The Scams Among Us: Who Falls Prey and Why

The Scams Among Us: Who Falls Prey and Why. Yaniv Hanoch, Stacey Wood. Current Directions in Psychological Science, May 17, 2021. https://doi.org/10.1177/0963721421995489

Abstract: Not a week goes by without stories about scams appearing in popular media outlets. Given the ease with which scams can be circulated, they have become one of the most common crimes globally, inflicting high emotional, financial, and psychological tolls on millions of individuals. Despite their profound and pervasive impact, researchers know relatively little about why some individuals fall victim to scams but others remain immune to the techniques utilized by scammers to lure potential victims. For example, research thus far provides mixed results about the impact of demographic characteristics (e.g., age) as well as personality variables (e.g., risk taking) on individuals’ susceptibility to scams. Even less is known about how the nature or type of scam affects an individual’s susceptibility. Gaining a deeper understanding of these issues is the key to being able to develop preventive programs and reduce the prevalence of victimization. Here, we discuss some promising directions, existing gaps in current knowledge, and the need for decision scientists to address this important problem.

Keywords demographic variables, fraud, individual differences, risk factors, scams, susceptibility

Conclusion

Scams present a multidimensional and dynamic problem. Scammers attack individuals of all backgrounds, in every corner of the world, and with novel and changing techniques and lures. Given that there are millions of scam victims every year, there is a pressing need to identify what factors render individuals more vulnerable to scam solicitations and, more important, what preventive measures can be used to alleviate this problem. Most, if not all, of the advice that exists has not been tested; nor does it seem to work—as is evident in the increased number of victims. Psychologists, as well as other behavioral scientists, have insight and training that place them perfectly to tackle this problem.

Despite the valuable knowledge gained from the studies presented here, there is plenty of room for a wide range of further work to be conducted. First, there is a growing need to develop theoretical frameworks—ones that incorporate cognitive abilities, neurological insights, and personality research—that can advance understanding of scam susceptibility. Empirical researchers, moreover, must improve the external validity of their work and conceive ways to conduct more realistic and natural field studies (e.g., Ebner et al., 2018). Furthermore, because little is known about how to reduce scam compliance, there is an urgent need to conduct research in this area that will make it possible to develop decision aids and other tools to reduce scam compliance. Although many sources on the Internet offer valuable advice (see Table 1), many people fail to follow it (e.g., use 123456 as their password). Whether nudges or other behavior-modification techniques can improve adherence to these simple rules is, likewise, an open question. Given the complex nature of the problem, closer collaborations among researchers in different disciplines (e.g., computer scientists and psychologists) is likely to be fruitful. Finally, given the emotional effect of scams, clinical work is needed to advance understanding about the impact of fraud on victims’ psychological well-being and how to help them.