Emotional bankruptcy

When we think of fraud, we often focus on the financial losses, such as empty bank accounts, misdirected funds, bogus suppliers and mounting debt. While these are devastating outcomes, they represent just one aspect of the harm caused by fraudulent acts. What often receives less focus is the emotional impact that victims experience. Fraud doesn’t just steal your money; it leaves you feeling vulnerable, exploited and leaves lasting emotional damage that can last for years after the incident occurred.

Why is fraud so ‘successful’?

Despite increased awareness and security measures in recent years, fraud remains one of the most prevalent and effective methods of crime as it preys on the ‘weak points’ of being human; that we ultimately trust, care and build relationships with one another. Fraud seeks to actively exploit these key fundamentals of what it means to be human, which is why its impact can be so catastrophic. It is covert in nature and is facilitated via deceitful behaviour, meaning anyone can fall victim to a scam, regardless of age, education or intelligence.

Often, there is a more intense focus and interest around how fraudsters perpetrate crime, as opposed to the impact on its victims. We need to ensure that those victims do not become just another statistic in the fight against this epidemic of fraud and cybercrime in modern society.

Emotional bankruptcy: the silent cost

The term ‘emotional bankruptcy’ refers to the physical and emotional burnout that exists as a result of an incident, or in this case, fraud. They may feel drained, unable to gather the energy or optimism to move forward with their lives. It’s not just about the loss of money; it’s about the loss of a sense of control over one’s life. Victims often report feeling helpless, as though they are no longer in charge of their own destiny. It's important that we look beyond just the financial implications and the ‘numerical’ aspect of fraud. Ultimately, there is always a human being who is impacted by the incident.

The shock of the initial betrayal

For many victims, the realisation that they’ve been defrauded is met with shock and disbelief. Fraud often involves deception by someone who has gained their trust, whether it’s a scam artist posing as a legitimate business, a seemingly well-meaning stranger, or even a family member or friend. The shock of the betrayal and deception can trigger a series of deep emotions, from confusion and denial to intense anger.

As a result of the shock, victims may find their entire worldview shaken, becoming suspicious of others, including people who had nothing to do with the incident. The emotional response isn’t just a reaction to the loss of money, it’s a response to the realisation that someone took advantage of their goodwill or perceived vulnerability.

The loss of trust in others

Fraud doesn’t just rob its victims of money; it often destroys their sense of trust in others. This can have far reaching effects on personal relationships. When the perpetrator is someone close – a family member, partner, or friend – the betrayal can hurt even more. The victim is left not only with a financial loss but also with a shattered relationship which may never fully heal.

Even when the fraudster is a stranger, the experience can make victims wary of others. They may become overly cautious and doubt the intentions of people that they once trusted. This can strain personal relationships, making it difficult for victims to reconnect with loved ones or form new, meaningful connections. The fear of being taken advantage of again can leave victims isolated and alone in their suffering.

The cycle of shame and self-blame

One of the most common yet least talked about consequences of fraud is the sense of shame that many victims feel. Despite being deceived through no fault of their own, victims often internalise the blame, believing they were “stupid” or “naive” to have fallen for the scam, particularly when those close to them make comments like “how could you fall for that?”. This self-blame can be crippling and particularly damaging to one’s self-esteem, leading to a cycle of negative thoughts.

Societal attitudes to those who experience fraud can often exacerbate this shame. There is a stigma attached to being defrauded, which fuelled by a belief that victims should have been more cautious or that they were somehow complicit in their own victimisation. This mentality prevents many victims from coming forward or seeking help, which they so often need. The psychological burden of shame and self-blame can have lasting impacts, contributing to symptoms of depression, anxiety and even post-traumatic stress disorder (PTSD).

If you are unfortunate enough to experience fraud, what should you do?