Fraud Pathology: Why Smart, Capable People Still Fall for Scams
From P$yFi | Psychological Finance by The Redstone Rocket
April 2, 2026 · 35 min · Season 5 · Episode 7
About this episode
This episode explores the reasons why smart, capable people fall for scams, focusing on the sociopathology of financial predators and the demographics of scam victims.
We often assume older adults are the primary victims of fraud, scams, and financial manipulation. But the data tells a different story: nearly 84% of victims in relationship and confidence scams are middle-aged or younger . In this episode, Olivia breaks down the sociopathology behind financial predators—how they identify vulnerabilities, build trust, and ultimately exploit their prey. Drawing from the FBI, the Federal Trade Commission, and research published in the Journal of Cyberpsychology, Behavior, and Social Networking , she offers a second glance at who is at risk… and why. If this episode leaves you wanting more, join us at the 4th Annual Financial Symposium on April 7th . You’ll hear directly from Tom Manganello, Senior Counsel in the U.S. Securities & Exchange Commission’s Office of Investor Education and Assistance . With a decade spent investigating cases for the SEC’s Division of Enforcement, Tom will break down today’s most dangerous investment scams—imposter scams, Ponzi and pyramid schemes, military-targeted fraud, and the surge in relationship-based investment scams—and give you practical tools to build immunity using free resources from Investor.gov . You…
People in this episode
Host: Olivia
Guest: Tom Manganello
Topics covered
- fraud
- scams
- financial manipulation
- sociopathology
- investment scams
- vulnerabilities
- trust building
Keywords
- fraud
- scams
- financial predators
- investment scams
- middle-aged victims
- trust exploitation
- FBI
- FTC
- financial symposium
Mentioned in this episode
Organizations: FBI, Federal Trade Commission, Journal of Cyberpsychology, Behavior, and Social Networking, U.S. Securities & Exchange Commission
Places: Redstone Arsenal
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