Kaiser Fung on Small Numbers and Scams
Statisticians hate small numbers (samples); now there is another reason to hate small numbers. In one word, scams.
The FTC has shut down a scam in which the crooks have sneaked through 1.35 million fraudulent credit-card charges, each valued at $0.25 to $9 -- after letting it run for four years. What's shocking is that less than 5% of the victims (78,724) noticed and reported the charges. So, instead of stealing $1 million from one person, steal $1 from a million.