Overview:

Scams are becoming increasingly sophisticated and can target anyone, regardless of intelligence. Smart people can fall prey to scams due to cognitive biases such as confirmation bias, authority bias, and scarcity principle. Emotional manipulation is also a common tactic used by scammers to trick individuals into taking action. To avoid falling victim to scams, it's essential to be aware of one's biases, ask for help when unsure, and take the time to think through an offer before making a decision.

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Photo: champlifezy via 123RF

Gone are the days when scams were easy to spot. Mail, phone calls, and internet scams are all prevalent and target everyone. That’s why there’s no shame in getting scammed; even the most intelligent people fall prey to modern scam tactics. Fortunately, understanding how scam artists exploit people makes it easier to avoid the traps.

Scam Risk Factors

Contrary to popular belief, it is not just older people who are susceptible to scams these days. Anyone can fall prey to a scam, especially given their increased presence online. However, some traits make individuals more vulnerable.

  • Social isolation and loneliness
  • Financial struggles
  • Over-confidence in personal security measures
  • Lack of knowledge regarding current schemes

How Smart People Get Scammed

Even if you don’t fit the risk-factor profile, you can still get scammed. Smart people might think they can avoid trouble, but these vulnerabilities can be easy for con artists to exploit.

Thinking in a Vacuum

Many intelligent people recognize that a situation might be a potential scam, but they fall for it anyway. Why? In this case, smart people are analyzing the cost-benefit ratio of completing the scenario’s steps, and they decide that a risk is worth the potential reward.

A study by psychologists in 2018 noted that “even though about 60% identified the solicitations as likely a scam, they also still viewed the opportunity as potentially beneficial.”

In these instances, the problem isn’t about being completely conned, it’s thinking too narrowly about the likely costs and benefits. Even if the first step in a scam might have a decent risk-reward ratio, there is almost always more harassment coming. You don’t pay the fee to enter a bogus competition, lose, and then move on with your life; the scammers continue to hassle you for more payouts with fewer rewards. Smart people can get stuck knowingly participating in a scam if they fail to look several steps ahead and calculate the real risks.

Falling Prey to Cognitive Biases

Cognitive biases are our personal ways of thinking and interpreting facts that can appear contrary to rational judgment or objective truth. Cognitive biases can be beneficial, enabling us to make faster decisions in familiar situations, but they can also lead to trouble. Smart people are just as susceptible to these patterns of thinking, and scam artists intentionally exploit them.

  • Confirmation bias: We pay more attention to information that confirms what we already believe.
  • Optimism bias: Bad things happen to other people far more than to us.
  • Authority bias: If the person or materials look official, they carry more influence.
  • Scarcity principle: Limited or time-sensitive offers are more valuable.

It is easy for scammers to use each of these biases to make their offers seem more legitimate, appealing, or worth the risk.

Photo: rokastenys via 123RF

Being Pulled into Emotional Manipulation

One of the top tools in a scam artist’s arsenal is emotional manipulation. No matter how smart we are, when emotions take center stage, our logical brain moves offline. Scammers want to circumvent logic and reason as much as possible, so they target emotions.

It’s not a coincidence that most scams threaten legal action, claim an emergency, or offer a once-in-a-lifetime benefit: Touching on fear, anxiety, and threat of loss causes the emotional part of our brains to take over. Our brains were designed to recognize a threat and quickly react, so any time we sense fear or danger, the same process takes over. You may not be running from a lion, but your brain thinks an immediate decision about the offer on the phone is of utmost importance.

Responding to Perceived Social Pressure

Intelligent people aren’t just good at academics; they’re often adept at interacting with others and moving through society successfully. When a scam artist exploits certain social norms, it can be more challenging for intelligent individuals to resist.

  • Reciprocity: If a scammer offers something helpful or a free sample, refusing something in return can feel wrong.
  • Fitting in: When “everyone” is taking part in an offer, you don’t want to be left out.
  • Appearing uneducated: Scammers who speak with authority and subtly belittle your lack of knowledge about a “legitimate” issue can target your desire to maintain credibility with your social circle.

Quick Steps to Avoid Scams

By reflecting on your own limitations and following these guidelines, you can more easily avoid getting scammed.

  • Be humble. Your information is for sale, and you have not protected yourself against scams. Don’t assume you’re too smart to fall for a con.
  • Pause and slow down. Nothing legitimate is so urgent that you can’t stop and call back later after you’ve looped in your logical brain.
  • Be aware of your biases. If you understand how a scammer might exploit your weaknesses, you’ll notice their tactics more quickly.
  • Ask for help. If you’re unsure, confirm information, ask a friend, or reach out to professionals. You are not admitting defeat if you need help recognizing a scam.

Ultimately, scammers target everyone, regardless of intelligence. Staying educated and keeping up on the latest scam trends, as well as being in touch with your own weaknesses, can go a long way toward keeping you (and your wallet!) safe.