10 People Who Tried to Warn Us About Scams
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VOICE OVER: Tom Aglio
WRITTEN BY: Emily Blair
They tried to sound the alarm, but did anyone listen? Join us as we explore the brave individuals who exposed some of history's most notorious scams and frauds. From financial whistleblowers to skeptical investigators, these people risked their careers and reputations to reveal the truth behind massive deceptions. Our countdown includes Richard Bowen who warned about Citigroup's mortgage fraud, Bethany McLean who questioned Enron's practices, Harry Markopolos who spotted Bernie Madoff's Ponzi scheme years before his arrest, and John Carreyrou who exposed Elizabeth Holmes and Theranos. Which whistleblower do you think made the biggest impact? Let us know in the comments below!
Welcome to WatchMojo, and today we’re discussing people who raised the alarm about the biggest scammers and fraudsters, and whether or not the world listened.
He tried to stop the 2008 housing market crash before it happened. In 2006, as a senior vice president at Citigroup, Richard Bowen discovered serious problems with an alarming 60% of the group’s mortgages. However, his concerns were ignored. As he watched the number of bad mortgages climb to 80%, Bowen knew something drastic needed to be done. He alerted the board of directors, only to be placed on administrative leave and forced to sign a confidentiality agreement. Eventually, the nationwide mortgage fraud practiced by Citibank and other major banks came to light, triggering a devastating recession. While the banks at fault were bailed out by the government, countless individuals suffered greatly from the impact of the recession.
Known to fans by his nickname Pierogi, Scammer Payback is a YouTuber creating content to raise awareness about common scams that have a high chance of impacting us all. Known as “scam baiting,” Pierogi pretends to fall for the scammer’s ruse over the phone while simultaneously hacking into the scammer’s computer networks to expose their information and destroy their files. The result is pure justice being served, and it’s so satisfying. While Scammer Payback can’t single-handedly take down every scammer out there, he is raising awareness in an effective way. His audience is educated on how to recognize and deal with common scams in order to keep themselves and their loved ones safe.
Even if you’ve never heard of Charles Ponzi, his name might clue you in to what he was getting up to in the early 1920s. Ponzi, for whom the Ponzi scheme was named, promised unbelievable returns to investors in his money-making scheme, but there was no money to be made. Ponzi was paying earlier investors with the money coming in from new ones. As his scam grew, the Boston Post grew suspicious, and asked Clarence Barron to look into Ponzi’s business. Barron was head of the Dow Jones and the Wall Street Journal, and he found Ponzi’s business to be completely fraudulent. Barron’s report was instrumental in Ponzi’s subsequent arrest, putting an end to his deception and fraud.
Lancaster was an active member of the skeptic community, focusing on exposing people claiming to have supernatural abilities, such as psychic mediums. Lancaster particularly disagreed with the activities of self-proclaimed psychic Sylvia Browne. Browne often used her “psychic powers” to make shockingly false assertions about missing persons, causing unnecessary grief and confusion for their families. In 2006, Lancaster created a website fact-checking all of Browne’s claims, exposing her fraudulent powers to the early internet. Lancaster was known for his patient and neutral breakdown of these false claims, to the extent that he successfully converted many of Browne’s diehard fans into skeptics.
A pillar of the skeptic community, Randi was a magician and author who investigated and exposed supernatural and paranormal claims. Uri Geller was one individual with such claims, as he allegedly possessed supernatural powers including telekinesis and telepathy. Randi claimed Geller’s powers could be explained with simple magician’s illusions, and challenged Geller to appear on “The Tonight Show.” Randi and Johnny Carson teamed up to ensure Geller couldn’t pull any of his usual tricks, and Geller’s demonstration was a spectacular failure. Despite this, Geller’s career only grew following his appearance on Carson’s show. Apparently, audiences believed true magic wouldn’t work every time, and his failure only lent him more credibility.
Disgraced former doctor Andrew Wakefield has caused immeasurable damage in the medical community with his 1998 study that claimed the MMR vaccine caused autism in children. Brian Deer investigated both Wakefield and his claims, finding that the study was completely fraudulent. No one was able to reproduce the findings Wakefield claimed in his study, and Deer revealed that Wakefield had manipulated evidence to reach his conclusions. Furthermore, Deer discovered that Wakefield had discussed developing an alternative MMR vaccine and intended to sell test kits for autism that he predicted could earn him over $40 million a year. Deer’s reporting might have ended Wakefield’s medical career, but unfortunately his claims still live on amongst anti-vaccine conspiracy theorists.
She rose to infamy for her fraudulent blood-testing company, Theranos. Before the public discovered Holmes’ unbelievable technology really was too good to be true, she had already been named the youngest self-made female billionaire by Forbes. Journalist John Carreyrou began investigating Holmes in 2015 after receiving a tip from a skeptical medical expert. After several months, Carreyrou published an article in The Wall Street Journal that exposed Holmes and Theranos as completely fraudulent. The article destroyed Theranos, and the company quickly began spiraling towards its final end in 2018. Holmes was later found guilty of defrauding investors and was sentenced to 11 years in federal prison and a $452 million fine.
A massive 2001 scandal revealed widespread fraud within America’s dominant energy company, Enron. The company had been overvaluing itself and using shady strategies to conceal an overwhelming amount of debt. The scandal was uncovered in large part by journalist Bethany McLean, who drew attention to Enron’s unbelievably high stock price in her Fortune article “Is Enron Overpriced?” Though McLean did not suggest Enron’s practices were fraudulent, her article raised suspicions that caused Enron executives to panic. Enron began to fall apart from the inside. A famous memo to the CEO from VP of Corporate Development Sherron Watkins[e] read, “I am incredibly nervous that we will implode in a wave of accounting scandals.” By the end of the year, Enron was forced to file for bankruptcy.
You remember Madoff – he managed to run the largest Ponzi scheme in history completely unchecked for decades, resulting in an estimated fraud of $65 billion. The scam was shut down in 2008, but financial fraud investigator Harry Markopolos had been calling out Madoff’s sketchy practices since 1999. Markopolos recognized within minutes of analyzing Madoff’s revenue stream that his business was fraudulent, and spent years trying to expose his scam. Markopolos reported Madoff to the SEC three times in 2000, 2001, and 2005 and was ignored each time. It took Madoff’s sons reporting their father to the FBI to finally put an end to the scam, proving to the world what Markopolos had asserted for years.
For years, the most famous whistleblower in American history was known only by his alias, Deep Throat. Revealed in 2005, Deputy Director of the FBI Mark Felt had been the one meeting with Washington Post journalists Bob Woodward and Carl Bernstein in secret as they conducted an investigation into the Watergate break-in. Felt gave the two journalists key information about the involvement of President Nixon’s Committee to Re-Elect the President, aptly named CREEP. Felt’s information in combination with Woodward and Bernstein’s investigative journalism led to the uncovering of one of the largest and most influential political scandals in American history.
What’s the most shocking scam you’ve ever heard about? Let us know in the comments!
OOR-ree gheller https://youtu.be/gWoZUcWj2k0?si=VHG37RLTN2G-7G-7&t=4
[c]CARRY-roo https://youtu.be/dr7rb_klbt4?si=13QMhGi4V_HA0916&t=20
THARE-UH-noce ("noce" rhymes with "dose") https://youtu.be/rGfaJZAdfNE?si=kXkeou-ZiGCSJBiA&t=283
[d]muh-CLAIN https://youtu.be/vihWt8kQ3eo?si=Oj2qiIvFmCCQ2XCK&t=2
[e]sharon https://youtu.be/22ZUXy3IrGM?si=geRFK5WkXw2xpyjt&t=85
[f]marka-POH-liss https://youtu.be/8pzKyfYI7y4?si=ovqYh14NurdQBINN&t=12
MAY-doff https://youtu.be/ab1NTIlO-FM?si=6OS3t1sKcalXANKn&t=143
Richard Bowen[a]
Warned Us About CitigroupHe tried to stop the 2008 housing market crash before it happened. In 2006, as a senior vice president at Citigroup, Richard Bowen discovered serious problems with an alarming 60% of the group’s mortgages. However, his concerns were ignored. As he watched the number of bad mortgages climb to 80%, Bowen knew something drastic needed to be done. He alerted the board of directors, only to be placed on administrative leave and forced to sign a confidentiality agreement. Eventually, the nationwide mortgage fraud practiced by Citibank and other major banks came to light, triggering a devastating recession. While the banks at fault were bailed out by the government, countless individuals suffered greatly from the impact of the recession.
Scammer Payback [aka Pierogi]
Warned Us About Countless ScamsKnown to fans by his nickname Pierogi, Scammer Payback is a YouTuber creating content to raise awareness about common scams that have a high chance of impacting us all. Known as “scam baiting,” Pierogi pretends to fall for the scammer’s ruse over the phone while simultaneously hacking into the scammer’s computer networks to expose their information and destroy their files. The result is pure justice being served, and it’s so satisfying. While Scammer Payback can’t single-handedly take down every scammer out there, he is raising awareness in an effective way. His audience is educated on how to recognize and deal with common scams in order to keep themselves and their loved ones safe.
Clarence Barron
Warned Bostonians About Charles PonziEven if you’ve never heard of Charles Ponzi, his name might clue you in to what he was getting up to in the early 1920s. Ponzi, for whom the Ponzi scheme was named, promised unbelievable returns to investors in his money-making scheme, but there was no money to be made. Ponzi was paying earlier investors with the money coming in from new ones. As his scam grew, the Boston Post grew suspicious, and asked Clarence Barron to look into Ponzi’s business. Barron was head of the Dow Jones and the Wall Street Journal, and he found Ponzi’s business to be completely fraudulent. Barron’s report was instrumental in Ponzi’s subsequent arrest, putting an end to his deception and fraud.
Robert S. Lancaster
Warned Us About Sylvia BrowneLancaster was an active member of the skeptic community, focusing on exposing people claiming to have supernatural abilities, such as psychic mediums. Lancaster particularly disagreed with the activities of self-proclaimed psychic Sylvia Browne. Browne often used her “psychic powers” to make shockingly false assertions about missing persons, causing unnecessary grief and confusion for their families. In 2006, Lancaster created a website fact-checking all of Browne’s claims, exposing her fraudulent powers to the early internet. Lancaster was known for his patient and neutral breakdown of these false claims, to the extent that he successfully converted many of Browne’s diehard fans into skeptics.
James Randi[b]
Warned Us About Uri GellerA pillar of the skeptic community, Randi was a magician and author who investigated and exposed supernatural and paranormal claims. Uri Geller was one individual with such claims, as he allegedly possessed supernatural powers including telekinesis and telepathy. Randi claimed Geller’s powers could be explained with simple magician’s illusions, and challenged Geller to appear on “The Tonight Show.” Randi and Johnny Carson teamed up to ensure Geller couldn’t pull any of his usual tricks, and Geller’s demonstration was a spectacular failure. Despite this, Geller’s career only grew following his appearance on Carson’s show. Apparently, audiences believed true magic wouldn’t work every time, and his failure only lent him more credibility.
Brian Deer
Exposed Andrew WakefieldDisgraced former doctor Andrew Wakefield has caused immeasurable damage in the medical community with his 1998 study that claimed the MMR vaccine caused autism in children. Brian Deer investigated both Wakefield and his claims, finding that the study was completely fraudulent. No one was able to reproduce the findings Wakefield claimed in his study, and Deer revealed that Wakefield had manipulated evidence to reach his conclusions. Furthermore, Deer discovered that Wakefield had discussed developing an alternative MMR vaccine and intended to sell test kits for autism that he predicted could earn him over $40 million a year. Deer’s reporting might have ended Wakefield’s medical career, but unfortunately his claims still live on amongst anti-vaccine conspiracy theorists.
John Carreyrou[c]
Exposed Elizabeth HolmesShe rose to infamy for her fraudulent blood-testing company, Theranos. Before the public discovered Holmes’ unbelievable technology really was too good to be true, she had already been named the youngest self-made female billionaire by Forbes. Journalist John Carreyrou began investigating Holmes in 2015 after receiving a tip from a skeptical medical expert. After several months, Carreyrou published an article in The Wall Street Journal that exposed Holmes and Theranos as completely fraudulent. The article destroyed Theranos, and the company quickly began spiraling towards its final end in 2018. Holmes was later found guilty of defrauding investors and was sentenced to 11 years in federal prison and a $452 million fine.
Bethany McLean[d]
Warned Us About EnronA massive 2001 scandal revealed widespread fraud within America’s dominant energy company, Enron. The company had been overvaluing itself and using shady strategies to conceal an overwhelming amount of debt. The scandal was uncovered in large part by journalist Bethany McLean, who drew attention to Enron’s unbelievably high stock price in her Fortune article “Is Enron Overpriced?” Though McLean did not suggest Enron’s practices were fraudulent, her article raised suspicions that caused Enron executives to panic. Enron began to fall apart from the inside. A famous memo to the CEO from VP of Corporate Development Sherron Watkins[e] read, “I am incredibly nervous that we will implode in a wave of accounting scandals.” By the end of the year, Enron was forced to file for bankruptcy.
Harry Markopolos[f]
Warned Us About Bernie MadoffYou remember Madoff – he managed to run the largest Ponzi scheme in history completely unchecked for decades, resulting in an estimated fraud of $65 billion. The scam was shut down in 2008, but financial fraud investigator Harry Markopolos had been calling out Madoff’s sketchy practices since 1999. Markopolos recognized within minutes of analyzing Madoff’s revenue stream that his business was fraudulent, and spent years trying to expose his scam. Markopolos reported Madoff to the SEC three times in 2000, 2001, and 2005 and was ignored each time. It took Madoff’s sons reporting their father to the FBI to finally put an end to the scam, proving to the world what Markopolos had asserted for years.
Mark Felt [aka Deep Throat]
Exposed Watergate & CREEPFor years, the most famous whistleblower in American history was known only by his alias, Deep Throat. Revealed in 2005, Deputy Director of the FBI Mark Felt had been the one meeting with Washington Post journalists Bob Woodward and Carl Bernstein in secret as they conducted an investigation into the Watergate break-in. Felt gave the two journalists key information about the involvement of President Nixon’s Committee to Re-Elect the President, aptly named CREEP. Felt’s information in combination with Woodward and Bernstein’s investigative journalism led to the uncovering of one of the largest and most influential political scandals in American history.
What’s the most shocking scam you’ve ever heard about? Let us know in the comments!
[a]BOH-win https://youtu.be/Ac1LAdH4DxQ?si=YTMS5_e_mw3qFERf&t=45
[b]james randy https://youtu.be/YhgDKG5Cpf8?si=PLCsM0jij-O-_8xq&t=5OOR-ree gheller https://youtu.be/gWoZUcWj2k0?si=VHG37RLTN2G-7G-7&t=4
[c]CARRY-roo https://youtu.be/dr7rb_klbt4?si=13QMhGi4V_HA0916&t=20
THARE-UH-noce ("noce" rhymes with "dose") https://youtu.be/rGfaJZAdfNE?si=kXkeou-ZiGCSJBiA&t=283
[d]muh-CLAIN https://youtu.be/vihWt8kQ3eo?si=Oj2qiIvFmCCQ2XCK&t=2
[e]sharon https://youtu.be/22ZUXy3IrGM?si=geRFK5WkXw2xpyjt&t=85
[f]marka-POH-liss https://youtu.be/8pzKyfYI7y4?si=ovqYh14NurdQBINN&t=12
MAY-doff https://youtu.be/ab1NTIlO-FM?si=6OS3t1sKcalXANKn&t=143
