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By anti-scam, I mean a scam where the victim makes more money by participating in the scam.
This scam works as follows:
The scam is offered by a very respected data scientist (you need to create trust), and indeed, despite being a scam, it works as advertised - even better - for the victim. In short, the victim is happy.
So where's the trick? What's the secret algorithm? It's actually very simple:
A typical lottery (see picture below) returns 50% of the money to the player, on average. So the data scientist should expect to recover 50% of the 30% he invested in the lottery - probably more since he's doing some kind of lottery arbitrage to boost the return for the participants, by only playing the most profitable (least loss) lotteries.
In short, the data scientist (the "scammer") returns (50% * 30% + 60%) = 75% of the money to the player. This is much better than lottery (50%). In addition, the data scientist makes a lot of moderately small winners rather than very few spectacular winners. This creates more happy victims and lower the risk of complaints.
Question: Do you know other scams where the victim truly gets a benefit? Is this really illegal or not? My wife told me it is a scam, but I'm not convinced it's one. Also, you could replace "lottery" by "Wall Street" and create a new anti-scam. Or, instead of playing 30%, he could not play at all, keeping all the money as cash, and redistribute 90% to the participant, rather than an expected 75%.