The Psychology of Scams: Why Smart People Fall For Them

By

Rotimi Oyedepo, SAN

Introduction:
I have been a prosecutor for a while now, and I can authoritatively tell you that fraudsters are not just criminals; they are master manipulators of human psychology. They study how people think, what they fear, and what they desire — then they use this knowledge to trick even the most intelligent and careful individuals. This explains why bankers, lawyers, professors, business executives, and civil servants sometimes lose millions to scammers.

Contrary to the general perception, I can confidently tell you that falling victim to fraud is not a sign of stupidity; it is a result of psychological manipulation.

How Do the Scammers Succeed?

Distinguished readers, please let us examine the scammers’ three most powerful weapons.

1. The Weapon of Urgency – “Act Now or Lose Out”

From the various schemes of fraud that I have either prosecuted or been privileged to crack, I found that scammers know that when people feel rushed, they stop thinking critically. A common trick is to send messages like:

• “Your bank account will be blocked in one hour unless you confirm your PIN.”
• “Pay today or you will miss out on this investment opportunity.”

By creating panic, they push victims into making hasty decisions. But here’s the truth: legitimate institutions never force you to act instantly under pressure. If a message makes you feel rushed, it’s a red flag. Please, take this from me.

2. The Weapon of Authority – “Trust Me, I’m From the Bank”

From experience, I also found that fraudsters often pretend to be officials from government agencies, banks, or even law enforcement. They use language that sounds official, fake ID cards, or cloned websites to win trust.

But remember: fraudsters wear the mask of authority because they know Nigerians respect titles and institutions. That is why you must always verify independently. Don’t call the number in the message — call the official customer care line. Don’t click suspicious links — go directly to the bank’s verified website. Please, do some independent due diligence.

3. The Weapon of Greed and Fear of Missing Out – “Double Your Money Quickly”

For Ponzi schemes, fake crypto investments, and “wonder banks,” this is the most common trap. They promise unrealistic returns: “Invest ?100,000 today and get ?200,000 in one week!”

Greed blinds judgment. People know it sounds too good to be true, but they still invest out of fear that others will profit while they are left behind. Unfortunately, such schemes always collapse, leaving victims in tears.

Why Even Smart People Fall

Scammers don’t target ignorance; they target human emotions. Everyone — whether educated or not — can feel pressure, fear, greed, or trust. That is why no one should ever say, “I am too smart to be scammed.”

How to Outsmart the Scammer

To protect yourself and your loved ones, keep these simple rules in mind:

• Pause before you pay — never act under pressure.
• Verify the source — check directly with your bank, company, or agency.
• Consult someone you trust — two sets of eyes see clearer than one.
• Listen to your instincts — if something feels wrong, it probably is.

Final Word

My final word on this is simple: fraudsters may be smart, but you can be smarter. By understanding their psychological tricks, you can resist their pressure and protect your hard-earned money. Remember this rule and constantly apply it:

? If it sounds too good to be true, it is too good to be true.

Dear reader, please don’t stay silent. Fraud thrives when victims keep quiet. If you encounter a scam attempt, report it to the appropriate law enforcement agencies of government or your bank.

*ROTIMI OYEDEPO ISEOLUWA, SAN
Special Assistant to the President on Financial Crimes and Public Prosecution Compliance