Let’s be honest, being scammed is not something anyone is proud of. In fact, less than 40% of victims report these scams at all. Much less. The emotional toll that these scams have on their victims can be irreversible, and some victims suffer from long lasting PTSD. It can rip families apart and even lead to suicide. There is a tremendous amount of shame and guilt by victims thinking “How could I be so stupid, so naïve, why did I ignore the red flags? I should have known better”. The reality is that scammers can be very convincing. They train for this and use psychology against us. They target anyone who will click the link on a phishing email or respond to a text. And once someone takes the bait, they use psychological tactics ranging from fear to delight (“you’ve won this amazing cruise for free, just give me all of your personal information”). I came across this great website with video resources for scam victims, but I feel like more needs to be done.
The perception is that victims of such scams are less tech savvy, more vulnerable, or elderly, but the reality is, it can happen to anyone. Research by Javelin Strategy & Research suggests that all age groups are equally likely to fall for a scam. They can catch you on an “off” day and get through.
Anyone can become a victim, and we need to do more to give anyone who fell victim to a scam the confidence to speak up and get help. According to a report published by AARP, while most (85%) Americans believe fraud can happen to anyone, 53% identify victims as culpable and blameworthy, based on a survey of 1,000 U.S. adults. The impact is clear – people don’t seek help, they don’t think they will get their money back, and they think it is just their fault. We need to change this paradigm because it is not anyone’s fault. Talking about it more will get victims to speak up, law enforcement to handle more cases and regulation to drive more attention and solutions to these issues.
About three years ago, I received a call on my mobile phone from a number I didn’t recognize. I answered and heard an automated message from the IRS about a problem with my account. It instructed me to press 1 for a callback. I did, and that began my journey down the psychological rabbit hole of a scam.
As a cybersecurity and fraud protection specialist, I knew it was a scam call, but I wanted to explore their tactics. When they asked for personal information to verify my account, I provided fake data, and, unsurprisingly, they "discovered" a problem with my account. It quickly escalated from "someone made a suspicious transaction" to accusations of money laundering, drug smuggling, and even an FBI warrant under the false identity I had given. They claimed the FBI was already on their way to my home in Texas (where I don’t actually live). Despite knowing it was fake, I felt my heartbeat rise and a wave of stress, anxiety, and fear. I hung up, worried they might have my phone number now. Although I wasn’t truly scammed, I experienced a fraction of the emotional impact, and it was terrifying.
It’s All About the Money – IT Scams, Romance Scams, Impersonation Scams
Online financial scams rely on social engineering—a form of deception that manipulates individuals into giving away personal information or money. In 2021, the FBI received 847,376 complaints of online scams, a 7% increase from 2020, with reported losses exceeding $6.9 billion. Reported is key because many scams go unreported. Some common scams include:
- Impersonation Scams: Scammers pose as trusted officials, like bank customer service reps, convincing you to transfer money to a "safe" account.
- Investment Scams: These scammers lure you into investing in fake opportunities, including stocks, bonds, real estate, and increasingly, crypto, which has seen a 700% rise in scams year-over-year.
- Romance Scams: Scammers create fake identities online to build romantic relationships and then manipulate victims for money.
- IT Helpdesk Scams: These involve scammers persuading victims to install remote access tools, giving them control of your device to steal information and access bank accounts.
- Business Compromise Scams: Responsible for $2.4B of losses in 2021, these scams trick employees into transferring money through fraudulent business emails or messages. There are two types of scams – 1. Business Email Compromise (BEC) – criminals send an email message that appears to come from a known source making a “legitimate” request, like a company CEO asks to urgently transfer money to a “vendor”, a “vendor” sends an email with new bank account details for the next payment. 2. Business Compromise – these scams happen typically outside the context of the business email or messaging, over SMS, personal mail or WhatsApp. A scammer will target individuals and pose as the CEO or a sales manager, asking to buy gift cards for a customer, or sending service notifications that require immediate action, such as the case of the Twilio – Authy breach and other companies.
And the list goes on: Amazon, PayPal, shipping scams—if you have a smartphone, you know the types.
It’s Not Just About Money—The Emotional Toll is Huge
Let’s be honest, being scammed is not something anyone is proud of. In fact, less than 40% of victims report these scams at all. Much less. The emotional toll that these scams have on their victims can be irreversible, and some victims suffer from long lasting PTSD. It can rip families apart and even lead to suicide. There is a tremendous amount of shame and guilt by victims thinking “How could I be so stupid, so naïve, why did I ignore the red flags? I should have known better”. The reality is that scammers can be very convincing. They train for this and use psychology against us. They target anyone who will click the link on a phishing email or respond to a text. And once someone takes the bait, they use psychological tactics ranging from fear to delight (“you’ve won this amazing cruise for free, just give me all of your personal information”). I came across this great website with video resources for scam victims, but I feel like more needs to be done.
The perception is that victims of such scams are less tech savvy, more vulnerable, or elderly, but the reality is, it can happen to anyone. Research by Javelin Strategy & Research suggests that all age groups are equally likely to fall for a scam. They can catch you on an “off” day and get through.
Anyone can become a victim, and we need to do more to give anyone who fell victim to a scam the confidence to speak up and get help. According to a report published by AARP, while most (85%) Americans believe fraud can happen to anyone, 53% identify victims as culpable and blameworthy, based on a survey of 1,000 U.S. adults. The impact is clear – people don’t seek help, they don’t think they will get their money back, and they think it is just their fault. We need to change this paradigm because it is not anyone’s fault. Talking about it more will get victims to speak up, law enforcement to handle more cases and regulation to drive more attention and solutions to these issues.
