Why do victims initially receive small profits before losing more?

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Initial Profits Lure Victims into Larger Losses in Investment Scams

Victims are often enticed into larger financial losses by initial, small profits offered by fraudulent investment schemes. This tactic is employed to build trust and exploit the victim's desire for financial gain before the scam culminates in the loss of substantial amounts. The engineer in Kemaman, for instance, was drawn into a scheme advertised on Facebook, which promised lucrative returns through a Chinese company's app.
The Psychology of Baiting in Scams

Scammers frequently use a "baiting" strategy, which involves providing a small initial return on investment to create a false sense of legitimacy and profitability. In this particular case, the engineer initially invested a small sum and received a profit of RM600. This immediate positive reinforcement can significantly influence a person's decision-making, making them more susceptible to believing the scheme is genuine and encouraging them to invest larger amounts, as seen when the victim subsequently invested RM71,000.
The Role of Social Media and Deceptive Platforms

Social media platforms like Facebook have become a common conduit for such scams, providing a wide reach for fraudulent advertisements. The scheme in question was advertised on Facebook, and a specific app was used for the investment transactions. This digital environment can obscure the true nature of the operation, making it difficult for potential victims to verify the authenticity of the company or the investment's legitimacy before committing significant funds.
Common Modus Operandi of Investment Scams

Investment scams often operate by presenting themselves as legitimate opportunities, frequently linked to overseas entities, such as the company from China mentioned. They typically promise unrealistically high returns with little to no risk. When victims attempt to withdraw their funds or claim their promised profits, they are often met with further excuses, requests for more money to "release" the funds, or simply find the perpetrators have disappeared, leaving them unable to contact the suspects or recover their money.

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Why do victims initially receive small profits before losing more?

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