Scams and the Role of Sunk Cost Theory

Episode 1

Scams and the Role of Sunk Cost Theory

Guest: Dale Dixon of the BBB

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 such blatant scams. Why do scammers always start with a $20 hook, then $200, then $2,000?

1. Who Falls for Scams
2. The Human Firmware Glitches
3. How Scammers Use the Sunk Cost Theory against Us
4. How Low or High Tech Scammers Are
5. Why Scammers Start by Asking for $20
6. Sunk Cost Theory and Concert Tickets
7. How Lottery Ticket Costs Relate to Sunk Cost Theory
8. Sunk Cost Bias Leads to and Happens at the Same Time as Motivated Cognition
9. Host Recommendation: Don’t Answer Calls from Numbers You Don’t Recognize

Connect with the guest, Dale Dixon:

Dale Dixon on LinkedIn

Better Business Bureau Great West + Pacific

Subscribe to the Money Fit Show Today! We're at moneyfit.org/podcast

We would appreciate it if you would click the star or thumbs up to give us a like for today’s episode.

Connect with the Money Fit Show:

Twitter: @MoneyFitbyDRS

Facebook: MoneyFitbyDRS

Email: [email protected]