Why People Fall for Scams: Insights from a Psychologist
In a recent report by the National Scam Response Centre (NSRC), it was revealed that online scams in Malaysia have resulted in losses exceeding RM1 billion over the past year alone. These staggering figures have prompted a psychologist to shed light on the reasons why people often fall victim to scams.
Industrial psychologist Victor Goh highlights a psychological phenomenon known as the self-serving bias as a significant factor contributing to individuals’ susceptibility to scams. This bias leads people to believe that they are immune to such threats, creating a false sense of security. Goh explains that many individuals assume scams can happen to others, but not to themselves, resulting in a lack of awareness and preparedness.
Goh emphasizes that initiatives like awareness programs often fail to deter potential victims due to this self-serving bias. People tend to dismiss the possibility of becoming victims, thinking, It can never happen to me or It’s so obvious. However, Goh warns that everyone is equally at risk if they are not cautious.
According to Goh, factors like greed and the concept of sunk costs also contribute to individuals falling for scams that seem too good to be true. Scammers exploit individuals’ desire for financial gain, making it challenging for rational thought to override the allure of quick wealth. Goh explains that scammers manipulate victims into investing small amounts initially, convincing them to invest more based on the idea of recouping their initial investment.
Vulnerable groups, such as the elderly, less informed individuals, and those in urgent need of money, are often the primary targets for scammers. Goh mentions that scammers utilize psychological tricks, rather than relying solely on technology. They establish a sense of empathy by using phrases like I am like you or I was just like you, making individuals believe they can provide assistance.
Goh suggests that educating individuals about the psychological tactics used by scammers, such as the foot-in-the-door tactic, sunk costs, similarity, and authority, can help identify scams before they progress to the stage of requesting personal information like one-time passwords. By raising awareness of these techniques, individuals can better protect themselves against such fraudulent activities.
Criminologist Shankar Durairaja adds that scammers continuously evolve their tactics, keeping up with the latest trends and using specific skills and artificial intelligence to create various scenarios. This constant innovation makes it challenging for law enforcement to track down scammers effectively.
In conclusion, the alarming rise in online scams and financial losses necessitates a greater understanding of why people fall prey to these schemes. Industrial psychologist Victor Goh’s insights shed light on the self-serving bias and psychological tricks employed by scammers. By raising awareness and educating individuals about these tactics, it is hoped that people can better protect themselves against such scams and reduce the financial losses incurred.
