The Psychology of Fraud, Persuasion and Scam Techniques

1. Fraud is a pervasive, evolving crime with significant emotional and societal costs.

But fraud is not just about the money that is lost. It is also about the anger, sadness, humiliation, stress, disappointment, loss of trust, lack of sleep and loss of self-esteem, etc.

Beyond financial loss. Fraud extends far beyond monetary damage, inflicting deep psychological distress on victims. The emotional toll includes anger, sadness, humiliation, stress, and a profound loss of trust, often leading to long-term suffering and a diminished sense of security. This impact is frequently overlooked by society, which tends to view fraud as a lesser crime.

Constant adaptation. Fraudsters are highly adaptable and inventive, constantly updating their techniques to align with current events and technological advancements. From ancient "miracle cures" and fake lotteries to modern internet scams and sophisticated phishing attacks, the core deceptive patterns persist, merely changing their narrative to appear novel and believable. The internet, in particular, has enabled fraud to flourish due to its ease, anonymity, and low cost for perpetrators.

Societal erosion. The rise of online fraud, coupled with low prosecution rates, suggests an erosion of belief in moral and ethical norms. The distance between victims and perpetrators in the digital age makes fraud seem less personal, potentially tempting otherwise honest individuals. This widespread deception undermines societal trust and can have far-reaching consequences, impacting individuals' willingness to cooperate with authorities and their general empathy towards others.

2. Victim blaming fuels underreporting and hinders effective fraud prevention.

Fraud victims get very little sympathy, as if being scammed somehow implies being responsible for the victimisation.

The stigma of victimhood. A significant barrier to tackling fraud is the pervasive social stigma attached to its victims. Many victims are unfairly typecast as naive or greedy, leading to embarrassment and a reluctance to report the crime to authorities or even confide in friends and family. This self-blame is often unwarranted, as scammers are highly sophisticated and target vulnerabilities, not stupidity.

Cycle of silence. This stigma creates a vicious cycle: victims feel ashamed, underreport the crime, and consequently, the true scale and impact of fraud remain hidden. This lack of data then perpetuates the misconception that fraud is rare or only affects a specific type of person, further marginalizing victims and hindering the development of effective prevention strategies and support services.

Broken system. The current system for reporting and prosecuting fraud is often frustrating and ineffective, further discouraging victims.

• Victims are frequently passed between agencies.
• Cases are seldom investigated, especially for smaller losses.
• Low prosecution rates mean perpetrators often face minimal consequences.
• This systemic failure erodes trust in authorities and leaves victims feeling abandoned and without justice.

3. Fraudsters are sophisticated manipulators who exploit human psychology.

Fraudsters can be just like us, but succumb to certain factors, which contribute to fraud offending. Or maybe they start with small things that do not seem that bad and end up committing more serious frauds.

Diverse motivations. Fraudsters are not a monolithic group; their motivations and methods vary widely. While some may be driven by financial hardship, others are motivated by greed, ego, or even the thrill of the challenge. Some start with small, seemingly innocuous dishonest acts and escalate, while others are highly intelligent, organized criminals who meticulously plan elaborate schemes.

The Fraud Triangle/Diamond. Understanding why people commit fraud often involves considering:

• Perceived pressure: Financial debt, desire for a lavish lifestyle.
• Perceived opportunity: Weak internal controls, ability to override processes.
• Rationalization: Justifying the crime to maintain self-image ("it's not serious," "they deserved it").
• Capability (Fraud Diamond): Personal traits like persuasion, lying effectively, and handling stress, especially for complex frauds.

Never underestimate them. It's a critical mistake to assume all scammers are easily identifiable by poor spelling or obvious tactics. Many invest significant time and effort in crafting convincing narratives, legitimate-looking websites, and impeccable people skills. They leverage psychological principles and social norms to manipulate victims, making them far more dangerous than commonly perceived.

4. Deception and communication are fundamental tools in every scam.

Most frauds use communication to deceive, whether written or verbal.

Intentional manipulation. Communication is the bedrock of most fraud, serving as the primary vehicle for deception. Fraudsters intentionally manipulate messages—whether through art, music, writing, gestures, or actions—to achieve an instrumental purpose: influencing the victim's behavior for personal gain. This involves carefully encoding messages to be easily decoded by the target, often exploiting existing biases or emotional states.

Anatomy of deceptive messages. Deceptive communication typically involves:

• Central deceptive message: The core lie, usually verbal.
• Ancillary message: Verbal or non-verbal cues supporting the central lie's credibility (e.g., a fraudster's composure, sociability, or energy).
• Unintentional behaviors (leakage cues): Non-verbal signals the deceiver tries to suppress, which can betray their true intent. Skilled deceivers minimize these.

Cultural nuances. The perception and acceptability of deception vary across cultures, which fraudsters can exploit. What might be considered morally unacceptable in one society could be viewed as a valuable skill in another. This cultural difference can impact both a fraudster's willingness to deceive and a victim's ability to detect it, especially in cross-border online scams where familiar social cues are absent or misinterpreted.

5. Our inherent cognitive biases and decision-making shortcuts make us vulnerable.

As humans, we have intuitions about information being processed; however, this intuition can often lead to imperfect decisions.

Thinking fast and slow. Our brains operate using two systems:

• System 1 (Fast): Automatic, intuitive, effortless, and often unconscious. It relies on vividness and emotion, making quick decisions but prone to errors in complex situations.
• System 2 (Slow): Controlled, effortful, conscious, and analytical. It allocates attention and concentration, capable of hypothetical reasoning and overriding System 1's impulses, but requires significant cognitive effort.
  Fraudsters exploit System 1 by creating situations that demand quick, emotional responses, bypassing System 2's critical analysis.

Exploiting cognitive biases. Scammers leverage common cognitive biases to cloud judgment:

• Framing effects: Presenting information to accentuate gains (e.g., "80% effective") rather than losses ("20% failure rate") to influence decisions.
• Barnum effect: Using vague, universally applicable statements (like horoscopes) that victims perceive as highly accurate and personal, building false trust.
• Anchoring effect: Relying on initial information (e.g., a high original price) to influence subsequent judgments, making a "reduced" price seem like a better deal.
• Illusion of control: The erroneous belief that we can influence random events or that fraud "won't happen to me," leading to less caution.
• Sunk-cost fallacy: Continuing to invest time, money, or effort into a failing endeavor because of past investments, rather than cutting losses.

ELM of persuasion. The Elaboration Likelihood Model explains how we process messages. If we're unmotivated or unable to process information centrally (focusing on facts), we default to the peripheral route, influenced by superficial cues like a scammer's charm or an offer's attractiveness. Fraudsters aim to keep victims on this peripheral route, where quick, temporary attitude changes are sufficient for compliance.

6. Scammers master persuasion techniques to bypass rational thought.

Fraudsters frequently use deceptive and coercive techniques in order to encourage compliance.

Visceral influence. Scammers deliberately evoke powerful primal drives like fear, greed, or sexual desire. When under such "visceral influence," individuals focus solely on addressing the needs of that state, leading to impulsive actions and lowered risk perception. This is why phishing emails often create panic or excitement, and romance scams exploit emotional longing.

Leveraging social dynamics. Fraudsters skillfully employ social persuasion principles:

• Liking and similarity: Appearing friendly, giving compliments, or fabricating shared backgrounds to build rapport and reduce perceived threat. We are less critical of those we like.
• Credibility and legitimacy: Mimicking genuine organizations with professional-looking correspondence, official seals, or even registered company details to appear trustworthy.
• Social norms: Exploiting our innate desire to be kind, helpful, charitable, or to reciprocate favors, often through fake charity appeals or requests from "friends" in distress.
• Authority: Impersonating figures of authority (police, bank officials, doctors) to inspire trust and obedience, making victims less likely to question requests.
• Social proof: Presenting fake testimonials, reviews, or showing others "benefiting" from an offer to lower a victim's risk perception and encourage conformity.

Creating urgency and commitment. Scammers use tactics to rush decisions and lock in compliance:

• Scarcity and urgency: Limiting quantities or imposing strict deadlines ("one-time offer," "24-hour window") to create a fear of missing out and prevent careful deliberation.
• Commitment and consistency: Asking for small initial commitments (e.g., a simple reply) to make victims more likely to comply with larger, subsequent requests, aligning with our desire for personal consistency.
• Grooming and altercasting: Systematically building intense emotional bonds (romance scams) or projecting a specific identity onto the victim (e.g., "protector" in orphan scams) to gain control and ensure repeated compliance.

7. Individual human factors and life circumstances increase susceptibility.

Ultimately, it is not always easy to pinpoint individual vulnerability to fraud, mostly because it is complex and can comprise many different factors.

Personality traits. Certain individual characteristics can heighten vulnerability:

• Impulsivity and low self-control: Leads to acting without deliberation, making quick, uninformed decisions, and struggling to delay gratification.
• Compliance and obedience: A tendency to go along with others or obey authority figures, even against better judgment, especially if linked to low self-esteem.
• Sensation seeking: A preference for excitement and risk, which can make enticing, high-reward fraudulent offers more appealing.
• Trusting nature: While generally positive, an inherent honesty can lead individuals to assume others are equally honest, making them less vigilant.
• Low need for cognition: A tendency to avoid effortful thinking, leading to reliance on superficial cues rather than critical evaluation of facts.

Life circumstances. External factors can create temporary or ongoing vulnerabilities:

• Emotional distress: Bereavement, divorce, illness, or loneliness can make individuals more susceptible to scams that offer comfort, companionship, or solutions to problems.
• Financial hardship: Desperation for a new job or money can make risky or dubious offers seem more attractive, overriding initial doubts.
• Age: Both younger and older individuals can be vulnerable. Elderly people may experience cognitive decline and social isolation, while younger individuals might be more prone to online risks due to extensive social media use.
• Lack of background knowledge: Insufficient understanding of financial markets, technology, or specific scam types can prevent recognition of red flags.

Beliefs and behaviors. Our ingrained beliefs and habits also play a role:

• "It won't happen to me" mentality: An erroneous belief in one's own intelligence or immunity to scams, leading to reduced caution.
• Just world hypothesis: The belief that bad things only happen to bad people, which can lead to blaming victims and a false sense of security.
• Ignoring warnings: Security fatigue or a tendency to disregard fraud prevention advice, especially if it's complex or frequent.
• Online habits: Frequent social media use, clicking links, and sharing personal information can inadvertently increase exposure and vulnerability to scammers.

8. Vigilance, skepticism, and delaying decisions are powerful defenses.

Delaying decisions is also a good way to avoid scams. Most frauds rely on quick thinking (e.g. today only, one-time offer, etc.) and visceral influence will intensify this.

Cultivating vigilance. Active vigilance is a critical protective factor against fraud. This involves being aware of others' motives and having a readiness to cross-reference information rather than blindly accepting what is presented. Vigilant individuals tend to possess more self-control, are less impulsive, and are less easily influenced by others, making them better at recognizing potentially fraudulent situations.

Embracing healthy skepticism. A healthy dose of skepticism, coupled with general scam knowledge, can significantly reduce vulnerability. Understanding common scam tactics and narratives, even as they evolve, helps individuals identify red flags. This doesn't mean distrusting everyone, but rather applying critical thinking to unsolicited offers, especially those that seem "too good to be true" or evoke strong emotions.

The power of delay. Most frauds are designed to compel immediate action, leveraging urgency and visceral influence to bypass rational thought. Deliberately delaying decisions is a highly effective strategy:

• It allows strong emotions (excitement, fear) to subside, enabling more rational, fact-based decision-making.
• It provides time to research the offer, the sender, or the product, uncovering discrepancies or warnings.
• It creates an opportunity to discuss the situation with trusted friends, family, or professionals, gaining external perspectives.
  Making a personal rule to never make significant decisions under pressure or without a cooling-off period can be immensely protective.

9. The "SCAMS" checklist provides a practical framework for protection.

Therefore, I developed a ‘SCAMS checklist’, a handy technique you can apply each time you are not sure if the correspondence is genuine, and I will explain in detail each of its components.

A structured approach. The "SCAMS" checklist offers a memorable and actionable framework for evaluating any suspicious communication, moving beyond generic advice to a more psychologically informed defense strategy. It encourages a proactive, investigative mindset rather than passive avoidance.

S - Scrutinize the correspondence:

• Double-check facts: Verify names, numbers, emails, and images through independent online searches (e.g., Google, reverse image search).
• Read reviews critically: Seek independent reviews for products or services, looking for inconsistencies or signs of "shill" reviewers.
• Investigate social media: Use email addresses or phone numbers to search social media platforms for clues about the sender's true identity or intentions.
• Be curious by default: Adopt a detective's mindset, questioning everything, even if it seems benign at first glance.

C - Consider scam techniques:

• Identify persuasion tactics: Look for urgency cues, promises of excellent deals/prizes, appeals to authority, attempts to evoke fear or excitement, or vague requests for information.
• Analyze the "why": Understand why the communication is trying to make you act in a certain way. Is it bypassing rational thought?
• Recognize subtle manipulation: Be aware that sophisticated scammers use subtle, well-crafted techniques, not just obvious errors.

A - Assess emotional state:

• Self-reflect: Immediately check your emotions upon receiving the communication. Are you feeling excited, hopeful, scared, anxious, or ashamed?
• Question the urgency: Ask why you feel compelled to act immediately. What would happen if you did nothing?
• Acknowledge doubts: Pay attention to any feelings of unease or "something not being right," even if you can't articulate why. These are often subconscious warnings.
• Recognize external influence: Be aware if the other party is making you feel guilty, anxious, or overly flattered to manipulate your response.

M - Moderate the response:

• Delay action: Resist the urge to respond immediately, especially when strong emotions are present. Time allows for rational thought to return.
• Seek alternative channels: Instead of clicking links in suspicious emails, independently contact the organization (e.g., call your bank directly, log into your account via their official website).
• Create personal rules: Establish boundaries, such as "I will never make a financial decision on the spot" or "I will always consult a trusted person before acting."
• Practice saying "not today": For in-person solicitations, a polite deferral can buy time and deter scammers.

S - Share your experience with others:

• Break the silence: Overcome the shame and embarrassment associated with fraud by talking about your experiences with friends, family, and support networks.
• Report the crime: Even for small losses, reporting fraud contributes to a larger understanding of the problem, helps authorities connect cases, and informs prevention strategies.
• Contribute to collective knowledge: Sharing stories and tactics helps others learn and adapt, strengthening community resilience against evolving scams.
• Challenge victim blaming: Advocate for a shift in societal perception, recognizing fraud victims as targets of crime, not as deserving of their fate.

10. Openly sharing experiences and reporting fraud is crucial for collective defense.

Sharing stories, raising awareness and destroying stigma attached to fraud victimisation is the key.

Breaking the stigma. The pervasive shame and embarrassment associated with fraud victimisation are primary reasons for underreporting. Many victims fear judgment, believing they will be seen as foolish or greedy. This silence allows scammers to operate with impunity and perpetuates a skewed understanding of the problem, hindering effective prevention efforts.

Fueling collective knowledge. Openly discussing fraud experiences, even those that didn't result in financial loss, is vital. Each story adds to a collective intelligence about evolving scam tactics, psychological manipulation, and common vulnerabilities. This shared knowledge empowers individuals and communities to recognize and resist future attempts, as scammers constantly adapt their narratives to current events.

The power of reporting. Despite frustrations with the justice system, reporting fraud is essential for several reasons:

• Data collection: Reporting provides crucial statistics that inform resource allocation for fraud prevention and guide policy development.
• Connecting the dots: Even small losses, when reported, can help authorities identify and prosecute larger, organized fraud networks that intentionally keep individual losses low to avoid detection.
• Justice and accountability: While not always immediate, reporting is the first step towards holding perpetrators accountable and seeking justice for victims.
• Preventing repeat victimization: Engaging with authorities or support services can provide victims with information and strategies to avoid being targeted again.

Transparency from organizations. Businesses and organizations also have a responsibility to be transparent about data breaches and fraud attempts. Hiding such incidents can endanger customers whose personal information may be compromised. A swift, honest, and clear communication strategy, with actionable guidance for customers, is vital for building trust and enabling individuals to protect themselves from subsequent targeted attacks.

Last updated: January 8, 2026