So, what is it about human nature that makes us so quick to exploit new technology for scams? Why do time, money, and extreme effort that could be used for good so often get funneled into money-making schemes that prey on others?
It seems that since the dawn of time, whenever someone comes up with a new idea or technological breakthrough, someone else is right behind them, using the new innovation to scam the general public.
On March 10, 1876, Alexander Graham Bell sent the first words via telephone to his assistant John Watson: “Mr. Watson, come here. I want you.” Not ten minutes later, Mr. Watson supposedly received another call: “Mr. Watson, you’ve won a new car; all you need to do is cover the shipping costs.” Thus, both the telephone and the telephone scam were born.
Of course, I kid; the second call Watson got was from a Nigerian Prince.
Ridiculous, but this does underscore a very real phenomenon. Every time society experiences a technological leap, scammers follow quickly behind, looking for new opportunities to deceive and defraud.
So, what is it about human nature that makes us so quick to exploit new technology for scams? Why do time, money, and extreme effort that could be used for good so often get funneled into money-making schemes that prey on others? Those who actually read my blogs will scoff at my naivete and say, it’s right there in the question, you mook, money-making.
But there’s more to it than that; I just know it. So today’s blog will be a dive into the psychology behind scamming and explore how new technologies—from the telephone to artificial intelligence—inevitably spark new ways for people to get conned by strangers.
Also, if you are reading this, I am currently trapped in Botswana, where I was checking on the estate of my grandfather, who recently passed away, leaving me a billionaire. However, I don’t have money for a bus ticket to the airport. If you could send me …
The Allure of Easy Money
At the heart of almost every scam lies a singular driving force: money. The desire for wealth, particularly when it seems easily attainable, is a powerful motivator for people to engage in fraudulent activities. Which is odd, the term "easy money." Money, whether you have it or you don’t, is anything but easy.
Some will think of the old Snake Oil salesman; however, that idea isn’t the best, as, despite what it eventually became, snake oil was an actual healing balm.
A Word on Snake Oil
In the late 19th century, snake oil became synonymous with fraudulent health claims, but the original product had a legitimate basis. In traditional Chinese medicine, snake oil was derived from Chinese water snakes, which are rich in Omega-3 fatty acids. These fatty acids act as natural anti-inflammatories, effectively treating ailments like arthritis and bursitis. When Chinese laborers introduced snake oil to the American West, they brought with them a remedy that genuinely worked.
However, as demand grew and the supply of Chinese water snakes dwindled, opportunists saw a chance to exploit the burgeoning market. They substituted Chinese water snake oil with rattlesnake oil, a far less effective alternative. Unlike their Chinese counterparts, rattlesnakes have a much lower fatty acid content, making their oil ineffective for reducing inflammation. What started as a legitimate treatment quickly became a symbol of medical fraud, as "snake oil salesmen" peddled useless remedies, capitalizing on the public’s ignorance and trust. This blend of fact and deception is a reminder that some scams are rooted in legitimate practices, only to be diluted by those seeking easy profit.
So, you know, ease up on the snake oil thing.
We move on.
Greed as a Basic Human Instinct
Humans have always been drawn to wealth and material success. For many, financial stability is synonymous with safety, power, and freedom. In the modern world, where wealth is often idolized, the allure of a quick buck can be difficult to resist—especially for those who are opportunistic by nature. Scammers know that preying on people's financial hopes and desires is a quick route to success.
For scammers, this desire manifests as a relentless drive to make money with as little effort as possible. Scams offer a way to sidestep traditional means of wealth accumulation, bypassing hard work, education, or talent. Instead, scammers create elaborate cons that convince others to part with their money.
Low Risk, High Reward
Another psychological factor at play is the perception that scams are low-risk, high-reward endeavors. For some, the internet and other technological innovations create the illusion of anonymity, where the consequences of unethical behavior are less tangible.
In the early days of new technologies, there is often little oversight or regulation. For example, in the Wild West days of the internet, phishing schemes and email scams were rampant because law enforcement and cybersecurity measures hadn’t yet caught up with the pace of innovation. Similarly, the advent of cryptocurrency brought with it a host of new opportunities for scammers to exploit loopholes and a lack of regulation, leading to high-profile fraud cases and millions in losses for unsuspecting victims.
Examples
Consider how scams have evolved alongside the stock market, which, in its early days, was plagued with Ponzi schemes and fraudulent investment opportunities. People were drawn to what appeared to be easy profits, only to be left penniless when the schemes collapsed. Fast forward to the 1990s, when the internet introduced a new era of email scams—such as the infamous Nigerian Prince scam—that promised victims untold riches in exchange for a small upfront payment.
In recent years, cryptocurrency has taken center stage. Scams like fake Initial Coin Offerings (ICOs) and "rug pulls" have cost investors billions. These fraudsters offer the illusion of getting in on the ground floor of a cutting-edge investment, only for the perpetrators to vanish with the funds, leaving investors empty-handed.
The Thrill of Deception
Money isn’t the only motivating factor. For some scammers, the act of deception itself provides an irresistible rush. Psychologists have identified a collection of personality traits, known as the "Dark Triad," that are common among individuals who engage in manipulative or unethical behavior. These traits—Machiavellianism, narcissism, and psychopathy—can drive people to scam others for the sheer thrill of getting away with it.
Psychological Drivers: The Dark Triad
Machiavellianism refers to a manipulative, calculating personality that prioritizes personal gain over the well-being of others. Scammers with these traits often have no qualms about deceiving people if it benefits them financially or socially.
Narcissism, another trait of the Dark Triad, is marked by an inflated sense of self-worth and entitlement. Narcissistic scammers may believe that they are smarter or more deserving than their victims, justifying their behavior as a necessary means to an end.
Finally, psychopathy is characterized by a lack of empathy or remorse. Psychopathic individuals may take pleasure in watching others suffer or in “beating the system,” which can fuel their drive to scam others.
The Scammer’s Game
For some scammers, the act of deceiving others provides a psychological reward beyond the financial gain. These individuals may see scamming as a game, where the goal is to outsmart their victims. The more intricate and convincing the scam, the greater the satisfaction.
Scammers might even view themselves as "hustlers" or "entrepreneurs," believing that their ability to pull off a successful con is proof of their superior intelligence. This mindset allows them to rationalize their behavior, framing it as a legitimate form of competition rather than a moral failing.
Examples
One famous example of a scammer who fit this psychological profile is Frank Abagnale, whose life was chronicled in the movie Catch Me If You Can. Abagnale’s thrill came not just from the financial rewards of his cons, but from the challenge of deceiving people in increasingly elaborate ways, from posing as a pilot to forging checks worth millions.
Today’s social engineers—scammers who manipulate people into divulging sensitive information—thrive on the same thrill. Using phone calls, emails, or even in-person interactions, they trick their targets into giving up passwords, credit card numbers, or other valuable information. These scammers view each successful con as a victory in their personal game of deceit.
Evolutionary Instincts: Opportunism and Survival
Some evolutionary psychologists believe that opportunistic behavior is hardwired into human nature. In a world where survival often depended on resourcefulness and cunning, those who were able to exploit others may have had a better chance of thriving.
Survival of the Cunning
In ancient societies, being clever and opportunistic could mean the difference between life and death. Scamming—whether by tricking someone out of their food, money, or resources—may be a modern manifestation of these primal survival instincts.
Scammers, in this view, are simply responding to an age-old evolutionary drive to maximize their own resources, often at the expense of others. While modern society has introduced laws and ethical norms to curb this behavior, the instinct to take advantage of opportunities may still linger.
Group Dynamics: Monkey See, Monkey Do
Opportunistic behavior can also be influenced by group dynamics. When people observe others benefiting from unethical behavior without immediate consequences, they may be more likely to rationalize their own participation. This “monkey see, monkey do” mentality can explain why scams seem to flourish in periods of rapid social or technological change. When scammers see others getting away with exploiting new technologies, they may feel emboldened to follow suit.
In this light, scams are not just individual endeavors; they can spread like a virus within a group. Opportunism becomes contagious when there’s the perception that everyone else is doing it and getting away with it. The fear of missing out (FOMO), especially when it comes to making easy money, only adds fuel to the fire.
Examples
A classic example of opportunistic behavior can be seen in pyramid schemes, which often rely on social networks to propagate. Once a few individuals start making money, others are drawn in, hoping to replicate that success. Soon, entire communities can become involved in the scam, with each participant rationalizing their involvement as just “playing the game.” By the time the scheme collapses, it’s too late, and many are left in financial ruin.
Similarly, the rise of cryptocurrency has seen waves of “get rich quick” schemes, often propagated through online communities or influencers promising incredible returns. In these instances, people are driven by the perception that others are benefiting, leading to a mass frenzy that scammers can exploit.
Technology as a Double-Edged Sword
While technology often opens the door to new scams, it also provides the tools to fight back against fraud. Every major technological breakthrough that has birthed new scams has also eventually spawned innovative solutions to counter them. This dynamic creates a constant cat-and-mouse game between scammers and defenders.
Scammers vs. Defenders
Technological advancements can empower scammers, but they also arm law enforcement, cybersecurity experts, and governments with new defenses. The same internet that brought us phishing attacks has also given rise to sophisticated spam filters, fraud detection algorithms, and encryption technologies that make it harder for scammers to succeed.
In recent years, AI has become a double-edged sword in the fight against scams. On one hand, scammers have begun using AI to create more convincing phishing emails, voice mimics, and even deepfake videos to deceive their victims. On the other hand, AI is also being deployed to detect fraudulent activity in real-time, identify suspicious behavior patterns, and block scams before they can cause damage.
The Cat-and-Mouse Game
The constant back-and-forth between scammers and defenders is reminiscent of an arms race. For every new scam that emerges, there are teams of ethical hackers, regulators, and security experts working tirelessly to develop countermeasures. But as defenses become more sophisticated, scammers are forced to become even more creative and innovative. The cat-and-mouse game continues, with neither side able to claim total victory.
Examples
In the early days of the internet, email phishing was one of the most common scams. Scammers would send out generic, poorly written emails claiming to be from banks or other institutions. As spam filters and awareness campaigns improved, phishing emails became more sophisticated, using personal information and branding to appear legitimate. Now, companies use machine learning to scan billions of emails and flag potentially dangerous messages before they even reach users’ inboxes.
Another recent example is the rise of AI-powered scam detection tools. Banks and financial institutions have started using AI to monitor transactions for unusual behavior, stopping fraudulent transactions before they can be completed. This has significantly reduced the success rate of many scams, but it’s also pushed scammers to develop even more elaborate methods to bypass these defenses.
Modern-Day Scams: AI, Cryptocurrency, and Beyond
As technology continues to evolve, so do the scams. In today’s world, two major areas of technological advancement—AI and cryptocurrency—are becoming fertile ground for a new generation of scammers.
AI-Powered Scams
Artificial intelligence has the potential to revolutionize industries, but it also opens the door to new types of fraud. One of the most concerning developments in recent years is the rise of deepfakes—AI-generated images, videos, and voices that are indistinguishable from real life. Scammers can now create fake videos of public figures, business leaders, or even friends and family members to deceive their targets.
Voice mimicry is another AI-driven scam tool. In one instance, scammers used AI to mimic the voice of a company’s CEO, calling an employee to authorize a fraudulent transfer of funds. These types of scams are difficult to detect because they use the victim’s own trust in familiar voices against them.
Cryptocurrency Scams
The decentralized and anonymous nature of cryptocurrency makes it a prime target for scammers. From fake ICOs to Ponzi schemes, the cryptocurrency world is rife with fraud. One common tactic is the "rug pull," where scammers promote a new cryptocurrency, driving up its value, only to suddenly sell all their holdings and disappear with investors’ funds.
The complexity of cryptocurrency also works in scammers’ favor. Many people don’t fully understand how blockchain technology works, which makes them vulnerable to fraud. Scammers exploit this knowledge gap to convince victims that they are investing in legitimate projects, when in reality, they’re being scammed out of their hard-earned money.
Future Threats
Looking to the future, it’s clear that new technologies will continue to bring new opportunities for scammers. Quantum computing, for example, has the potential to break even the most secure encryption methods, which could lead to a new wave of digital fraud.
As AI continues to develop, we may also see the rise of fully autonomous scam agents—AI programs that can carry out sophisticated scams on their own, with minimal human intervention. These AI agents could operate at scale, targeting thousands of individuals simultaneously, and evolving their tactics in real-time to avoid detection.
Why We Keep Falling for It
If scams are as old as humanity itself, why do people keep falling for them? Even in an age where information is readily available and fraud awareness campaigns are common, people continue to fall victim to scams. The answer lies in a combination of cognitive biases and over-trust in technology.
Cognitive Biases
Human beings are wired to fall for certain types of manipulation. Cognitive biases—mental shortcuts that help us make decisions—can work against us when it comes to scams. One of the most common biases at play is optimism bias, where people believe that bad things happen to others but not to them. This can lead individuals to underestimate their own vulnerability to scams.
Another common bias is social proof. People are more likely to trust something if they see others trusting it. Scammers often exploit this by creating fake reviews, testimonials, or social media buzz around their products or services. Once people see that others are “falling for it,” they’re more likely to join in, assuming it must be legitimate.
Over-Trusting Technology
As we become more reliant on technology, we tend to place an enormous amount of trust in the systems we use. Many people assume that because something is online or uses advanced technology, it must be safe. This trust can be dangerous when it comes to scams, as scammers often exploit the very technologies we rely on.
For example, people may be more likely to trust an email that appears to come from their bank because they believe in the security of modern communication systems. In reality, that email could be a carefully crafted phishing attempt designed to steal their personal information.
Examples
High-profile phishing attacks on companies like Twitter and Google, where employees were tricked into revealing passwords or other sensitive information, show that even the most tech-savvy individuals can fall for scams. In these cases, the attackers used social engineering tactics to bypass sophisticated security systems, proving that human error is often the weakest link in the chain.
Summing Up: Can We Stay Ahead?
So, will we ever fully outsmart scammers? History suggests that as long as there is new technology, there will be people trying to exploit it for personal gain. While we’ve developed increasingly sophisticated ways to combat scams—from encryption and AI to cybersecurity education—scammers are constantly evolving their tactics to stay one step ahead.
The key to staying safe in this ever-changing landscape is vigilance. Understanding the psychology behind scams is the first step in defending against them. By recognizing the red flags and learning how scammers operate, we can protect ourselves and our communities from falling victim to their schemes.
But as technology continues to evolve, the race between scammers and defenders will undoubtedly continue. The question isn’t whether new scams will emerge, but rather how we can stay ahead in the game of innovation and exploitation.
"Common Sense, come here. I want you."
