Criminals can trick rational people into scams for several reasons:

1. Cognitive Biases: Even rational individuals can fall prey to cognitive biases, such as confirmation bias, where they only pay attention to information that supports their preconceived notions, or optimism bias, which can make them underestimate risks.

^{Image by MART PRODUCTION}

How can a rational person become a victim of a scam?

Criminals can trick rational people into scams for several reasons:

1. Cognitive Biases: Even rational individuals can fall prey to cognitive biases, such as confirmation bias, where they only pay attention to information that supports their preconceived notions, or optimism bias, which can make them underestimate risks.

2. Emotional Manipulation: Scammers often use emotional appeals, creating a sense of urgency or fear. It can cloud judgment, leading even logical thinkers to make hasty decisions.

3. Social Proof: People often look to others for cues on behavior. If criminals present a scam as widely accepted or endorsed by others, a rational person may feel reassured and more willing to engage.

4. Complexity of Scams: Criminals design scams to be complex and convincing. A rational person may analyze and weigh the elements in a way that leads them to conclude it’s legitimate, especially if it appears to have realistic details.

5. Information Overload: Scammers can present a flood of information that can overwhelm rational judgment. A person might need to catch red flags when sifting through the data.

6. Trust in Authority: If someone who seems credible or is in a position of authority presents a scam, a rational person may take their claims at face value, assuming their expertise makes them trustworthy.

7. Desire for a Reward: The potential for a high return on investment can lead rational individuals to take risks they might otherwise avoid, particularly if the scam promises easy money or great benefits.

Understanding these factors can help individuals remain vigilant and protect themselves against scams.

Here’s a summary of a real story: The Day I Put $50,000 in a Shoe Box and Handed It to a Stranger I never thought I was the kind of person to fall for a scam.

Charlotte Cowles, a personal finance columnist for The Cut, shares her experience of being scammed out of $50,000 through an elaborate Amazon scam call. The scam began with a call about a suspicious Amazon order, which led to a series of interactions with supposed Amazon and FTC representatives. These scammers convinced her that her identity had been stolen and used in various fraudulent activities, including opening multiple bank accounts and purchasing vehicles. They manipulated her into transferring money to “protect” her assets, ultimately leading to a significant financial loss. The article highlights the sophistication of modern scams and emphasizes the importance of vigilance and skepticism when dealing with unsolicited calls and messages.