They Don’t Start by Asking for Your Money

I recently had breakfast with someone I know who told me about a three-hour incident with a fraudster, that began with a text message!

Thankfully, he didn't lose any money. But he was exhausted and bothered that he had spent three hours following the instructions of someone he believed was an authority figure trying to stop a crime.

That's worth understanding.

The fraudster didn't start by asking for his money.

He created a problem, established authority, gained trust and gradually convinced him that he was actually helping protect someone else from being victimized.

The Psychology of the Scam

Sophisticated scams often follow a progression something like this:

Concern → Fear → Authority → Trust → Responsibility → Isolation → Action

It may begin with an email, text or phone call about suspicious activity. Something is wrong, and it needs your immediate attention.

Then an authority figure enters the story: your bank, the police, the FBI, the IRS or another trusted organization.

Fear becomes trust. And then something even more powerful can happen: you are given responsibility.

You're no longer protecting yourself. You may believe you're helping stop a criminal, protect another victim or assist an investigation.

Eventually comes one of the most dangerous ingredients:

Isolation.

You may be told not to discuss what's happening with your spouse, family, banker or financial advisor. You may even be told that doing so could jeopardize the investigation.

The fraudster needs isolation.

A second person breaks the spell.

When Strange Requests Begin to Sound Reasonable

Once someone accepts the story, instructions that would ordinarily seem ridiculous can suddenly seem reasonable.

Fraudsters may instruct victims to:

• Withdraw large amounts of cash.

• Move money into a supposedly "safe" account.

• Go to a Bitcoin or cryptocurrency ATM and deposit cash.

• Purchase gift cards, gold or other valuables.

• Provide account information, passwords, verification codes or QR codes.

• Lie to a bank employee about why the money is being withdrawn.

• Stay on the phone throughout the process.

• Tell no one what they're doing.

Those aren't security procedures. They're warning signs.

A legitimate government agent or financial institution isn't going to ask you to secretly move your personal money to help catch a criminal.

A Real-Life Example: How the Story Develops

Here's an abbreviated version of the scheme that recently targeted someone I know.

1. The alarm: It began with a supposed fraud alert involving an Apple account. Something was wrong and required immediate attention.

2. The authority: The call progressed to people claiming to be FBI agents. They used official-sounding language, case numbers and urgency to make the situation believable.

3. The change in roles: This was the psychological pivot. The victim was no longer simply being told to protect himself. He was led to believe he was helping law enforcement stop other people from being victimized.

4. The isolation: The conversation continued for hours. Hanging up, calling someone else or independently verifying the story would have threatened the fraudster's control.

5. The action: Eventually, the story was intended to produce financial action—moving money, withdrawing cash or potentially using methods such as cryptocurrency to supposedly protect funds or assist the investigation.

Notice what happened.

They didn't start by asking for money.

They started by creating concern. Then came fear, authority, trust and responsibility. Isolation made it possible to move toward action.

Concern → Fear → Authority → Trust → Responsibility → Isolation → Action

Break the Spell

The scammer's greatest weapon may not be technology. It may be getting you alone with the story long enough that the story becomes believable.

So create a circuit breaker:

Stop. Hang up. Tell someone. Verify independently.

Don't use the phone number, website or link the person gave you. Find the legitimate organization yourself and contact it independently.

And before moving a significant amount of money because of an unexpected email, text or phone call, tell another person you trust.

There should never be urgency and secrecy surrounding an important financial decision.

The fraudster needs isolation. A second person can break the spell.

And if you've ever gotten further into one of these schemes than you'd like to admit, embarrassment shouldn't keep you quiet. Talk about it. Your experience may be exactly what keeps someone else from becoming the next victim.