The Psychology of Scams
It’s becoming increasingly difficult to recognize investment scams. Scammers take advantage of real-life relationships, they use tactics similar to those of legitimate businesses, and they use fake websites that can outwit even savvy investors. Fraudsters are experienced at the art of persuasion, and know which questions to ask — and answers to give — to make you susceptible to their pitch.
Ever wonder how scammers do what they do? The FINRA Investor Education Foundation explains the science behind scams.
Fraudsters’ tactics look familiar because legitimate marketers use them, too. See strategies to help you distinguish good offers from bad ones.
Learn even more about the con’s playbook in this documentary, Trick$ of the Trade: Outsmarting Investment Fraud.