Scams and the Role of Sunk Cost Theory
In this episode, guest and BBB Chief Innovations Officer Dale Dixon explains the psychology-based process scammers use to ensnare even the most educated consumers. Scam victims come from all walks of socio-economic and educational backgrounds. Dale kicks off the inaugural Money Fit Show by discussing the human biases that blind so many people to scams.
The Sunk Cost Theory plays an initial, pivotal role in getting consumers to stick with schemes that look like blatant scams. Why do scammers always start with a $20 hook, then $200, then $2,000?
- Who Falls for Scams
- The Human Firmware Glitches
- How Scammers Use the Sunk Cost Theory Against Us
- How Low or High Tech Scammers Are
- Why Scammers Start by Asking for $20
- Sunk Cost Theory and Concert Tickets
- How Lottery Ticket Costs Relate to Sunk Cost Theory
- Sunk Cost Bias Leads to and Happens at the Same Time as Motivated Cognition
- Host Recommendation: Don’t Answer Calls from Numbers You Don’t Recognize
