The Loss of Future Thinking in Scam Victims and How to Regain It through Recovery

Financial Loss and the Changes in Psychology in Scam Victims: Restricting Future Thinking

Primary Category: Scam Victim Recovery Psychology

Intended Audience: Scam Victims-Survivors / Family & Friends

Author:
•  Tim McGuinness, Ph.D. – Anthropologist, Scientist, Director of the Society of Citizens Against Relationship Scams Inc.
•  Based, in part, on the works of Dr. Jordan B. Peterson

About This Article

Scam victims who suffer major financial losses experience a drastic shift from future-oriented thinking to immediate survival mode, a phenomenon that Jordan B. Peterson and behavioral economists have examined in the context of financial insecurity. The loss of financial stability triggers chronic stress, impairing executive functions like planning and goal-setting, while also fostering a fixation on past mistakes and regrets.

Similar to individuals living in poverty, scam victims often experience cognitive narrowing, impulsive decision-making, and emotional distress that further restrict their ability to think long-term. However, recovery is possible through structured steps, including stabilizing immediate financial needs, addressing psychological trauma, and gradually reintroducing future-oriented thinking through small, achievable goals.

By rebuilding financial stability, seeking emotional support, and restoring trust in decision-making, victims can reclaim their sense of control, regain confidence in the future, and ultimately restore their ability to think beyond immediate survival.

Financial Loss and the Changes in Psychology in Scam Victims: Restricting Future Thinking

Jordan B. Peterson has discussed this concept related to financial loss or poverty on human beings in his lectures and writings, particularly in relation to hierarchical structures, cognitive capacity, and future planning. He argues that financial insecurity and chronic stress limit a person’s ability to think in long-term, future-oriented ways, forcing them to focus on immediate survival.

This is not only for those in situations of poverty but also for those who have had major financial losses such as scam victims.

Dr. Jordan B. Peterson’s View on Financial Loss/Poverty on Future Thinking

Peterson, drawing from behavioral economics, psychology, and neuroscience, suggests that people living in extreme financial distress are often unable to engage in abstract, future-oriented thinking because their cognitive resources are consumed by immediate survival needs. This idea aligns with research in cognitive science showing that scarcity—whether financial, social, or time-related—narrows mental bandwidth, reducing long-term planning and strategic thinking.

The Psychological Effects of

Survival Mode Thinking: When individuals are in a constant state of economic instability, their brains prioritize short-term problem-solving over long-term planning. This is because their mental energy is spent on handling immediate threats, such as food, rent, or medical emergencies.

Reduction in Executive Functioning: Executive functions like delayed gratification, planning, and goal-setting require cognitive resources, which are depleted when a person is under financial stress. This aligns with Maslow’s Hierarchy of Needs, where physiological and safety needs must be met before self-actualization (higher-order thinking) can occur.

Emotional and Cognitive Load: Chronic stress from financial insecurity raises cortisol levels, which impairs higher cognitive functions, making long-term goal-setting or abstract thinking more difficult.

Tense-Oriented Thinking: The Shift from Future to Present and Past

Peterson suggests that when financial stability is absent, a person’s thinking becomes restricted primarily to the past and present:

Past-Oriented Thinking: People may dwell on mistakes, regrets, or past injustices, as their ability to envision a different future is compromised.

Present-Oriented Thinking: The focus shifts to immediate needs and survival, leading to impulsivity and short-term decision-making.

Lack of Future-Oriented Thinking: Since security provides the stability required for planning, those without financial stability struggle to conceptualize and work toward a future.

Supporting Evidence in Economic Research

This idea aligns with the work of behavioral economists like Sendhil Mullainathan and Eldar Shafir, who wrote “Scarcity: Why Having Too Little Means So Much”. Their research shows that poverty creates a cognitive tunnel vision where people focus on pressing concerns at the cost of long-term decision-making.

Implications

Financial Stability Enhances Planning: Those who achieve economic security gain mental freedom to think about long-term goals, self-improvement, and legacy-building.

Breaking the Cycle of Poverty Requires Structural and Psychological Support: Interventions like financial literacy, mental health support, and stable employment can help people regain the cognitive bandwidth necessary to engage with the future.

Societal Consequences: Large groups of people stuck in survival mode struggle to contribute to innovation, entrepreneurship, or cultural development, reinforcing cycles of economic disparity.

Peterson’s insight highlights an important psychological and economic reality—financial security is not just about material wealth but also about freeing the mind to think beyond immediate survival. This idea has profound implications for policymaking, education, and social interventions aimed at breaking cycles of poverty and promoting forward-thinking mindsets.

Applying this Perspective to Scam Victims

we can apply this effect to scam victims who have lost their life savings, as they undergo a sudden and catastrophic transition from financial security to financial instability. This shift has profound psychological, cognitive, and emotional consequences, including trauma, changes in future-oriented thinking, and alterations in decision-making.

Psychological Trauma and the Loss of Future-Oriented Thinking

Scam victims who lose their life savings experience an abrupt and severe psychological shock. Before the scam, they may have been thinking in the future tense, planning for retirement, investments, or long-term goals. After losing their savings, they are often thrown into survival mode, similar to individuals living in chronic poverty.

Emotional Overwhelm and Stress Response: The brain reacts to financial devastation as it would to a life-threatening event, triggering the fight-or-flight response. Cortisol levels rise, leading to chronic stress, anxiety, and hypervigilance. In this state, higher cognitive functions like planning and problem-solving deteriorate.

Cognitive Narrowing: Just as Jordan Peterson describes for people in poverty, scam victims experience a narrowing of mental focus—their thinking is now dominated by immediate financial concerns (e.g., “How will I pay rent?” or “How will I afford food?”). This leaves little mental space for long-term goals or hope for recovery.

Loss of the Future Tense: Before the scam, the victim may have had a clear future vision. Now, the future seems uncertain or nonexistent, leading to paralysis, despair, or an inability to plan beyond the immediate crisis.

Depression, Regret, and Past-Oriented Thinking

Many scam victims fall into ruminative, past-focused thinking, mirroring the cognitive patterns of trauma survivors.

Self-Blame and Guilt: Victims may become obsessed with how they were deceived, replaying events repeatedly and blaming themselves. This fixation on past mistakes prevents forward movement.

Regret and “If Only” Thinking: Victims often dwell on counterfactual scenarios (“If only I hadn’t trusted them,” “If only I had double-checked”), which reinforces feelings of powerlessness.

Social Withdrawal and Loss of Trust: After a scam, victims may become deeply distrustful of others, further isolating themselves. This isolation compounds emotional distress and makes recovery harder.

Shift to Present-Oriented Survival Thinking

Like individuals struggling in chronic poverty, scam victims may shift to a short-term survival mindset, where they make financial and life decisions based on immediate needs rather than long-term planning.

Impulsive or Risky Financial Decisions: Some victims attempt to recover losses through risky investments, gambling, or desperate financial moves, hoping for an immediate fix.

Inability to Plan for Recovery: The trauma of financial loss shrinks cognitive bandwidth, making it difficult to take the practical steps needed to rebuild finances.

Job and Career Instability: If a victim was planning for retirement or a stable future, they may now be forced to return to work or change careers, causing a sense of identity loss and despair.

Long-Term Consequences on Identity and Motivation

Losing one’s life savings is not just about money—it can fundamentally change a person’s self-concept and worldview.

Loss of Meaning and Purpose: Many victims lose confidence in their ability to make good decisions, leading to learned helplessness, where they stop believing they can improve their situation.

Cynicism and Loss of Optimism: Future planning often relies on hope and optimism—scam victims may lose this entirely, feeling that they will never recover or that the world is fundamentally hostile.

Existential Crisis: For victims who tied their savings to life purpose (retirement, leaving wealth for children, or achieving a dream), the loss can feel like a loss of self.

Regaining the Ability to Think in the Future Tense

Rebuilding future-oriented thinking is crucial for scam victims to regain stability. This requires both psychological healing and practical financial restructuring.

Therapy and Emotional Support: Victims need trauma-informed counseling to process grief, rebuild self-worth, and shift away from past-oriented thinking.

Financial Rehabilitation: Guidance from financial planners or support organizations can help victims gradually regain control over their finances and start setting future goals again.

Restoring Trust and Social Connection: Reconnecting with supportive family, friends, or victim recovery groups can help rebuild confidence and counteract the isolation and distrust that follows fraud.

5 Steps to Aid in Recovery

Regaining the ability to think in the future tense after losing one’s life savings to a scam requires a structured, step-by-step approach that addresses both emotional trauma and financial recovery.

Here are concrete steps a scam victim can take to rebuild future-oriented thinking and reclaim their life:

Step 1: Stabilize the Immediate Crisis (Address Present Survival Needs)

Before future thinking can be restored, immediate survival concerns must be addressed to reduce stress and cognitive overload.

Assess Current Financial Situation – List all remaining assets, debts, and immediate financial obligations to get a clear picture of what remains.

Secure Basic Needs – Ensure there is enough money for rent, food, and essentials; if needed, seek family support, temporary assistance, or local aid programs.

Create a Minimal Budget – Even if finances are strained, mapping out a spending plan helps create stability and control.

Avoid Panic-Induced Decisions – Refrain from desperate attempts to recover losses (e.g., gambling, risky investments, taking out large loans).

Find Immediate Income Sources – If necessary, look for temporary work, freelancing, or part-time jobs to ensure short-term financial security.

By stabilizing the present, mental space is freed up to focus on long-term recovery.

Step 2: Process the Emotional and Psychological Impact

After financial security is stabilized, the emotional grief, shame, and trauma must be addressed.

Acknowledge the Loss Without Self-Blame – Remind yourself: “I was deceived, but that does not define my intelligence or worth.” Scammers are highly skilled manipulators.

Talk to Someone You Trust – Speak with a family member, friend, or professional to externalize emotions and prevent isolation.

Join a Scam Victim Support Group – Connecting with others who have gone through similar experiences can help restore confidence and provide recovery insights.

Seek Professional Therapy (if possible) – A trauma-informed counselor can help process shame, fear, and trust issues to shift focus toward the future.

Rebuild Trust in Decision-Making – Remind yourself that one mistake does not define your ability to make good choices moving forward.

By healing emotionally, it becomes easier to move past the past and start thinking ahead.

Step 3: Reintroduce Future Thinking in Small, Manageable Steps

Now that immediate needs and emotions are under control, future planning can begin in incremental ways.

Start with Short-Term Goals (30-90 Days) – Set small, achievable goals such as:

• • • • Saving $50 per week toward rebuilding finances.
      • Applying for five new jobs in the next month.
      • Learning about basic fraud prevention to regain confidence.

Create a Vision Board or Journal – Even if major dreams feel distant, writing down or visualizing a better future helps shift the mind toward optimism.

Develop New Financial Routines – Implement small financial habits such as:

• • • • Tracking spending weekly.
      • Setting aside small amounts in savings.
      • Learning about fraud prevention and investment safety.

Explore New Income-Building Skills – Take free or low-cost courses in high-demand skills (e.g., digital marketing, data entry, online sales) to increase financial security.

Reconnect with Old Goals or Passions – Identify past hobbies, skills, or dreams that were set aside and find ways to slowly reintroduce them.

By focusing on small future steps, victims start to regain a sense of agency over their lives.

Step 4: Develop a Mid-Term and Long-Term Financial Strategy

With short-term stability in place, structuring a long-term financial recovery plan is critical.

Meet with a Financial Advisor or Debt Counselor – If possible, consult an expert who can help develop a realistic, sustainable financial plan.

Set a 6-Month and 1-Year Recovery Plan – Define realistic financial milestones, such as:

• • • • Rebuilding an emergency fund of $1,000 within six months.
      • Finding a stable source of income within the next year.

Start Investing in Safe, Low-Risk Ways – Once financial stability returns, gradually explore smart, low-risk investment options to regain confidence.

Monitor Progress and Adjust as Needed – Set monthly financial check-ins to track progress and celebrate small wins.

Rebuild Confidence in the Future – With each step forward, acknowledge personal growth and resilience, reinforcing the belief that the future is still possible.

Step 5: Restore Long-Term Vision and Purpose

To fully restore future-oriented thinking, scam victims must reconnect with their larger life goals.

Reconnect with Life Aspirations Beyond Money – Identify non-financial aspirations, such as:

• • • • Building stronger relationships.
      • Contributing to a cause or charity.
      • Traveling or pursuing personal growth.

Engage in Self-Development and Learning – Take courses, read books, or attend workshops to expand knowledge and opportunities.

Mentor or Help Others Recovering from Fraud – Teaching others about scam awareness helps reclaim personal power and turns a negative experience into something meaningful.

Practice Gratitude for Small Improvements – Focusing on what is going well can shift the mindset from loss to growth.

Plan for Retirement Again – Even if financial loss was severe, rebuilding a secure future is still possible, one step at a time.

While scam victims may lose their sense of the future, they can gradually restore it by stabilizing the present, processing emotions, setting small goals, and rebuilding financial security. The key is to start small, be patient, and recognize personal resilience. By taking these structured steps, victims can reclaim hope, confidence, and a sense of purpose, ultimately proving that the future is still theirs to create.

Conclusion

When a scam victim loses their life savings, they experience a cognitive and emotional collapse similar to those in poverty or extreme financial distress. The shift from financial security to survival mode reduces their ability to think long-term, trapping them in past regrets and present fears. The trauma not only affects financial stability but also alters identity, trust, and future orientation. Recovery requires both emotional healing and financial restructuring, helping victims regain a sense of control, hope, and the ability to think in the future tense again.

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Important Information for New Scam Victims

• Please visit www.ScamVictimsSupport.org – a SCARS Website for New Scam Victims & Sextortion Victims
• SCARS Institute now offers a free recovery program 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 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

Some of our articles discuss various aspects of victims. This is both about better understanding victims (the science of victimology) and their behaviors and psychology. This helps us to educate victims/survivors about why these crimes happened and to not blame themselves, better develop recovery programs, and to help victims avoid scams in the future. At times this may sound like blaming the victim, but it does not blame scam victims, we are simply explaining the hows and whys of the experience victims have.

These articles, about the Psychology of Scams or Victim Psychology – meaning that all humans have psychological or cognitive characteristics in common that can either be exploited or work against us – help us all to understand the unique challenges victims face before, during, and after scams, fraud, or cybercrimes. These sometimes talk about some of the vulnerabilities the scammers exploit. Victims rarely have control of them or are even aware of them, until something like a scam happens and then they can learn how their mind works and how to overcome these mechanisms.

Articles like these help victims and others understand these processes and how to help prevent them from being exploited again or to help them recover more easily by understanding their post-scam behaviors. Learn more about the Psychology of Scams at www.ScamPsychology.org

SCARS Resources:

• Getting Started: ScamVictimsSupport.org
• FREE enrollment in the SCARS Institute training programs for scam victims SCARSeducation.org
• For New Victims of Relationship Scams newvictim.AgainstScams.org
• Subscribe to SCARS Newsletter newsletter.againstscams.org
• Sign up for SCARS professional support & recovery groups, visit support.AgainstScams.org
• Find competent trauma counselors or therapists, visit counseling.AgainstScams.org
• Become a SCARS Member and get free counseling benefits, visit membership.AgainstScams.org
• Report each and every crime, learn how to at reporting.AgainstScams.org
• Learn more about Scams & Scammers at RomanceScamsNOW.com and ScamsNOW.com
• Learn more about the Psychology of Scams and Scam Victims: ScamPsychology.org
• Self-Help Books for Scam Victims are at shop.AgainstScams.org
• Worldwide Crisis Hotlines: International Suicide Hotlines – OpenCounseling : OpenCounseling
• Campaign To End Scam Victim Blaming – 2024 (scamsnow.com)

Psychology Disclaimer:

All articles about psychology and the human brain on this website are for information & education only

The information provided in this and other SCARS articles are intended for educational and self-help purposes only and should not be construed as a substitute for professional therapy or counseling.

Note about Mindfulness: Mindfulness practices have the potential to create psychological distress for some individuals. Please consult a mental health professional or experienced meditation instructor for guidance should you encounter difficulties.

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

If you are in crisis, feeling desperate, or in despair please call 988 or your local crisis hotline.

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