All the Cognitive Biases that Causes You to be Scammed

If you’ve been around the scam world for long enough, you’ll know it’s not just about the slick con artist spinning their story. A lot of the time, the scam works because of the way our brains are wired. We’re all susceptible to cognitive biases—those sneaky mental shortcuts we take without even realising it. Once you understand how these biases work, you’ll be in a better position to spot a scam before it grabs hold. Let me walk you through some of the big ones, with a few personal examples thrown in.

1. Reciprocity Bias

Ever been on the receiving end of a “gift” you didn’t ask for, and felt that weird obligation to give something back? I know I have. I remember once walking through a busy market in Paris, and out of nowhere, a vendor handed me a bracelet. I didn’t want it, but there it was, stuck on my wrist. Immediately, I felt the pressure to return the favour. Next thing I knew, I was being asked for 20 euros. A classic example of reciprocity bias: they gave me something, and I felt obligated to give back. It’s a simple trick that scammers love to use to make you feel indebted, even when you didn’t want what they were offering in the first place.

2. Overconfidence Bias

I’ve been guilty of this one myself—thinking, “I’ve been in the scam world long enough, there’s no way I’d fall for one of those.” It’s easy to think you’re immune when you’ve been on the other side of the fence for years. But trust me, this is exactly when you’re most vulnerable. A few years ago, I got an email that seemed legitimate at first. It was from a company that I’d interacted with before, offering a “one-time” business opportunity. My overconfidence bias kicked in, and I didn’t bother double-checking the details. Fortunately, I caught myself before sending any money, but it was a close call. Overconfidence makes us think we can spot every scam, but it’s that very mindset that opens the door for them to slip through.

3. Authority Bias

Here’s one that really trips people up, and I can relate. I remember when Theranos first started making headlines. The way Elizabeth Holmes had surrounded herself with credible scientists and doctors, it was hard not to believe in her. After all, if all those experts were vouching for her, surely the technology was real, right? I’ll admit, I didn’t question it for a while. It wasn’t until the cracks started showing that I realised how powerful authority bias can be. It’s not just in big corporate scandals, either. I’ve noticed that even in my own line of work, some people tend to trust me just because of my website URL—www.conman.com.au. But that doesn’t automatically make me an expert. The point is, we’ve got to question authority, even when it’s wrapped up in a shiny package.

4. Loss Aversion

This one hits close to home, and I’ve seen it with many scam victims. I once met a guy who’d sunk thousands into a “get rich quick” scheme. When things started going south, he didn’t want to face the fact that he’d lost the money. Instead, he kept throwing more at it, convinced that if he just kept going, he’d get it all back. Loss aversion is powerful—it makes us afraid of admitting we’ve lost, so we keep going in hopes of recovering what we’ve already spent. It’s a dangerous cycle, and I’ve seen it make good people keep investing in failed schemes simply because they couldn’t accept the loss.

5. Commitment Bias

Commitment bias is a tricky one. Once we invest in something—whether it’s emotionally, financially, or just with time—it becomes so much harder to back out, even if we start having doubts. This is why online dating scams are so effective. I’ve had a few people reach out to me after getting caught in one. They’d spent months building an emotional connection with someone they’d never met, and by the time the scammer asked for money, they were so invested in the relationship they couldn’t walk away. I had a friend who got caught up in one of these. She kept telling herself that the money she’d already sent was worth it because she was “in love.” The commitment to the relationship kept her trapped in the scam.

6. Illusion of Control

I can’t count how many times I’ve heard someone say, “I’ve got a foolproof system for forex trading!” It’s easy to fall for the illusion of control when a scammer sells you a “proven method” for success. I once had a friend who’d been promised huge returns from an online trading course. The more he studied the “system,” the more confident he became that he had control over the market. But in reality, the scammer was controlling everything. My friend ended up losing a lot of money before he realised the whole thing was a con. We all like to feel like we’re in control, but when it comes to scams, that’s exactly what the con artist wants you to think.

7. Ostrich Effect

It’s easier to ignore a problem than face it head-on, right? I’ve definitely done this before. I remember a few years ago when a friend of mine started investing in cryptocurrency. Everyone was talking about it, and the FOMO (fear of missing out) was real. But the more I looked into it, the more I realised there were signs that the market was a bubble. Instead of confronting those signs, I kept telling myself that “everyone else is doing it, so it must be fine.” This is the ostrich effect—burying your head in the sand because it’s too uncomfortable to acknowledge the risks. By the time I woke up and pulled out, I had lost a bit of money. It’s always easier to ignore the red flags than confront the truth.

8. Availability Heuristic

Ever noticed how the more you hear about something, the more you believe it’s true? It’s like that friend who keeps telling you about a “hot new investment,” and the more they talk about it, the more you start thinking it’s legitimate. This is exactly how “pump and dump” stock scams work. I had a colleague who fell for a stock scam years ago because everyone kept talking about how “big” this one company was going to get. It was all over social media, and people were hyping it up like it was the next big thing. Of course, once he jumped in, the stock crashed, and he was left with nothing. It’s a clear case of the availability heuristic—just because everyone’s talking about something doesn’t make it true.

9. Backfire Effect

You know how when you’re shown proof that something isn’t true, but you double down on your beliefs anyway? That’s the backfire effect. It’s the reason some people just won’t let go of their conspiracy theories, even when presented with hard facts. I’ve had debates with people who were deep into pyramid schemes, and no matter how much I showed them the red flags, they wouldn’t listen. The more they were told they were wrong, the more entrenched they became in their belief that they were right. It’s a dangerous bias, and it can make people more susceptible to future scams, especially if they’re clinging to misinformation.

Conclusion

These cognitive biases are sneaky. They’re not just tricks from the scammers themselves—they’re mental shortcuts we take without even realising it. And once you’re aware of them, you’re in a much better position to spot a scam. It’s not foolproof, but it’s a start. Next time something seems too good to be true, take a step back and ask yourself which of these biases might be at play. That little bit of self-awareness can save you from a big mistake.