Episode Transcript
[00:00:00] Speaker A: 10 outlook. This conversation on 702 is brought to you by Capitec. Slam the scam with Capitec. In fact, it's a conversation we've been bringing to you over the last couple of weeks because it just underscores how crazy the scammers have been and we want you to be extra, extra careful out there. Scammers have exploited predictable human behavior for actually centuries. Trust, fear, urgency and hope. But unlike in the past, their digital era now enables them to do so faster, more sophistically and at scale. What was once, you know, it required face to face persuasion can now happen anonymously, instantly and with precise targeting, thanks to social manipulation, data breaches and modern communication channels. So as technology evolves, scammers actually adapt their tactics, combining centuries old emotional manipulation with new digital tools to deceive them, to deceive even the most vigilant people. But Capitech is, is stepping in to help. So today we're joined once again by Nick Harris, who is the head of financial crime at Capitech, and Jean Roso, who's the head of CSI and financial education at Capitech, to chat about how you can stay Safe here on 702. Nick and a gene, once again, thank you so much for making time for us. Good morning. And I'll start.
[00:01:18] Speaker B: Good morning.
[00:01:18] Speaker A: Yeah, good morning. Thank you for coming back. Nick, which human behaviors do scammers use usually exploit?
[00:01:27] Speaker B: Yeah, so thanks for the question. I think, you know, scammers really succeed because they exploit, like you said, predictable human behavior. And, and generally it's not because people are careless or uneducated, but you know, every scam is, is tailored around very specific, specific emotional triggers. So the first one really, and it's the most important one, is the sense of urgency. So when you feel rushed, right, you stop thinking critically and you go into that survival reptilian brain.
The second one is the fear of loss and loss aversion. And people react faster to the possibility of losing something than the chance of gaining something. There's also authority bias, so people automatically trust them. And if they sound like they're in charge or in the position of authority, or acting in official capacity, like a lot of the saps, impersonation scams, scarcity and competition are especially exploited in so called online market scams. So that fear or FOMO of missing out, convenience and habit. We're used to receiving, for example, messages from courier services saying our parcel is ready for delivery, so why shouldn't we click on that link when it comes into our mailbox right.
This hopeful financial improvement. Rewards and social proof. Guaranteed returns, Fake testimonials and photos of, you know, everybody. I succeeded on TikTok. You know, surely this investment is for me. Helplessness. Helplessness and empathy. You know, sometimes people are really good at in being inherently good and reciprocal by nature. So scammers, look at this. They pretend to you, a friend or family on WhatsApp and pretend to your new best friend on social media. And then there's this excitement in these pulse behavior that they like as well. So people react quickly when they think they've won something. And these are really emotional shortcuts built into all of us. And scammers know exactly how to activate them.
[00:03:03] Speaker A: Yeah. So Gene, given these behaviors, it sounds, you know, as if anyone can become a victim. Why does psychological manipulation make, you know, even digitally and financially experience people so vulnerable?
[00:03:18] Speaker C: Yeah, I think we just heard that scammers do not target your intelligence, they target your emotions. So all people experience fear, urgency, trust or excitement. And when these emotions are triggered, your brain switches to fast instinctive decision making. So scammers then also strike when you are distracted, busy with work or your children, school runs, late night messages. Timing is then part of that psychology.
So we see clear patterns. People fall for investment scams because ambition and confidence bias make opportunities look legitimate.
Young adults fall for online marketplace scams because scarcity and competition feel normal in these digital spaces. Parents fall for courier scams because convenience matters to them. Parcels must be delivered. Older people fall for authority based impersonation scams because institutional trust is strong among older people. And then all these examples show that victims respond to emotion, pressure and timing.
[00:04:20] Speaker A: Yeah. Can you explain, Nick, how different types of scams use these human behavior so that our listeners can recognize the patterns?
[00:04:29] Speaker B: Yeah, so absolutely. So the, the better you can understand these triggers, the more likely you're going to recognize it. So it's so important to understand the psychology behind it. So really online marketplace and scams that use the scarcity and competition and basically that's just going to trigger you to say, well there's a lot of people waiting for it. You need to pay this now to get this secured as PlayStation for 100 bucks. For example, bank personations guaranteeing fear that creates a sense of urgency that pretends be from the bank's fraud department or saps. And this fear of losing really lowers your, your guard and, and get you to, to really start playing along with the scam. Unfortunately, curious scams, that's convenience and habits. So it feels comfortable, it feels normal to Click that link. You always get it from Buffalo. Whoever's sending you the latest Timo Sheen Parcel Investment scams, you know they exploit multiple desires. Greedy is one of those, right? And and often they'll use social community, WhatsApp groups. You're going to see photo confirmations of payments. You people looking like they're making money and getting rich through this thing. Upfront scams, you know that's reward and people's helplessness. You know you're supposed to be approved for loan for example, you need that credit line and then suddenly you paying the thousand bucks into scammers pockets. And then lastly really these prizes, competition scams, that excitement and the impulsive behavior, you know you've won a claim now click here. And then unfortunately you're suddenly providing your credit card details to somebody sitting offshore.
[00:05:52] Speaker A: Yeah Jin. What practical steps can our listeners take to protect themselves?
[00:05:58] Speaker C: So the best protection is to take a moment. Because scammers rely on speed and emotion, a pause gives you your logical brain time to engage.
So we can look at a few golden rules that anyone can apply. The first one, take a pause when you feel pressure. Urgent or threatening messages are very often scams. And when you pause, the types of scams that it can help with include payment requests. So fake notifications, including SARS demands, for example courier or delivery fees. As Nick just pointed out, investment scams where words like last chance or limited space spaces build pressure and romance. Scams where a new friend on social media quickly can escalate to emergency money requests then verify independently is the second one. Always confirm the request using contact details you already trust, not links, not number in messages or contacts provided in a message, not even through caller ID apps. Scam types this can help counter includes impersonation scams where banks, government or employers and even schools can be impersonated. And also of course one that's also trending is business email compromises. So you get a email with invoice for payment and the payment details have been adjusted.
A third one is a treat request for secret as a red flag. If you're asked to keep it confidential or tell no one or handle it discreetly, stop immediately. And this works specifically for scams like Roman scams, investment scams, family and distress scams, or then even CEO impersonation, which we also see question scarcity, especially online. If a seller who says many buyers are waiting or there's only one left, you should clearly see that as a red flag and then finally accept that guaranteed investment returns are fake. If an investment promises fast, guaranteed or risk free returns. Do not invest.
Take your time to ask critical questions. And this works because there's no legitimate investment without risk. Guaranteed returns usually mean the risk is hidden or that your money is being used to pay others.
So, in summary, if you pause for verify independently and trust your instincts, you make it very difficult for scammers to manipulate you. And I think one last thing to mention, just for pensioners and older individuals, have that one trusted family member that you can contact when you feel pressurised or someone is asking you to do something urgently.
Take that moment, pause, hang up the phone and contact your family member and discuss that. Do not act instinctively and urgently.
[00:08:57] Speaker A: Yes, please. Nick Harris and Jean Rousseau from Capitech, thank you so much for joining us and for providing these valuable tools to protect our listeners from getting exploited. It's ten o' clock.
