Why Do So Many Smart People Still Get Trapped in Scam Investments?

[Suba]

It turns out that even highly educated, knowledgeable, smart, and logical people can't guarantee they won't fall into Ponzi schemes and scam investments. This is primarily due to psychological factors that can cause smart people to lose their reasoning, such as:

1. Being influenced by those closest to them, family, or friends
2. Being trapped by cognitive biases that lead to misjudgments/analysis
3. Being overconfident and unable to be fooled
4. Being greedy and tempted by promises of large returns and no risk.

 

[Augusta]

They tend to believe that bad things are more likely to happen to others than to them This bias can lead us to underestimate the risk of being scammed, ma

 

[Fidelia]

Most smart people always know very strongly that a certain scheme they want to enter is scam. But their inherent greed still pushes them to enter.

 

[Springtime]

I think overconfident and greed are the two main reasons why even smart people get trapped in scam investment.

 

[Fidelia]

I think overconfident and greed are the two main reasons why even smart people get trapped in scam investment.

I haven't been scammed in a long while. I always try to make sure that every scheme that I enter online is always approached with suspicion.

 

[Starmix]

I am among them you mentioned. I fall to number 4 reason. I was scammed almost $400. Somebody convinced me to trade with a promise of good return. However, it turned out that it was a scam, so goodbye money.

 

[Augusta]

Smart people often overestimate their ability to detect fraud, making them overconfident and less cautious. Scammers prey on this .