PHOENIX — Fraud scams are rampant.
According to the Federal Trade Commission, $5.8 billion was lost in nearly three million fraud scams in 2021 alone, and those are only the incidents that people actually reported.
Many people think they know the red flags and warning signs, so why are known scams still successful?
"They're using psychological principles to target victims, and to manipulate their thinking," said Dr. Emily Bashah, a licensed psychologist, who says scammers masters at manipulating the brain.
Dr. Bashah says scammers and con artists want your pre-frontal cortex to go dark. That's the part of the brain that allows people to think rationally and objectively when making decisions.
Instead, scammers want the limbic system, where people process emotions, to fire up. Scammers use different tactics to send emotions into overdrive, hoping people act on impulse.
Scammers often impersonate a person of authority - law enforcement, doctors, or a banking institution - and tape into a person's fear.
That's what happened to Jack. He received a call that he believed was from Navy Federal Credit Union. Jack's caller ID identified the number as Navy Federal Credit Union and the person on the line new Jack's personal details. He thought it seemed legitimate.
The caller claimed to be from the Fraud Division, saying someone was trying to wire $5,000 from Jack's account. Jack remembers some of the questions the caller asked seemed odd, but he shook it off because his money was on the line.
"He talked me into it. Because by now I'm off balance and, quite literally, I wasn't thinking straight anymore," Jack recalled. He said the caller seemed urgent, and felt he needed to act quickly or lose his money.
Jack was scammed out of $10,000.
Fortunately for Jack, Navy Federal Credit Union has returned the funds to his account while it investigates.
Unfortunately, Dr. Bashah warns, fear isn't the only psychological tactics scammers employ.
Scammers appeal to all types of emotions. Crooks can prey on feelings of loneliness as we often see in romance scams, prey on compassion using a tragic story to receive funds, and prey on people's greed by offering a chance to strike it rich through fake giveaways.
Dr. Bashah says there's several psychological principles scammers employ to appeal to various emotions.
The Scarcity Principle
It's a tactic where perpetrators will act as though the potential victim has to act right away. Scammers will claim there's a limited supply, a great deal, or something will be lost if the person doesn't take immediate action.
The Foot in Door Technique
Perpetrators will get a person to say 'yes' to something small - like asking for two minutes of their time. Then, they will ask for a bigger 'yes'. Dr. Bashah says, people have an inherent consistency to want to people please and act in pro-social ways. Once the initial yes is given, a second yes is more likely.
The Door in the Face Technique
Perpetrators will make a request that a person is 99.9% going to say 'no' to - like asking to borrow $100. Once a person says 'no', they will inherently feel bad. Then, the perpetrator will return with a smaller request - asking to borrow $10 - because the target is likely to say 'yes' due to past guilt.
Protecting yourself from potential scams
Dr. Bashah says it's important to return to rational thought. Do what you can to step back and talk to someone you trust.
If you receive a call claiming to be from a company, like your bank, you can hang up. Any reputable company will give you time. Then, call the company from the number on their website to confirm if they are truly the ones contacting you.
Screen your phone calls and filter your emails.
Check in on family and friends, especially if they're older. Create a safe, non-judgmental space to talk about potential scams or finances.
Lastly, if you've fallen for a scam don't feel embarrassed. Scammers are good at what they do, and scams are becoming increasingly sophisticated.
If you've become a victim of a scam - report it. File a complaint or report with the Arizona Attorney General, with the Federal Trade Commission, and take steps to protect yourself from identity theft.
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