November 14, 2021

The Science behind Scams: Tactics Scammers Use to Lure Consumers

Ever wonder how scammers do what they do? When it comes to investment scams, scammers are getting more and more sophisticated, and actually quite talented at deceiving people, resulting in more victims. FINRA Investor Education Foundation provides some interesting theories on the psychology of a scam. Here are some of the most common tactics:

  1. The “Phantom Riches” Tactic. Dangling the prospect of wealth, enticing you with something you want but can’t have. “These gas wells are guaranteed to produce $6,800 a month in income.”
  2. The “Source Credibility” Tactic. Trying to build credibility by claiming to be with a reputable firm or to have a special credential or experience. “Believe me, as a…

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