It used to be easier to spot the statistical model scams
Time was, you could only make teeny tiny models that fit within the available RAM, not these humungous beasts. Which meant that, when let into the big wide world, dealing outside of the training set the cracks would show up much faster and be more obvious to everyone. Although they were a lot quicker to train (at the easy end of exponential data crunching versus linear Moore's Law) so you caould chuck 'em out faster.
Go back to the old automated-trading scams (not that anyone ever actually did this, no, nope, on my life guv): train up (teeny) models on a stock market feed. Make a fair few of these, with random variations (number of nodes, different data subsets) so that they don't all end up identical but they all re-create the historical data pretty well. Take out a great big ad stating how your amazing system managed to track the market so far (well, duh) and promise Great Riches to anyone buying it to "predict" how the markets will act tomorrow. You can even keep adding to the ad copy "certified satisfied customer reports" from purchasers who "struck gold this very week"!
Of course, everyone got a "customised model", most of the predictions were effectively random (and it has been shown more than once that random stock picking is at least as good as most pundits and traders...) and only the "big wins" are ever glorified in the press (who can be trusted to take on the burden of bolstering your ad copy). After a short time, the models are so far out of their depth that anyone can see that they are generating gibberish and the customers quietly feed their copies into the shredder (one of the great advantages of using floppy discs and CDs when buying software, you at least physical revenge). You've quietly folded your company (or, better yet, flogged the whole thing to an even wider boy - sorry, I mean "a respected trading company") and trotted back to Peckham.
But now it has all gone horribly wrong.
- the costs of the models are obscene, with the obvious repercussions (like face-saving: when you call out the quality of the goods, Rodders will look nervous and Del will give you the gab, but the boys playing with this much dosh have got nice suits with strange bulges; metaphorically, of course).
- the cracks start off tiny, compared to the size of the model and the amount of stuff it can regurgitate, so they are easily brushed off (that 10-line routine forgot to declare "loopCount", you fixed it without even thinking, almost out of habit)
- there are only a few models which everyone is playing with, so as the cracks propagate no-one will be spared from falling into the Underworld of Nightmares.
- the more people get themselves invested into something big and shiny, the less able they are to give it up. And they can't even get catharsis from the shredder (although putting one end of the Ethernet cable in might be fun, it'll still wreak havoc on anyone in the vicinity).