SCARS Institute’s Encyclopedia of Scams™ Published Continuously for 25 Years
Has Financial Fraud Become a Major Driver of Homelessness with Scam Victims?
♦ A SCARS Commentary by Dr. Tim McGuinness
We all know that addiction, job loss, and mental health issues ranked as the top three responses from experts on homelessness up to 2019. However, something new is being seen across the world, but especially in the United States.
That is Scam Victim Homelessness!
The average losses from cyber-enabled financial fraud are increasing to staggering proportions. It is now estimated that the average loss per victim is nearing $100,000 – in 2019 this was estimated to be $9,000 to $14,000 depending on whom you talked to (the FBI or the FTC.)
Our organization SCARS is now talking with one or more people a day who say they have lost everything, including their homes, and are facing homelessness.
Local police are not doing enough (or in many cases, anything) to help connect these victims with social services that can help them. This is just one of the things that drive Scam Victim Homelessness!
But what makes it worse is the apparent fact that well below 5% of these crimes are never reported to law enforcement (the SCARS Analytics estimate is only 1.2%.) this means they don’t qualify for many services because they are not technically a victim of a crime, since it was never reported.
We talk with people who have nowhere to turn. Unfortunately, our own organization (www.AgainstScams.org) is not able to offer financial assistance – we simply do not have the donors to help victims financially.
Transnational organized cyber-enabled crimes are destroying millions of lives a year. The people making a difference can only help a fraction of those in need, This is a crime wave like nothing the world has EVER SEEN! It affects EVERY resident of every country – directly or indirectly.
Yet as a society, we generally pretend it is not a big deal! It will never happen to me, and if it did I would get my money back. WRONG.
Most victims turn to their local police and walk away with no help. They are either not aware, or are too ashamed to ask their local social services for help. This is a crisis of victims’ legal rights and their human rights!
SCARS would like to form a working group to help explore how we can all do a better job in helping victims on the local level. If you are interested in joining with us on this, please let us know by email at contact@AgainstScams.org. Our goal is to identify resources worldwide that can help avoid Scam Victim Homelessness.
Victims Deserve Better!
Are You Homeless Or At Risk Of Scam Victim Homelessness?
There are many resources that can help when you are facing homelessness, but they can also help any scam victim in need of financial help.
These resources are all for the United States, but similar services are available in many countries. Please check to see what is available in your country!
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To Understand All Scams, Read This:
The SCARS Institute Relationship Scams Formula Checklist
This is the Formula that all Relationship Scams Follow
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U.S. & Canada Suicide Lifeline 988
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ARTICLE META
Important Information for New Scam Victims
- Please visit www.ScamVictimsSupport.org – a SCARS Website for New Scam Victims & Sextortion Victims
- Enroll in FREE SCARS Scam Survivor’s School now at www.SCARSeducation.org
- Please visit www.ScamPsychology.org – to more fully understand the psychological concepts involved in scams and scam victim recovery
If you are looking for local trauma counselors please visit counseling.AgainstScams.org or join SCARS for our counseling/therapy benefit: membership.AgainstScams.org
If you need to speak with someone now, you can dial 988 or find phone numbers for crisis hotlines all around the world here: www.opencounseling.com/suicide-hotlines
A Note About Labeling!
We often use the term ‘scam victim’ in our articles, but this is a convenience to help those searching for information in search engines like Google. It is just a convenience and has no deeper meaning. If you have come through such an experience, YOU are a Survivor! It was not your fault. You are not alone! Axios!
A Question of Trust
At the SCARS Institute, we invite you to do your own research on the topics we speak about and publish, Our team investigates the subject being discussed, especially when it comes to understanding the scam victims-survivors experience. You can do Google searches but in many cases, you will have to wade through scientific papers and studies. However, remember that biases and perspectives matter and influence the outcome. Regardless, we encourage you to explore these topics as thoroughly as you can for your own awareness.
Statement About Victim Blaming
SCARS Institute articles examine different aspects of the scam victim experience, as well as those who may have been secondary victims. This work focuses on understanding victimization through the science of victimology, including common psychological and behavioral responses. The purpose is to help victims and survivors understand why these crimes occurred, reduce shame and self-blame, strengthen recovery programs and victim opportunities, and lower the risk of future victimization.
At times, these discussions may sound uncomfortable, overwhelming, or may be mistaken for blame. They are not. Scam victims are never blamed. Our goal is to explain the mechanisms of deception and the human responses that scammers exploit, and the processes that occur after the scam ends, so victims can better understand what happened to them and why it felt convincing at the time, and what the path looks like going forward.
Articles that address the psychology, neurology, physiology, and other characteristics of scams and the victim experience recognize that all people share cognitive and emotional traits that can be manipulated under the right conditions. These characteristics are not flaws. They are normal human functions that criminals deliberately exploit. Victims typically have little awareness of these mechanisms while a scam is unfolding and a very limited ability to control them. Awareness often comes only after the harm has occurred.
By explaining these processes, these articles help victims make sense of their experiences, understand common post-scam reactions, and identify ways to protect themselves moving forward. This knowledge supports recovery by replacing confusion and self-blame with clarity, context, and self-compassion.
Additional educational material on these topics is available at ScamPsychology.org – ScamsNOW.com and other SCARS Institute websites.
Psychology Disclaimer:
All articles about psychology and the human brain on this website are for information & education only
The information provided in this article is intended for educational and self-help purposes only and should not be construed as a substitute for professional therapy or counseling.
While any self-help techniques outlined herein may be beneficial for scam victims seeking to recover from their experience and move towards recovery, it is important to consult with a qualified mental health professional before initiating any course of action. Each individual’s experience and needs are unique, and what works for one person may not be suitable for another.
Additionally, any approach may not be appropriate for individuals with certain pre-existing mental health conditions or trauma histories. It is advisable to seek guidance from a licensed therapist or counselor who can provide personalized support, guidance, and treatment tailored to your specific needs.
If you are experiencing significant distress or emotional difficulties related to a scam or other traumatic event, please consult your doctor or mental health provider for appropriate care and support.
Also read our SCARS Institute Statement about Professional Care for Scam Victims – click here to go to our ScamsNOW.com website.
Now in 2024 and 2025 the United States is experiencing a shortage of housing which makes this issue even more critical. But when you’ve lost your home, things like a computer or a cell phone have already been disposed of in many cases, especially the phone. Eliminating phone/internet service provides some available cash. That said most local libraries do provide a place where a person can access a computer and printer along with free internet. In this day when most people are experiencing living paycheck to paycheck or most seniors with only Social Security to depend on it is apparent that adequate income is a serious problem. Increased costs of healthcare add to this problem. Many are just one hospital stay from disaster.
Homelessness has reached epidemic levels overwhelming the system’s capability to properly respond to the needs. The huge assumption is a homeless person must have a phone, computer/tablet, a printer, internet connection and transportation (everything is now online). If a homeless person has access to all of this, they wouldn’t find themselves homeless in the first place. It’s a catch-22.