Scammers have an arsenal of mind games they use to trick their targets into giving over their personal information, hard-earned cash, or both. To help you combat this, we’re breaking down the most common tricks of the trade and how to rebuff each. Above all, remember that you’re far less likely to get scammed if you don’t interact with entities or people you don’t know.
The history of scams dates back thousands of years. In fact, one of the earliest recorded cases happened in 300 B.C., when a Greek merchant tried to skip out on paying the interest he owed on a loan.
But how have scammers always found “willing” victims? What is it about the human psyche that sets us up to be targets? What mind tricks do scammers use to take advantage of us—and is it possible to outwit their mind games?
Strengthening your inner skeptic and taking care of your mental and financial well-being can go a long way in protecting you from potential fraud and identity theft.
Inside the scammer’s playbook
Human beings are naturally inclined to trust one another, which can make us vulnerable to scams. But like a cloud of moths that tap at a window to reach a light, scammers prove relentless in their pursuit of their next victim.
Stay alert and watch out for these seven common psychological tricks.
Act with authority: Society teaches us to respect authority figures, or at least to give them the benefit of the doubt. So, when a call, email, or text comes in claiming to be from a legitimate authority figure—a government agency, the bank, a celebrity, etc.—we typically hop to action. Con artists know this and use logos, addresses, and authoritative language that make them look and sound like the real deal.
To combat this, always verify the identity of any entity before handing over your personal information or money.
Scare you with scarcity: “Limited time offer!” “Sale ends at midnight!” “Only 12 left!” “Being watched by 345 other users!” Did any of these scarcity-themed warnings drive up your heart rate? The possibility that our luck, a deal, or an item is about to run out can spur us to take action. It’s a primal survival instinct that scammers love to exploit, too.
Before you react, hit the pause button. Investigate the offer, look into the sender’s claims, and search their business name against the Better Business Bureau’s (BBB) Scam Tracker. If they check out, you can make a calm, informed decision rather than a provoked and panicked one.
Pull you in with an emotional appeal: Does the message you received scare you? Does it threaten something nefarious will happen to you, your loved ones, or anyone else if you don’t act fast? Does it pitch a sob story about a stranger in need who requires money for medical treatment, safe harbor, or otherwise? If any of this rings true, your internal scammer warning bells should sound loud and clear.
If you ever receive a threat, contact your local police and verify that you and your loved ones are safe. Give only to charities licensed with 501(c)(3) status (this government-issued designation means you get tax credit for donations you make to the tax-exempt entity). Never give cash to those you don’t know or give strangers access to your personal financial information.
Guilt you into acting reciprocally: Scammers exploit our sense of obligation by offering something seemingly “free,” such as a subscription, discount, or gift. Once you accept, they demand far more in return than what they initially gave. Remember, “free” offers almost always come with strings attached. Even if “all” you do is share your email address in return, you’re setting yourself up for exploitation.
Don’t take gifts from wolves in sheep’s clothing. And if you do accidentally accept an offer from a scammer, end the relationship, block the sender, and report them to the Federal Trade Commission (FTC) and BBB.
Make it personal: Have you ever heard that dropping someone’s name in conversation with them endears them to you? It’s a tried-and-true sales tactic that scammers use as well. They often stalk their victims online and use the details they farm from public social media accounts to ingratiate themselves with their marks.
Keep your social accounts private and only let people you know into your network. Do not enter financial relationships with individuals you know only over the phone or online.
Trap you in a sunk-cost cycle: You've probably heard someone justify staying in a toxic job or relationship because they've already invested so much time in it. Scammers exploit this same mindset to ensnare their victims. In a sunk-cost scam, the fraudster ensures your initial, small investment delivers results, building trust and encouraging you to invest more. When later investments fail to produce returns, they convince you that only by investing even more can you recover your losses. This cycle continues, leaving you deeper and deeper in the scam.
Stick to investing with vetted, tried-and-true professional establishments and licensed professionals. Be transparent with your loved ones about your investments. If something seems too good to be true, know it almost always is. If you slip up and invest in a con, pull out immediately and cut off contact with the scammer. Report them to the authorities.
Shame on them: Shame is the biggest psych-out of them all. Scammers bank on the likelihood that their victims’ shame and embarrassment will keep them silent. When a scam goes unreported as a result, the con artist wins because the greater population of potential marks is none the wiser.
Ditch the shame and shout you’ve been scammed. Report the scam and the scammer to local, national, and federal authorities. If you’re an Allstate Identity Protection member, we're here for you every step of the way.
Why we're vulnerable to scams
Research shows we’re most vulnerable to scams during challenging times. Feeling financially strapped, emotionally isolated, or mentally worn down can impair our judgment, making us more susceptible to fraud.
Scammers exploit these vulnerabilities, but awareness is your best defense. Stay cautious, especially when life feels overwhelming, and lean on trusted resources to stay protected.
How to protect yourself from scams and identity theft
Protecting yourself from scams and identity theft starts with understanding the psychological tactics fraudsters use to manipulate their victims. By staying informed, cultivating a healthy dose of skepticism, and taking proactive steps to protect your personal and financial information, you can outwit scammers at their own game.
Remember, falling for a scam doesn’t define you. Stay vigilant, and when in doubt, always pause, verify, and report suspicious activity. Together, we can make it harder for scammers to succeed.