American Psychological Association | Online fraud is growing more sophisticated, with criminals exploiting basic psychological principles to manipulate victims and steal billions of dollars.
In a recent Monitor on Psychology article, the American Psychological Association examines how scammers use trust, urgency, fear, and emotional vulnerability to influence decision-making. Researchers also highlight the lasting psychological impact of fraud and the need for more effective prevention strategies.
The scale of the problem is significant:
Nearly $21 billion in cyber-enabled crime losses reported to the FBI in the U.S. in 2025
Nearly 4 in 10 American adults report having experienced fraud (AARP)
58% of adults worry about becoming a fraud victim (AARP)
Just 4% of fraud victims recover some or all of their stolen money (GASA)
The article explains how scammers exploit truth bias, our natural tendency to believe others, while using time pressure, distraction, and emotional manipulation to impair judgment.
Psychologist Martina Dove, PhD, who studies scam techniques and vulnerability, has analyzed scammer training manuals that reveal just how deliberate these tactics can be. Criminals are instructed to identify personal vulnerabilities and adapt their approach to build trust and manipulate victims. As Dove explains, “If a victim tells you this, then you need to be this type of person to convince them.”
Researchers emphasize that intelligence and experience offer no guarantee of protection. Anyone can become vulnerable under the right circumstances, especially as AI makes fraudulent communications more convincing.
Dove also calls for a more systemic approach to prevention, encouraging organizations to employ psychologists who can help identify suspicious patterns, strengthen security, and improve public education about scam tactics.
The article highlights the need for psychologists to play a larger role in fraud prevention while supporting survivors experiencing anxiety, depression, shame, and damaged relationships.
Read the full article: Why We Keep Falling for Fraud
At Operation Shamrock, we believe combating scams requires a coordinated approach that combines public education, survivor support, and systemic disruption. Understanding how criminals exploit human psychology is essential to preventing harm and building a more effective response to online fraud.
More on Psychology from Operation Shamrock
Scam Psychology — A Romance Fraud Case Study Martina Dove’s case study demonstrates how a romance scam can develop gradually, with the perpetrator building emotional dependence and credibility, aided by AI, before creating incidents that encourage financial compliance.
How Smart People Get Scammed: Psychology and Manipulation — Dr. Martina Dove joins the Stolen podcast to show how a real-life romance scam story demonstrates the psychological strategies scammers use to manipulate their targets.
