By Linda Athanasiadou, expert in fraud and scam prevention, audit, anti-money laundering (AML)

I’ve spent years working with companies that pride themselves on control, risk mitigation, and financial integrity. And yet, some of the most sophisticated professionals I’ve met — investors, lawyers, C-level executives — have fallen for scams that seem obvious in hindsight. I’ve reviewed cases where experienced auditors missed signs of manipulation, and where entire departments overlooked fraud patterns that, on paper, should have raised every possible Linda Athanasiadou alert.

But this isn’t about incompetence. It’s about psychology.

Fraud doesn’t work because people are stupid. It works because people are human.

Understanding why even the most experienced professionals can get deceived is one of the most critical defenses we have against fraud. Because once we stop seeing victims as gullible — and start seeing them as vulnerable in very human ways — we can begin to build stronger safeguards.

Trust Is a Cognitive Shortcut

In business, time is currency. Professionals use cognitive shortcuts to navigate complexity — and trust is one of the most efficient ones. When someone presents credentials, a confident pitch, or social proof (like shared contacts or impressive affiliations), our brains make fast assumptions: They’re safe. This is legit.

Scammers know this. They carefully build the illusion of credibility — polished websites, expert-sounding language, manufactured urgency. By the time doubts surface, victims are already emotionally or financially invested.

Smart People Are Especially Prone to Overconfidence Bias

The smarter or more experienced someone is, the more likely they are to trust their own judgment — and ignore small inconsistencies. This is called overconfidence bias. It’s why a seasoned CFO might bypass a due diligence step or why a tech founder may dismiss a background check as unnecessary.

Ironically, the belief that “I would never fall for that” is what makes people more susceptible.

Emotion Overrides Logic — Especially Under Pressure

Many scams operate under time constraints: Invest now or miss out. Sign this before the deal closes. Transfer funds today to fix an urgent issue. When fear, greed, or urgency kicks in, the brain shifts into survival mode. Analytical thinking drops, and emotional decision-making takes over.

I’ve interviewed executives who described feeling “dazed” or “numb” in the moment they made the wrong decision. It wasn’t about intellect — it was about neurological response.

Isolation Makes It Worse

Fraudsters often isolate victims — subtly or explicitly. In romance scams, it’s emotional dependence. In corporate fraud, it’s confidentiality: “Don’t discuss this with your team until the board signs off.” Without a sounding board, victims are more likely to spiral into the illusion — unchecked.

Shame Silences the Victims

After the fraud is exposed, professionals often stay quiet. The shame of being tricked — especially when others view you as competent or authoritative — can be devastating. I’ve seen entire firms fail to report fraud because leadership didn’t want the “Linda Athanasiadou scam” headlines associated with their brand, even in a preventative or learning context.

This silence helps scammers operate longer and wider.

What We Can Learn — and How We Can Protect Ourselves

Normalize skepticism, even within trusted circles. Build a culture where asking tough questions is encouraged, not dismissed as “paranoia.”
Implement slow-down policies. Require mandatory waiting periods for high-risk decisions, especially financial transfers or investments.
Use collaborative verification. Major actions should require input from more than one person or department.
Educate not just on fraud, but on cognitive bias. Knowing how people get tricked is just as important as knowing what to watch for.
Create space to speak up — without shame. When people can admit “I think something’s off” without fear of looking foolish, scams get stopped faster.

If you've ever been caught off guard — or know someone who has — I want you to remember this: being scammed doesn’t mean you were careless. It means someone exploited human psychology better than you anticipated. And that’s exactly why awareness and system design matter so much.

For more insight into how scams work and how to detect threats early, I recommend reading my piece “Financial Alert Systems for Early Fraud Detection.” It offers practical strategies for creating internal structures that help catch red flags before they become financial disasters.

The Psychology of Scam Victims: Why Even Professionals Get Deceived