Expert Witness Journal Dec 24 - Journal - Page 33
Emotional Bankruptcy:
How Fraud Victims Lose
More Than Just Their Money
by Daniel Sibthorpe, Senior Manager, Forensic Services, Crowe UK
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.
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.
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.
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 incident, a victim’s perspective of the
world can be shaken, becoming more suspicious of
others, including those who were not even involved.
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.
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.
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
Emotional bankruptcy: the silent cost
The term ‘emotional bankruptcy’ refers to the
physical and emotional burnout that exists as a result
EXPERT WITNESS JOURNAL
31
DECEMBER 2024
