There's a Reason Even The Smartest People Fall For Scams

Table of ContentsView AllTable of ContentsThe Psychology of It AllVulnerability FactorsExploitation TechniquesExamplesPrevention and Protection

Table of ContentsView All

View All

Table of Contents

The Psychology of It All

Vulnerability Factors

Exploitation Techniques

Examples

Prevention and Protection

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Conmen and swindlers have always existed (shoutout to Leo DiCaprio playing Frank Abagnale, Jr.) but thanks to technology, it’s never been easier for scammers to find victims. And in 2024, it unfortunately seems that most of us have some experience with getting scammed.

Gallup reports that 15% of people in the US say that they or a household member has been the victim of a scam in the past year.While older adults are often the target of fraudsters, Experian resorts that adults aged 35 to 44 are most likely to fall for scams and that those aged 18 to 24 lose the most money.

Online fraud, in particular, is an increasingly pressing problem that leads to an estimated 2.7 billion dollars in economic loss each year. Not only does it harm individual financial well-being, but it can also seriously affect people’s mental well-being.

At a GlanceScams are a major problem. Phone scams, email phishing, bogus job opportunities, and emergency scams are some of the most common, and the use of AI technology is a growing concern. Research on who is susceptible is mixed. While older adults are often believed to be more likely to fall for scams, evidence suggests that younger groups are more likely to be deceived and tend to lose more money. Knowing the factors that play a role, being aware of common scam tactics, and using caution are your best line of defense.

At a Glance

Scams are a major problem. Phone scams, email phishing, bogus job opportunities, and emergency scams are some of the most common, and the use of AI technology is a growing concern. Research on who is susceptible is mixed. While older adults are often believed to be more likely to fall for scams, evidence suggests that younger groups are more likely to be deceived and tend to lose more money. Knowing the factors that play a role, being aware of common scam tactics, and using caution are your best line of defense.

9 Common Scams and The Tactics to Watch Out For

There are a variety of psychological factors that scammers exploit. One model suggests people are more vulnerable to scams due to situational variables  (like time or social pressure) as well as cognitive, emotional, and personality factors. For example, people who tend to bemore agreeablemay be more likely to comply with scams.

Trust and Credibility

“Scammers often impersonate trusted authorities or entities to establish credibility. They maymirrorlanguage and communication styles, or even impersonate friends and family to foster a sense of familiarity and trust,” explains Dr. Robert Cuyler, PhD, the chief clinical officer atFreespira.  “Once trust is gained, victims are more likely to comply with instructions without scrutiny.”

Scammers often learn more about their victims and target their messaging to make themselves seem more trustworthy and authoritative. The phone calls, emails, and texts you get from people posing as your bank or a trusted website are good examples. They might go to great lengths to appear legit.

The email or message looks official, so you click the link and unknowingly hand over information they can then use to access your accounts, open new accounts in your name, or take over your social media profiles.

Emotional Manipulation

Fear is a major factor that makes people more vulnerable to scams, saysDr. Mary Poffenroth, PhD, a biopsychologist, faculty member at San Jose State University, and author of “Brave New You.” Our brains are wired to react quickly to perceived dangers. This can protect us when we are at risk but can also lead us to ignore our more logical thought processes.

Using scenarios that set off fear reactions—such as the threat of legal action, financial loss, or missed opportunity—scammers profit from this. Our capacity for critical thinking and logical decision-making suffers under a state of anxiety.—DR. MARY POFENNROTH, PHD

Using scenarios that set off fear reactions—such as the threat of legal action, financial loss, or missed opportunity—scammers profit from this. Our capacity for critical thinking and logical decision-making suffers under a state of anxiety.

—DR. MARY POFENNROTH, PHD

Fear, urgency, danger, and other strong emotions often make us jump in without thinking things through first. A scammer might tell you to act quickly because something bad will happen. Or they might make you think you’ll miss a once-in-a-lifetime opportunity if you don’t act now.

When this happens, we’re more likely to fall for the scam without evaluating the situation rationally.

Cognitive Biases and Heuristics

Cognitive biasesand heuristics are also key factors in falling for scams. These mental tendencies lead us to think in biased, irrational ways, which scammers then exploit for their own selfish gains.

Biases that can play a role include:

Heuristics, or the mental shortcuts we use to make everyday decisions, also play a part. These handy cognitive rules of thumb are efficient; they speed up decision-making and are often accurate. However, they also make us susceptible to mistakes and bad choices.

Social Influence and Conformity

Factors that can affect our susceptibility include:

According to Dr. Poffenroth,reciprocityis one of the major psychological reasons people fall for scams. By making people feel indebted, even in subtle, unspoken ways, scammers create a psychological debt that they use to control their victims.“The victim finds it psychologically more difficult to refuse later demands since the first ‘favor’ functions as a foot-in-the-door tactic,” Poffenroth explains.

There are several factors that can make you more vulnerable to scams.

The mistakes others make might seem obvious in hindsight but are a lot more ambiguous in real time. Plus, our belief in our invulnerability often makes us underestimate the likelihood of becoming victims ourselves.

Some other factors that can leave you more open to being scammed include:

Financial Difficulties and Desperation

You’re more likely to fall for a scam when you’re in financial trouble. If the scam promises a solution to eliminate your money woes, it can muddle your thinking.

Desire for Quick Financial Gains

Sometimes, the promise of a quick and easy buck is all it takes to dupe someone into falling for a scam. The promised outcome is so good, so tempting, that you ignore all the red flags that would normally raise your suspicions. It’s important to keep in mind that if something seems too good to be true, it probably is.

Depression, Loneliness, and Social Isolation

Fraudsters exploit this need for human connection to establish fake relationships and eventually defraud their victims.—DR. ROBERT CUYLER, PHD

Fraudsters exploit this need for human connection to establish fake relationships and eventually defraud their victims.

—DR. ROBERT CUYLER, PHD

Telemarketing scams can be particularly effective on lonely, isolated people. Phone scammers know lonely adults are more eager to engage in these conversations to fulfill their communication and interaction needs.That leaves them more open to the deceptive messages these grifters use to defraud their victims.

Factors likestressand anxiety can also contribute to a susceptibility to scams. Anxious people experience disruptions in areas of the brain associated with decision-making.Being under a lot of stress can also impair decision-making abilities.

Lack of Knowledge and Awareness

Poor familiarity with common scam strategies and low experience with technology are also linked to an increased risk of being defrauded. Some groups, particularly older adults, are less familiar with technology in general, which can make them a target for online scammers.

Identifying authentic emails, websites, and links is sometimes tough, particularly as scammers become increasingly adept at disguising their tactics. So you can imagine how hard it would be for a digital novice. This lack of knowledge and awareness leaves people more prone to trusting imposters.

Dr. Cuyler also notes that people who think they’re too smart to fall for scams may also be more susceptible. “Those who believe themselves to be too savvy to fall for scams may let their guard down, making them vulnerable to missing warning signs or taking unnecessary risks,” he says.

Older adults, in particular, are frequently the target of telemarketing, internet, and other scams. One study found that susceptibility to financial fraud is associated with older age, lower cognitive functioning, lower literacy, and decreased psychological well-being.

Vulnerability factors certainly have an effect on whether we fall for scams, but the nature of the scam itself can also impact the likelihood of victimization. Swindlers are rarely as obvious as the infamous Nigerian prince promising large sums of money in exchange for your help. Many scammers today use sophisticated methods and rely on highly effective psychological tactics to exploit their targets.

Impersonation and Deception

Scammers also use impersonation and deception to con people into giving them money, information, or other valuables. Chances are good that you’ve probably encountered this type of scam online—an email scammer posing as your bank, fake Facebook accounts impersonating people you know, or callers pretending to be IRS agents or other government officials.

By impersonating someone you trust or a figure of authority, scammers are able to increase the likelihood that unsuspecting folks willcomply with their requests.

Fear and Urgency Tactics

Fear and urgency can be powerful psychological tools that scammers use to take advantage of others. They might call posing as an authority (like your bank or credit card company), and claim that your account has been compromised or that you have an outstanding balance.

Because they are able to trigger feelings of fear (someone is stealing your money!) and urgency (you need to act fast to stop this from happening!), you might hand over crucial information about yourself without thinking things through.

Social Engineering and Manipulation

Social engineering refers to using manipulation tactics to get people to give up private details about themselves. It essentially involves using psychological tactics to exploit yourvulnerabilities, like your desire to help others or need to fit in with the group.

For example, a scammer might call pretending to be from your internet service provider’s tech support department. They then tell you they need to access your computer so they can fix a security issue. Because you trust your internet provider and fear leaving yourself vulnerable to hackers, you might turn over passwords and other information without checking to see if they really are who they claim to be.

Phishing often relies on social engineering strategies. These schemes use fake emails or text messages that look real.

Because they seem legit, you might click the link and enter information (like usernames, passwords, phone numbers, or other confidential information).

Use of Technology and Digital Platforms

Technology and online platforms have given scammers new tools and methods for exploiting their victims. Social media, dating apps, online marketplaces, and even children’s gaming platforms are rife with all types of fraud.

But online marketplaces aren’t the only target of scammers. Scammers can set up fake websites, clone social media accounts, and even use different technologies to hide their identity and location.

Examples of Scams We Fall For

It seems most people have at least one scam story–something they or someone they know experienced. According to Experian, the median loss for young adults between the ages of 18 and 24 is around $155 per scam.

It can be a stressful experience, but some scams have far more serious, lasting, and devastating effects. The father of my childhood best friend, for example, lost the bulk of his life savings to a Ponzi scheme.

Hearing the stories of scam victims can be heartbreaking, but it can also be an eye-opener–and a reminder that it can happen to anyone.

Examples of scams you should watch for include:

Scams leave both financial and emotional wounds. After falling victim, you might be left feelingashamed, embarrassed, guilty, and isolated. In fact, many people refuse to acknowledge that they’ve been swindled.

That can make reaching out for help or reporting what happened harder. In some cases, the effects can be devastating, leading to financial losses that are extremely difficult to recover from, particularly for older adults who have left the workforce and are living on a fixed income.

Scam Stories

It’s important to be aware of the different types of scams out there to protect yourself. Remember, falling for a scam doesn’t mean you’re foolish! It just means that scammers are skilled deceivers. Anyone can fall victim to a scam.

Education and Awareness Programs

Scammers are becoming increasingly sophisticated and more likely to use AI, other digital tools, and psychological strategies to manipulate you. Being aware of the types of scams taking place, how they work, and where you might encounter them is a good way to stay alert.

“Fraud and scams can target anyone, and consumer education and awareness are some of the best defenses,” says Darius Kingsley, the head of consumer banking practices atChase Bank.

Practice Mindfulness

Poffenroth says thatmindfulnesscan be an effective strategy for helping you live more in the present and become more aware of your ideas and emotions.

“Developing this ability helps people to become more sensitive to their emotional responses in perhaps dangerous circumstances. This higher self-awareness enables a pause between stimulus and response, freeing more room for more logical decisions.”

She also points to research showing that regular mindfulness practice can help strengthen the neural circuits that are linked to emotional and cognitive control.

By learning to observe our thoughts and feelings without immediately acting on them, we can make more considered choices and better protect ourselves from fraudulent schemes.—DR. MARY POFFENROTH, PHD

By learning to observe our thoughts and feelings without immediately acting on them, we can make more considered choices and better protect ourselves from fraudulent schemes.

—DR. MARY POFFENROTH, PHD

Recognize Red Flags and Warning Signs

Keep your eye out for things that don’t seem right. Make it a policy not to click suspicious links or respond to offers that seem too good to be true. Even if a link, email, or phone call seems legit, maintain some healthy skepticism. When in doubt, call the source directly and ask if they are really trying to contact you.

Strong Security Habits

Some general safety tips Kingsley recommends include:Setting up fraud and transaction alerts at your bankLimiting your social media connections to people you knowNever answering questions about your personal financesNever giving anyone access to your phone or computerVerifying the legitimacy of merchandise before purchasingIgnoring and blocking calls or messages from numbers you don’t recognize

Some general safety tips Kingsley recommends include:

Reporting Scams and Seeking Help

So, what should you do if you get scammed? The Federal Trade Commission suggests taking immediate action to protect yourself, including calling your credit card company, bank, gift card issuer, or wire transfer company to inform them of the fraudulent charge and request your money back.

“Remember that financial scams can, and do, happen to anyone. Don’t feel embarrassed. Share your experience with friends and family and ask for help,” Kingsley suggests. “If you feel you’ve been scammed, contact your bank to verify recent transactions to ensure there is no fraudulent activity on your account.”

If you’ve shared personal information with a potential scammer, change your passwords and sign up for an identity protection service to alert you of potential problems. Credit monitoring services, such as the freeChase Credit Journeytool, can send you alerts if your personal information is exposed in a data breach.

Report scams, whether you’ve experienced them or witnessed them happen to someone else, to the FTC atReportFraud.ftc.gov.

Keep in Mind

The truth is that it can be really hard to detect scams, so give yourself a break if you’ve fallen victim to one. It happens to almost all of us at some point. Being skeptical, learning about scammers' tactics, and practicing good safety strategies can help minimize your risk.

If you have been victimized, document what happened, contact your financial institution immediately to stop or reverse any charges, change your passwords, and report the crime to the FTC and local law enforcement.

Online Scams Can Have Serious Mental Fallout. Here’s How to Deal (And Heal!)

13 Sources

Verywell Mind uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read oureditorial processto learn more about how we fact-check and keep our content accurate, reliable, and trustworthy.

Gallup.Scams: Relatively common and anxiety-inducing for Americans.

Experian.Who gets scammed the most?

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James BD, Boyle PA, Bennett DA.Correlates of susceptibility to scams in older adults without dementia.J Elder Abuse Negl. 2014;26(2):107-122. doi:10.1080/08946566.2013.821809

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Federal Trade Commission.What to do if you were scammed.

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