Financial Serial Killers
Inside the World of Wall Street Money Hustlers, Swindlers, and Con Men
Tom Ajamie and Bruce Kelly
There are many reasons why we fall for investment scams or make investment mistakes. We have to appreciate that we are human and our psychology can lead us to make the wrong investment decisions. As we understand and realize these factors, we are less likely to fall prey to the financial serial killer.
Dr. Robert Cialdini was Regents’ Professor of Psychology and Marketing at Arizona State University. He has received the Scientific Achievement Award of the Society for Consumer Psychology, the Donald T. Campbell Award for Distinguished Contributions to Social Psychology, and the Peitho Award for Distinguished Contributions to the Science of Social Influence.
Cialdini says that the root cause of people falling victim to a financial fraud is their uncertainty about the details of the financial environment. When people feel uncertain about any decision, including financial ones, they frequently fail to look to themselves for answers as to what they should do, because they lack so much confidence and feel so uncertain. So they look outside themselves, and this sets them up for the fraud.