Why the first thing to do to reduce your risk of fraud is to chill out

An interesting factor has emerged amid the myriad reports during Fraud Prevention Month, regarding the effect of people’s emotions on their susceptibility to fraud.

A survey of those who had been victims of fraud found that around eight in ten said they had felt anxious, concerned, and stressed more than usual immediately before they were scammed. The Interac poll reveals that the victims’ emotional state clouded their judgment and decision making which made them vulnerable to fraud.

"Fraudsters prey upon innate human tendencies, particularly the power of stress, to narrow our thinking around quick and obvious solutions," explains Norman Farb, associate professor of psychology at the University of Toronto. "What makes these tactics so effective is their ability to leverage a threat to create a sense of urgency or fear; the ensuing stress speeds up judgment and suppresses our capacity for exploration and learning.”

Farb says that if people cultivate emotional awareness, they are more able to control the urge to deal with unexpected threats urgently and take time and effort to fully understand the situation instead.

This could mean, for example, that feeling a sense of urgency to click a link in a phishing email due to concern that an account had been compromised or a payment was overdue, would be replaced by thinking logically about whether the stated threat was even likely or possible.

“Fraudsters are banking on our desire to help or protect, and we can thwart their strategies if we believe that a well-informed, well-reasoned response is more likely to help or protect than a quick fix, however convenient it may seem," the professor says.

With multiple bodies urging Canadians to take the fraud and scams threat seriously and act to protect themselves, the survey points out that simple measures can make a difference such as pausing to think before committing to anything, particularly when sending money, consulting a trusted friend or family member, and trusting your instincts.