Why the victim blaming in fraud offences needs to stop

Despite advances in the research behind fraud victimhood, a “victim blaming narrative” prevails across politics and business and is impeding fraud prevention, according to Professor Cassandra Cross from QUT.

Cassandra – a speaker at Credit Law 2026 - says that, while many authorities now recognise fraud can happen to anyone, the psychology of deception is not fully understood.

As a result, users of financial services are largely expected to defend themselves against fraud offences, even though impending changes to the Scam Prevention Framework will transfer more accountability to banks.

“Fraud is a unique crime in that victims actively participate in their own victimisation, for example, by authorising transfers or sharing personal information,” Cassandra said. “However, victims are only acting in accordance with a fabricated narrative they believe to be true, and the deception involved in creating that narrative is often underestimated.”

Because of this, Cassandra claims there is a misconception that fraud only happens to certain types of people.

“There are stereotypes that victims are gullible, greedy or uneducated, which we know from research is not true. In reality, anyone can become a fraud victim, no matter their intellect or character,” she added.

While demographic risk factors exist, Cassandra said the link is better explained by “financial attractiveness”, rather than deceivability.

“For example, we know that older people are often targeted by fraudsters, but this is likely because they have access to superannuation, savings, and good credit.

“Younger people are less likely to experience certain types of scams, because many are still paying off their mortgage or student loan and tend to be in a less favourable financial position, meaning there are fewer resources to exploit.”

Scam techniques are more sophisticated

Young or older, Cassandra says self-protection is challenging in a fraud context, with the landscape a “moving target” and warning signs increasingly difficult to spot.

Previously, these warnings signs included spelling and grammar errors or reverse-image searchable photos.

Now, through artificial intelligence (AI), offenders can create entire fake websites and original images or videos of people who do not exist.

“Seeing isn’t believing anymore,” Cassandra said. “We have seen cases of employment fraud where victims have been invited into Teams meetings which are entirely fabricated with fake participants. The victim, who is the only real person present, is then asked to make a financial transaction during the meeting. That is the level of deception people are now up against.”

A newer trend called romance baiting combines romance fraud and investment fraud.

Here, cryptocurrency and other investment opportunities are offered within the context of a fake romantic relationship.

“This is tricky because it circumvents traditional warnings about sending money to strangers or using wire transfer services,” Cassandra said. “We are seeing younger people, typically in their twenties and thirties, drawn into this type of scam.”

Manipulation techniques are more sophisticated

Cassandra, who has spent years analysing victim-offender communication transcripts, says fraudsters now also use sophisticated psychological tactics to manipulate victims.

“They use grooming techniques, social engineering, and coercive control to deceive and manipulate people into compliance. They ask deliberate questions to learn about the victim’s weaknesses and build empathy and connection. Because of this, the trust and rapport between victim and offender can be very difficult to break,” she said.

In romance fraud, offenders target people in vulnerable chapters of life, such as those navigating divorce. There is usually an attempt to create secrecy in the relationship and any investments made within it.

“This isolates victims from support networks that might otherwise challenge the legitimacy of it,” Cassandra said.

Some offenders also exploit time zone differences to bombard their targets with messages throughout the night and deprive them of sleep, impairing their decision making.

“They might position themselves as the first and last person a victim communicates with each day, mimicking real relationship dynamics” Cassandra added.

Hyperpersonal model

Cassandra says offenders recognise and exploit patterns in human behaviour, while the person exhibiting the behaviour can be oblivious.

Among these is the hyperpersonal model – a phenomenon in which people are more willing to disclose sensitive personal information online.

“Research has shown that people can be much more open when communicating via text or on social media than when talking to people face to face. Fraudsters know this and often get people chatting on dating apps or in private message threads online.

“They then exploit the information that is given to them – perhaps using it to create a fake profile or bank account.”

Non-financial harm can occur

Cassandra claims the effects of these scams extend beyond the financial realm.

She says victims are at risk of serious mental health conditions and even suicide in the aftermath of a scam.

“We tend to see a decline in people’s physical health, significant emotional distress and depression. People’s relationships can break down, and they may wind up homeless or unemployed. The fallout can be very serious.”

Secondary trauma can also occur when victims have negative experiences in their dealings with financial service providers.

“When reporting fraud to police or banks, victims’ experiences are often trivialised or minimised and this can add to the distress they are already experiencing,” she warned.

Invisibility of offenders versus visibility of victims

Aside from misconceptions about victim Psychology, Cassandra says there is another reason blame tends to fall on victims’ shoulders.

She says many offenders remain anonymous and invisible, while victims are left in the spotlight.

“This is a phenomenon, whereby the visibility of the victim plays a role in them absorbing the blame. If the offender had a name and a face it would be easier to place the blame on them.”

A shift in accountability

While Cassandra notes a shift in thinking, with financial service providers now expected to be more proactive in scam prevention, she says greater awareness of victim experience is needed.

Sharing more of her expertise in this space, Cassandra will present at the upcoming Credit Law Conference, hosted by Informa.

This year’s event will be held 28-29 October at the Crown Plaza Surfer’s Paradise.

Learn more and register your tickets here.