Why do people fall for fraud?
People can be vulnerable to fraud for all types of reasons — and scam artists are good at finding and exploiting all of them. Here are a few reasons why someone might fall victim:
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People want to believe they can get something for nothing—such as free gifts and prizes so they may be more vulnerable to these offers.
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We want to have faith in the information our friends and relatives tell us. Fraudsters prey on our loyalty to the important people in our lives and leverage this trust to swindle us.
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Fraud artists are very convincing and good at what they do, so their websites, ads, and brochures look genuine.
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Fraud artists use legitimate sales tactics in their pitches, so it can be difficult to see through them. They often use tactics such as a limited time offers or use false peer pressure to get us to participate by saying that all of our friends are investing.
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Often, fraudsters warn us not to call the government, regulators, and banks. They say it's a secret opportunity or a hot tip, and we'll lose out on a great deal if we do. Of course, this helps the crooks go undetected.
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They play on our desire to contribute to a worthwhile cause.
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We're embarrassed. When we do fall for fraud, we don't like to admit it, or reveal that we lost money. The CAFC reports that they believe that less than 5% of victims report fraud, allowing fraudsters to scam others. Don’t be embarrassed, as anyone can fall for a scam and reporting this to SCU or directly to the CAFC helps protect others from falling victim to fraud. Read more about reporting fraud in our help centre.