The Spell: The Psychology of Fraud

Scammers are often masters of deception, with a range of tools to help them get past our defences. They use social
engineering and coaching tactics to put victims under what is becoming known as ‘The Spell’.

Victims who are drawn into The Spell will be so convinced by what they are being told that they will lie to their
banks, the police, and even their friends and family if they are questioned.

Some banks have Break The Spell Teams. They monitor unusual payments and speak to customers to make sure
they are not being scammed. Millions of pounds have been prevented from being sent to scammers by these teams.
However, the staff on these teams are often met with aggression and abuse because the victims have been coached
to lie to the banks.

When we read about fraud in the cold light of day with all the facts laid out, no emotional investment, and the full
benefit of hindsight, it is easy to see which strings have been pulled. However, the victim will have seen it very
differently from the inside. We always advise not to give data away if you don’t trust somebody. However, whilst
they are under The Spell, victims do trust the people that are exploiting them.

It’s no wonder that 40% of all crime is fraud when we see how vulnerable we are to coercion.

Fraud can be very similar to marketing, pressing the same buttons that make us keen to snap up a bargain. The
engineers behind a fraud attempt want you to take action whether this is through excitement, hope, fear or another
emotion.

So how do the scammers manage to put rationally thinking, intelligent people under The Spell?

Flawed Risk Assessments

Human beings are actually quite poor at assessing risk unless there is an emotional or visual connection to that risk.

Some people are scared of flying. Statistically, we are way more likely to be in a car accident than a plane crash. However, few people arrive at an airport by car feeling thankful that the most dangerous leg of their journey is over. The image of a plane crash is much more impactive to most people than a car accident, and so we attach a higher risk to it.

Do you have a mental image for what fraud looks and feels like? Unless you or one of your loved ones has been a victim, you probably don’t have an image which pops into your head when you hear the word “fraud”.

There is often no emotional hook. Humans are therefore not motivated by the risk of fraud. In contrast, being offered an amazing investment opportunity or thinking you have found the love of your life does have a strong emotional pull, and we may think the risk is worth it.

Unprotected Personal Data

Add to this biased risk assessment that humans like to touch, see and feel things. As we can’t do this with our data, we don’t protect it like we would our tangible possessions. It’s also easier to make an online payment than to part with cold hard cash, especially now that many of us have our card details saved into our phones.

Technology

Our closest connections used to be people - whether this was family, friends or workmates. We now have an extremely strong connection to technology.

We also have confirmation-bias - we only see what we want to see. If a fraudster tells us we will make money, and this is what we want to hear, we will be inclined to believe them. This makes us vulnerable to manipulation.

We also tend to read what supports our view and selectively research to find evidence that supports what we already want to believe. We can ignore or excuse any negative feedback until we are a victim.

Breaking The Spell

Removing the emotional blind spot that fraud tends to sit in is a great first step. It is useful to understand that this is how the fraudsters try to manipulate you, so that you can properly risk assess situations.

Speak to people rather than relying on research online - your friends, family, and your bank can all help you.

If you are asked to lie to your bank, take this as a significant warning flag.

Remember, the person who has promised you a “sound investment” and tells you what to say to your bank is going to be the person who receives your money.

The banks who question you about what a transfer is for will not be gaining anything. Their only interest is to keepyou safe. If you do lie to a bank and it turns out you are the victim of a fraud, they may not refund you.

Think of your personal information as a possession. You wouldn’t give your car or house keys to a stranger so definitely don’t give a stranger your address, date of birth, bank details etc.

Don’t let yourself be panicked or rushed into making a decision. Take a break before sending money anywhere, and if in doubt speak to your bank.