam In The History Of - Alternative View
Video: The Biggest Scam In The History Of Mankind 2024, May
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Mythical land

In October 1822, Gregor McGregor, a native of Scotland, made a startling statement. According to him, he was not only the son of a local banker, but also the "prince" of the land of Poyis, which is located along the Black River in Honduras.

Slightly larger than Wales, the country was so fertile that it could produce three maize crops a year. The water in this country was so clean and refreshing that it could quench any thirst. And as if that weren't enough, gold could be found in the riverbed. The trees were full of fruit and the forest was teeming with animals. This picture of exotic, heavenly new life abroad contrasted with Scotland's rainy climate and rocky soil.

"Prince" McGregor argued that the only thing Poyais lacked was investors and settlers who were willing to develop and use natural resources. At the time, investments in Central and South America were very popular and Poyais proved to be a particularly attractive proposition.

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After all, Scotland had no colonies of its own. Therefore, the new earth was perceived as a corner of the world that she could use.

But the truth is that McGregor was a master salesman - and given the psychological underpinnings of this scam, it's no surprise that so many people have fallen prey to deception.

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Human motivation aspects

Fraudsters have long recognized that beliefs must be based on two specific aspects of human motivation: what will get people to do something, and the inertia that keeps people going. In 2003, two social psychologists - Eric Knowles of the University of Arkansas and Jay Lynn of Weidener University - formed the idea, calling it "two types of persuasion tactics."

The first type, alpha, was much more common. This is the increased attractiveness of something. The second type is omega - resistance reduction. In the first case, the swindler does his best to show his proposal in a more attractive light. He tells the backstory: why this is such a great opportunity, why you are the perfect fit to do it, who gets how much, and so on. In the second case, the proposal must be made so that others do not think about why they should do something at all and what they can lose.

Approach-avoidance persuasion model

Scientists have called this model of persuasion the “avoidance approach”. You can convince a person of something if you make him want to do something and hide the reasons why you should not want to do it. According to Columbia University psychologist Tory Higgins, people tend to fall under the influence of one motivational line. Some people think about possible returns, while others focus on avoiding loss and mistakes. An approach that combines alpha and omega influences both types of thinking, transforming belief into a universal appeal. MacGregor used this powerful combination.

How McGregor used it

He published interviews in national newspapers, for example, advertising the benefits that investors or settlers in Poyais could receive. He emphasized the courage and fortitude that are necessary in order to decide on this step. But at the same time, McGregor said that to make such a decision, you need to be not just smart, but a real man. He noted that the Scottish Highlanders are known for their endurance and adventurous spirit. And Poyais should be a test, a challenge and a gift for them. For those who needed proof, he provided a book on the merits of a small island country, written by Thomas Strangeweiss (in fact, MacGregor himself).

Its brochures lured the public with masterful promises, opportunities, and references to limited space, making it seem impossible to ignore such a proposal. This powerful combination of alpha and omega persuasion tactics may explain the appeal of McGregor's idea, but he refined his approach and included other tactics to increase the appeal of the idea.

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Relationship regulation principles

Psychologist Robert Cialdini, one of the leading experts on persuasion, argues that there are six principles that govern the most persuasive relationships:

- reciprocity (I to you, you to me);

- sequence (I am doing the same today as I did yesterday);

- social check (do it, I will believe you);

- friendship or sympathy;

- deficit (act quickly, there is very little left to think for a long time);

- authority (I know what I'm talking about).

What McGregor used

Let's look at how many of these principles McGregor used:

1. Reciprocity: you invest with me and I give you opportunity in life. However, hardly anyone can offer anything comparable.

2. Social Test: You will become the best of Scots, become the most respected person, pioneer and role model.

3. Scarcity: we need to act now, because the island is small and everyone will not get land. If the Scots cannot help Poyais, someone else will, but now the nation has a chance to achieve colonial greatness.

4. Authority: Dr. Strangeweiss certainly knows what he's talking about. If you don't trust me, then at least trust him. Although why don't you trust me, after all, I get published in the best newspapers of our time.

The rogue's benefit and the fate of the colonialists

The tactic worked exactly as expected. She was very successful. McGregor originally earned £ 200,000 in cash. In addition, he sold bonds to investors, the value of which in today's equivalent is 3.6 billion pounds. But he was also paid for the seven ships of the most impatient settlers to sail across the Atlantic Ocean. From September 1822 to January 1823, the first two ships sailed to the mythical land, taking 250 settlers with them. Their spirits were upbeat - McGregor was unmatched in his ability to sell. But when they arrived two months later, they found that the reality was far from that described in McGregor's attractive brochures. There were not even ports or buildings. In fact, it was a wasteland.

The belt never existed. He was a figment of McGregor's imagination. He sent investors and colonialists to the desolate part of Honduras - and soon even the hardy Scots began to die. The rest of the settlers (only a third were able to survive) were rescued by a passing ship and taken to Belize. The British fleet stopped the other five ships before they reached their destination. McGregor fled to France.

New attempt

Even if he repented, he chose a very strange way to show it: shortly after arriving in France, he again began to look for investors and colonialists who would want to go to Poyalis. His initial investment may have evaporated, but the skill and art of persuasion remained the same. Within months, he recruited a new group of colonialists and investors ready to hit the road. However, France proved to be more stringent in checking documents than England. When the government saw a flood of requests to visit a country that no one had heard of before, a commission was formed to investigate the case. McGregor was thrown into prison. After a quick return to Edinburgh, he was forced to flee once more, fearing the wrath of the bondholders who acted as investors. MacGregor died in 1845 in Caracas. To this day, the land he passed off as Poyalis remains a poor and undeveloped desert.