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 .

 

[kit_hung]

Yes, even highly educated people fall into false traps. It is not because they are ignorant but because their feelings mislead them.

Remember, a wise person sets limits and examines everything twice. Do not be in a hurry to give your money to anyone. Even the shape of a fish in the desert is not a medicine to eat. Understand that the trick of stealing is a game of drama.

 

[Min George]

That overconfidence is what makes people to lose money. You should see everything as a scam and let them prove not to be.

 

[eLdavis]

In most cases, it usually due to greed. They are aware it's risky but due to their greed they would still be willing to try it.

 

[Stardom22]

l have realised that most people in our generation are very poor. So with that being said, people are on the lookout for any possible ways that seem to elevate them from poverty and change their lives. That's why they grab the simple get rich quick scam projects for sure.

 

[Starmix]

New to investing could be lured regardless of its legitimacy or not, they are after money and make millions in the shortest way which is wrong. It is best for the investor to do research before deciding.

 

[Augusta]

The root cause of people falling victim to a financial fraud is their uncertainty about the details of the financial environment