Cold reading is certainly not the only kind of fake psychic scam. For example, hot reading:
http://en.wikipedia.org/wiki/Hot_readingHowever, a skilled cold reader will in fact get specifics (though they'll also have bad guesses), by making further general guesses based on the information you've already confirmed for them. For example, military service is very common for men in a certain age range, who were drafted to Vietnam. Clothing can be pretty uniform for people who you know to be/can guess to be in a certain demographic. Most people (beyond children) have scars.
If your comment was intended to suggest that some people actually can communicate with dead people: dude, no. It's not true. Your emotions are being preyed on for someone else's profit.