Psychological / Social Engineering Technique

Sunk Cost Fallacy

Last updated:

Sep 29, 2026

Overview

The scammer concocts a scenario where the victim will lose everything they've earned so far if they don't keep going with the scam. The scammer makes claims such as, "you've already invested so much, and if you quit now, you'll lose it all".

Common in investment scams such as the 1.3.1 Cryptocurrency Investment Scam.

Why are we likely to continue with an investment even if it would be rational to give it up?, The Decision Lab
Scams and the Role of Sunk Cost Theory, MoneyFit
The Sunk Cost Fallacy: The bias that can get you scammed, Resolver
Sunk cost, Wikipedia

Sunk Cost Fallacy

Overview

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