Theres also the scam from a stainless steel rat is born.
What man can code or lock, man can decode and unlock. Without leaving any trace. I will give you some examples. Let us begin with the rounding-ofi’ caper, also called the salami. Here is how it works. Let us say that you have 8,000 bucks in the bank, in a savings account that earns eight percent a year. Your bank compounds your account weekly in order to get your business. Which means at the end of the first week your bank multiplies your balance by . 0015384 percent and adds this sum to your balance. Your balance has increased by 12. 30 bucks. Is that correct? Check it on your calculator. “ I punched away at the sum and came up with the same answer. “Exactly twelve bucks and thirty centimes interest,” I said proudly.
“Wrong,” he said deflatingly. “The interest was 12. 3072, wasn’t it?” “Well, yes, but you can’t add seventy-two-hundredths of a centime to someone’s account, can you?” “Not easily, since financial accounts are kept to two decimal places. Yet it is at this precise moment in the calculations that the bank has a choice. It can round all decimals above . 005 up to the nearest centime, all those below . 0049 down to zero. At the epd of a day’s trading the rounding-ups and rounding-downs will average out very close to zero so the bank will not be out of pocket. Or, and this is the accepted practice, the bank can throw away all decimal places after the first two, thereby making a small but consistent profit. Small on banking terms-but very large as far as an individual is concerned. If the bank’s computer is rigged so that all the rounding-downs are deposited to a single account, why at the end of the day the computer will show the correct balance in the bank’s account and in the client’s accounts. Everyone will be quite pleased.” I was punching like fury into my calculator, then chuckled with glee at the results. “Exactly so. All are pleased – including the holder of that account that now holds the round-downs. For if only a half a centime is whipped from ten-thousand accounts, the profit is a round fifty bucks!” “Exactly. But a large bank will have a hundred times that number of accounts. Which is, as I know from happy experience, a weekly income of five-thousand bucks for whoever sets up this seam.”