The Psychological Effects of Being Scammed | How Fraud Impacts Mental Health
Being the victim of a scam can have devastating consequences. At Refundee, we speak with scam victims every day and see first hand the emotional and financial damage that fraud can cause.
According to UK Finance, over £600 million was lost to fraud in the first half of 2025. While these figures highlight the financial scale of fraud, they do not fully reflect the psychological effects that scams can have on victims.
In this article, we explore the emotional impact of scams, why fraudsters deliberately target vulnerable individuals, and the steps you can take to protect yourself and recover after fraud.
Mental Health Awareness Week and Scam Victims
As it is Mental Health Awareness Week at the time of writing, we believe it is important to highlight that the impact of fraud goes far beyond money.
Discovering that you have been scammed can be overwhelming. Alongside financial loss, many victims experience stress, anxiety, shame, anger, and a loss of trust in others. For many people, these emotional effects can continue long after the scam itself has ended.
Unfortunately, many victims are unprepared for the psychological impact of fraud and often suffer in silence.
The Emotional Effects of Being Scammed:
Through speaking with countless victims, Refundee has supported individuals during some of the most difficult moments of their lives. In many cases, our team are the first people victims speak to after discovering they have been scammed.
One of the most common emotions victims experience is embarrassment or shame. Many people feel guilty for trusting the scammer or believe they “should have known better”.
However, this is exactly how modern scammers operate.
Fraudsters are highly experienced criminals who exploit human psychology for financial gain. Their methods are designed to manipulate emotions, create false trust, and pressure victims into making quick decisions. Scammers do this every day, and their tactics are designed to deceive intelligent, careful, and ordinary people. Anyone can become a victim.
Many victims experience feelings of anxiety, stress, anger, embarrassment, or depression after discovering they have been deceived. Some lose confidence in themselves, while others struggle to trust friends, family members, financial institutions, or online platforms again.
In more serious cases, victims report sleep problems, panic attacks, social withdrawal, ongoing mental health difficulties, and suicidal thoughts caused by the trauma of the experience.
This type of fraud is commonly known as an Authorised Push Payment (APP) scam, where victims are manipulated into willingly transferring funds to criminals.
The effects of this type of fraud can be severe and long-lasting, but victims need to remember that what happened is not their fault and they are not alone.
Unfortunately, once someone has been targeted, they are more likely to be targeted again. Criminals frequently share victim details between organised fraud networks, increasing the risk of further scam calls, emails, or messages in the future. This can leave victims feeling constantly anxious or fearful that it may happen again. You can read more about how recovery scams work through our blog on our website.
Scammers deliberately prey on vulnerable individuals and exploit emotional distress for financial gain. This is why raising awareness around fraud and its psychological effects is so important.
Although the experience can feel isolating, victims should remember that support is available. Thousands of people across the UK fall victim to scams every year, and some organisations and professionals can help with both the financial and emotional effects of fraud.
As scam-related mental health issues continue to rise, encouraging open conversations around fraud has never been more important. Protecting your mental well-being after a scam is just as important as protecting your finances.
Why Vulnerable Individuals Are Often Targeted
Fraudsters often target vulnerable individuals because they believe they are easier to manipulate.
This can include:
Elderly individuals
People experiencing loneliness or isolation
Individuals under financial pressure
Those dealing with grief, stress, or mental health challenges
People searching for employment or investment opportunities
People with lower levels of English proficiency
Scammers carefully study human behaviour and exploit emotions such as fear, urgency, excitement, and trust.
This is why scam awareness and education are so important in tackling fraud on a global scale.
What To Do If You Have Been Scammed
Cut All Contact With the Scammer
Do not continue communicating with the scammer. Fraudsters are trained manipulators, and ongoing contact can lead to further emotional distress or additional financial losses. Block all communication channels immediately.
Report the Fraud
In the UK, scams can be reported to Report Fraud, the national reporting centre for fraud and cybercrime. Reporting the incident can help authorities track scam activity and provide guidance on next steps.
Talk to Someone
Many victims isolate themselves after being scammed because they feel ashamed or embarrassed. Talking to someone, whether a friend, family member, or professional, can help reduce stress and emotional pressure.
Be wary of Recovery Scammers
At Refundee, we commonly see fraudsters target the same victims again, claiming they can recover their funds for a fee. This is most definitely a scam, and you can read more about how to spot a recovery scam on our blog about recovery scams.
Seek Expert Support
At Refundee, our fraud specialists have helped thousands of scam victims understand their options and navigate the next steps after fraud. Speaking to experts who understand scams can provide reassurance, clarity, and practical guidance during a difficult time.
Contact Professional Support Services
Mental health charities and support organisations can also help victims cope with the emotional impact of fraud.
Some useful organisations include:
Samaritans: https://www.samaritans.org/
SHOUT:https://giveusashout.org/
CALM (suicide prevention):https://www.thecalmzone.net/
Rethink Mental Illness:https://www.rethink.org/
SANE: https://www.sane.org.uk/
Victim Support:https://www.victimsupport.org.uk/
NHS Therapy Self Referral:https://www.nhs.uk/nhs-services/mental-health-services/where-to-get-urgent-help-for-mental-health/
Turn2Us:https://www.turn2us.org.uk/
Step Change:https://www.stepchange.org/
Money Advice Trust / National Debtline:https://www.nationaldebtline.org/ Phone: 0808 808 4000
There Is No Shame in Being Scammed
Being scammed is not a reflection of intelligence or weakness.
Fraudsters are professional criminals who use sophisticated psychological tactics to manipulate victims.
Talking about scams, reporting fraud, and raising awareness are all important steps in reducing the stigma surrounding scam victimisation and helping others stay protected.
Remember, you are not alone and being the victim of a scam is nothing to be ashamed of - talking about it and taking the right steps will help you in recovering.
Raising Awareness and Protecting Victims
At Refundee, we continuously monitor the latest fraud trends and scam tactics so we can help spread awareness and support victims.
Education remains one of the strongest tools in preventing fraud. By understanding how scammers operate and recognising the emotional impact scams can have, individuals are better equipped to protect themselves and others.
If you or someone you know has been affected by fraud, remember: support is available, and recovery starts with taking the first step.
Want to Talk to Us?
If you have been scammed and want to talk to us about it, then you can complete our online claim form for a free assessment to see if we can help you recover your funds.
Refundee has recovered over £130 million for scam victims and is authorised and regulated by the FCA (FRN: 937096). You can read more about our clients’ experiences on our verified TrustPilot reviews.
More about Refundee
Here are the technical bits:
Refundee Ltd is a claims management company authorised and regulated by the Financial Conduct Authority in respect of regulated claims management activity FRN: 937096.
Registered with the Information Commissioner's Office; registration number: A8986071.
Registered office address: Refundee, 3rd Floor, 86-90 Paul Street, London, EC2A 4NE.
Registered as a company in England & Wales; number: 12855931.
Frequently Asked Questions (FAQs)
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Yes. Being scammed can have a serious impact on mental health. Many victims experience anxiety, stress, depression, embarrassment, loss of confidence, and difficulty trusting others after discovering they have been deceived.
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Many victims blame themselves after being scammed and believe they “should have known better”. However, scammers are highly skilled manipulators who use psychological tactics designed to exploit emotions such as fear, urgency, trust, and vulnerability.
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The emotional effects of fraud can include:
Anxiety and stress
Shame or embarrassment
Panic attacks
Sleep problems
Social withdrawal
Depression
Fear of being targeted again
Loss of trust in people or financial institutions
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An Authorised Push Payment (APP) scam occurs when a victim is manipulated into willingly transferring money to a fraudster. These scams often involve impersonation tactics, fake investment opportunities, romance scams, or urgent payment requests.
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If you have been scammed, you should:
Stop all contact with the scammer
Report the fraud to the relevant authorities
Contact your bank immediately
Speak to someone you trust
Seek emotional and professional support
