Featured Cyber Tips

The Silent Toll of Cyber Scams: Ending Victim Shaming and Supporting Recovery

Cyber scams cause emotional distress and shame on victims and go beyond losing money. Learn how to recover and report cyber scams.

Cyber scams are a growing epidemic – and they’ve never been more pervasive.

Four in 10 people worldwide receive digital scam attempts on a weekly basis – the majority happens over email (54%), text messages, social media postings, phone calls and Instant Messaging (IMs). A third say they get more scam attempts now than they did just 12 months ago.

In 2023 alone, romance scammers stole $1.14 billion from Americans, with victims losing a median of $2,000 each, while Canadians lost over $50 million to such scams the same year. It’s not just older generations falling prey – Deloitte research reveals younger generations fall for online scams far more frequently than their grandparents do.

Yet, the financial loss is only part of the story. The emotional toll – shame, embarrassment, and isolation – is often far worse, compounded by societal stigma.

The FBI’s Internet Crime Complaint Center (IC3) receives over 2400 complaints daily, but says many more cybercrimes go unreported. Similarly, while Canadians were expected to lose more than $569 million to scams in 2024, the Canadian Anti-Fraud Centre (CAFC) estimates only 5% – 10% of victims report instances of online fraud.

“That’s likely in part because the mental impact of cyber scams often lasts far longer than the financial damage,” explains Jack Brooks, Head of BOXX Insurance Hackbusters and vCISO. “Many victims are left feeling too embarrassed or ashamed to report the incident to the authorities, let along tell friends or family.”

What’s worse – for younger victims, particularly teens, cyber scams can take the form of extortion, sextortion, or cyberbullying. These crimes can have devastating mental health consequences, leading to severe anxiety, depression, and in some tragic cases, even self-harm.

To tackle this issue, we must change the narrative around victimhood, address stigma, and adopt proactive measures like cybersecurity tools and insurance to help mitigate risks and support recovery, Brooks says.

Why People Fall for Cyber Scams

Sophistication of Confidence Tricks in the Digital Age

Scammers have always preyed on human vulnerabilities, but the digital age has amplified their reach, sophistication, and scale.

“Romance scams, financial fraud, phishing and social engineering scams are now more prevalent, more frequent, and more dangerous,” Brooks says.

“Tools like Generative AI enable scammers to craft highly personalized and convincing messages. Emails that mimic a trusted colleague, even cloned voice recordings from a family member, can easily deceive even the most cautious individuals,” he says. “AI-crafted scams are like a Trojan horse. They look perfect on the surface but are built to fool even the savviest person. With AI tools readily accessible, scammers can target victims with alarming precision, increasing the risk for everyone.”

Human Psychology at Play

Scammers exploit universal emotional triggers like urgency, fear and pressure. “Romance scams, for example, manipulate victims over a period of time to create a false sense of trust and dependency, and then prey on that trust to convince the victim to act impulsively at a certain point along in the scam – like getting them to transfer money – sometimes even multiple times, tricking people out of their life savings.”

Once someone realizes they’ve been scammed, they see all the warning signs in hindsight,” Brooks adds. “It’s easy to feel foolish, but these scammers have become experts at making things look and feel legitimate in the moment.”

The majority of scams succeeding due to human error, rather than failed technological or cybersecurity measures. Cybercriminals know this. That’s why they’ll continue to target people in various ways, and make these scams as convincing and personal as possible. “It can happen to literally anyone.”

Breaking the Stigma of Being Scammed Online: Debunking Myths

Myth: “At least you didn’t lose money”

Truth: Often, the emotional toll of being scammed is overlooked – and far outweighs the financial loss.

In 2024, victims said they were most affected by the loss of time (36%), money (25%) and the amount of stress and concern (22%) caused by cyber scams.

Research has proven that feelings of shame, humiliation, embarrassment and anxiety can have long-lasting effects on mental health – they can lead to anxiety, depression, post-traumatic stress disorder, and even physical health problems.

It’s important to encourage victims of digital scams to get professional help, from a registered psychologist or therapist, just as society would advise a victim of trauma.

Myth: “You should’ve seen it coming”

Truth: The emotional trauma of cyber scams are compounded by the societal judgement victims often face – sometimes even from their family and closest friends.

Phrases like “You should have known better” only reinforces feelings of embarrassment and guilt.

“These reactions make it harder for victims to come forward, allowing scams to persist unchecked,” Brooks says.

The truth is, cyber scams pose a very real threat, and society needs to change the narrative, emphasizes Neal Jardine, BOXX’s Global Director of Cyber Risk Intelligence:

“Cybercrime is unprecedented, and evolving at a rate that’s difficult to stay on top of. As a society, we need to keep pace with its evolving nature, and treat these types of cybercrimes as serious as any other type of crime. Given the amount of time we spend online these days, our digital safety is just as important to protect as our physical safety,” Jardine says. “We wouldn’t blame someone if their house gets broken into, and we wouldn’t shame someone who has been bullied. Just as our societal outlook has changed to support these victims, we shouldn’t blame or shame a victim of a cyber scam.”

Myth: “It’s an old-person problem”

Truth: It’s a common misconception that cyber scams primarily target older generations.

Ipsos data shows that Gen Z and Millennials are often at greater risk due to risky digital habits like oversharing on social media, reusing passwords, and frequent online activities such as gaming and shopping. Another study shows younger generations reported higher rates of victimization in phishing, identity theft, romance scams, and cyberbullying. And, a Deloitte survey shows that Gen Z were three times more likely to get caught up in an online scam, and twice as likely to have their social media hacked, than boomers were.

“Younger people often feel more tech-savvy, which can lead to overconfidence online, leaving them more susceptible to clicking on links or downloading files without verifying their legitimacy,” Brooks says.

The FBI has recently warned that minors and youth are increasingly being targeted by sextortion and other cybercrimes including cyberbullying and extortion, where scammers prey particularly on children’s vulnerability, fear and shame.

“No one is immune to scams, and awareness is the first step toward protecting yourself and your loved ones. Steps like enabling multi-factor authentication and being cautious about oversharing can significantly reduce the risk.”

Proactive Steps to Protect Yourself: How Cybersecurity and Insurance Help 

Implement Cybersecurity

Research shows more people than ever are worried about their online safety, yet the majority (54%) admit they have no idea whether their digital devices are secure or not.

Practical measures can significantly reduce the risk of falling victim to cyber scams:

  • Secure your devices: Enable Multi-Factor Authentication (MFA) (like Google Authenticator) and use a Virtual Private Network (VPN) to add an extra layer of protection. Use strong passwords and password tools like 1Password. Go beyond antivirus for comprehensive cybersecurity solutions that include phishing safeguards.
  • Verify senders and transactions: Always double-check emails, phone calls, and financial requests before acting.
  • Be cautious of urgent requests: Scammers often use fake emergencies and a sense of urgency to manipulate victims.

Invest in Cyber Insurance 

A comprehensive cybersecurity and cyber insurance policy offers both a critical financial safety net, and professional services and support when you need it most. Look for an insurance policy that offers:

  • Coverage for recovery costs: Including stolen funds, identity restoration, cyberbullying, extortion and more.
  • Expert guidance: Access to cybersecurity professionals like BOXX Hackbusters, who can assist in mitigating damage, predicting threats, preventing breaches and containing cyber incidents – helping you to recover faster and reducing the long-lasting impacts of digital scams.

This was the case for entrepreneur Bekka Fraser (name changed), who managed to regain control of her finances and emotional well-being after being scammed by someone posing as a Middle-Eastern royal. Initially embarrassed and ashamed, Bekka relied on the support from her family, therapist, and the BOXX Hackbusters team to move past the ordeal.

Empowering Victims and Preventing Cyber Scams

Cyber scams are a universal threat. While financial harm is significant, the emotional toll often lingers longer and causes lasting damage. Recognizing that scams can happen to anyone is the first step in reducing stigma and encouraging reporting.

To effectively combat cyber scams, everyone can help to shift societal attitudes, by normalizing reporting scams and encouraging judgment-free support from friends and family.

“See something, say something,” Brooks emphasizes. “Know that we’re here to help. It’s not just about protecting yourself – it’s about helping others avoid the same fate.” For victims: seek help, report the scam, and invest in cybersecurity and insurance to protect yourself.

For everyone: Share resources, stop victim shaming and support those affected.

Together, we can build a safer, more empathetic digital world.

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