Ever wonder why intelligent, rational, and responsible people fall victim to scams?
The answer lies in the psychological vulnerabilities that scammers exploit. In today’s article, I’ll explain in more detail so you can be aware of your own susceptibility, and be better equipped to recognize and resist manipulative tactics. One of the most baffling aspects of fraud is why people fall for scams… DESPITE all the warning signs. Read on to learn how to “see things differently”.
An important distinction is that unlike FRAUD, which happens WITHOUT your knowledge or authorization, SCAMS occur WITH your knowledge and permission, although usually unwittingly.
Human Psychology: The Bedrock of Scams
The answer lies in the psychology of human behavior. Scammers are skilled schemers. They exploit our vulnerabilities and emotions to gain our trust and persuade us to act against our better judgment.
Consider the lottery scam as an example. Imagine you receive an email claiming you’ve won a massive lottery jackpot… even though you don’t remember buying a ticket! The email congratulates you and requests personal information to process your winnings. In this scenario, scammers tap into our desire for wealth and financial security.
By creating a sense of excitement, hope, and urgency, they make us more likely to overlook red flags. Often, we voluntarily hand over sensitive information or make payments, expecting a big financial reward in exchange.
Other psychological tactics include mimicking authority, and providing social proof to make their scams appear more legitimate. These people pose as trusted organizations, use official-looking documents, and often reference other people who claim to have benefited from the same scheme.
Tactics like these play on our natural instincts to trust authority figures, follow the crowd, and seize upon supposedly golden opportunities.
Emotional Traps: Exploiting Compassion and Quick Decisions
Another explanation is the surprise factor scammers often employ. They catch us off guard with unexpected situations or emergencies they insist require your immediate action.
For example, you might receive a call from someone claiming to be from your bank. The “bank representative” states there has been suspicious activity on your account. They urge you to provide required details to rapidly confirm and resolve the issue while remaining on the call. In moments of panic and urgency, our ability to think critically and question the legitimacy of the situation is compromised.
Scammers exploit emotions, particularly empathy and sympathy. They create elaborate stories of personal hardship, medical emergencies, or charitable causes to evoke an emotional response appealing to our compassionate nature. Scammers then manipulate us into making impulsive decisions without carefully considering all the consequences.
This is very important for you to know and understand because falling for scams DOES NOT make you gullible. Don’t think less of yourself because you fell victim to these deceptions. Scammers invest significant time and effort into perfecting their methods and exploiting human weaknesses.
They study human behavior, use sophisticated psychological tactics, and constantly adapt their approaches to stay ahead. Sadly, you are just one of millions victimized.
Emotional Manipulation: The Invisible Threads That Pull Us
Let’s examine five major reasons why scammers’ requests seem reasonable in the moment they occur:
1) Reciprocity Principle: The idea of “You Scratch My Back…” If someone does something for us, we feel obligated to do something for them in return for perceived favors. Scammers prey on people to enforce indebtedness and illicit unwise decisions, making you believe they’re returning a favor done to you. You owe them, right?
2) Social Proof: The idea of “Like Lemmings Off a Cliff…” Also known as herd mentality, research shows people often gauge the safety of actions based on its popularity amongst peers. This reinforces their belief that if other people are doing something, then it must be okay for them to do it, too.
3) Commitment Consistency: The concept of “Little Steps…” People’s sense of personal integrity leads them to be consistent and committed individuals. If they say they’re going to do something, then they commit to it, and refuse to backpedal. This is a particular trait scammers LOVE to exploit.
4) Missing Opportunities: The attitude of “Fear of Missing Out – FOMO…” People are worried about missing out on something that may end up being the “next big thing”, especially in our hyperconnected digital age. So it propels them to leap at opportunities… often without sufficient deliberation.
5) Principle of Likeness: The belief that “They Seem so Nice…” This suggests we tend to like people who seem to be similar to us. Familiarity breeds comfort, so scammers often mirror their victim’s behavior or attitudes. This creates a pseudo-bond that facilitates trust. In turn, we’re much more likely to agree to a request from someone we like.
Additionally, if an offer is available for a “limited time” only, the allure of scarcity further ensnares people, likely driving impulsive decisions.
Double-Edged Sword: Financial and Emotional Betrayal
While reams of data exist regarding the financial impact of scams, not nearly enough attention is paid to the emotional and psychological toll on victims, which is profound.
The exorbitant financial losses only scratch the surface of the emotional and mental toll scams take on victims. A survey by FINRA (Financial Industry Regulatory Authority) in 2015 revealed two-thirds of scam victims suffered from negative emotional repercussions stemming from the fraud. These aftermaths included severe anxiety, sleep disorders, depression, and even PTSD.
It is important to realize how the mental health impact of scams differs from other crimes. According to Stacey Wood, Ph.D. a psychology professor and author of “A Fresh Look at Fraud”, scam victims often grapple with self-blame and feelings of inadequacy in their cognitive abilities.
This is unlike the reactions of theft or burglary victims. These victims may feel violated but not question their decision-making capabilities. Moreover, scam victims often face less sympathy from others, while many place blame on themselves. A significant 47% of respondents in the FINRA survey faulted themselves for being scammed, and 61% believed they were overly trusting.
A common thread, however, is the feeling of intense self-blame and humiliation. Some victims experience such overwhelming shame they contemplate self-harm. Tragically, there are anecdotal reports of victims, especially seniors, taking their own lives after losing significant amounts or falling prey to distressing scams.
Scam Recovery: Comparisons to the Grieving Process
The recovery process is often likened to grieving, especially in cases of romance scams, where the sense of loss is exacerbated by the realization of deceit and “lost love.” Helping scam victims involves empathy, listening without judgment, and providing them with the necessary resources and support to cope with their trauma. Sharing their experiences and seeking support can be a vital step toward healing.
Final Thoughts
CyberAI’s overarching mission as a social enterprise is to protect families and small businesses from the far-reaching effects of falling victim to all types of fraud and scams.
But our concern for people’s financial health and mental wellbeing goes deeper. As part of the fabric of who we are, we are particularly sensitive of the need to protect our most vulnerable community… our seniors.
My next article will be dedicated in its entirety to how we can all, as family, community, and businesses, highlight specific ways to keep our seniors safe from becoming scam victims through education, attention, and understanding their unique needs.
Next Steps
Learn more from Cyber Ollie’s animated companion video on the Psychological Effects of Fraud and Scams at: https://www.youtube.com/watch?v=zryOfxgYEB0&t=188s.
If you find this video helpful, please subscribe and share with friends and family.
Thank you for being a part of this journey. I look forward to connecting with you every week. Together, we will redefine cybersecurity, making it accessible, comprehensive, and universal.
Regards, Jeff
