NextGen Inquiries: ChangeMakers Decoding CyberScams & Corruption
In an age where technology intertwines with every aspect of life, the voices of the younger generation are not just refreshing — they are essential for a forward-thinking society. This edition highlights two distinct yet equally compelling viewpoints from Gen Z's bright minds.
We have Veda Nair, a young 8th grader whose analytical prowess and eloquence defy her years. Veda brings a surprisingly mature perspective on the intricacies of corruption, providing clarity on the depth of the problem. Her work is articulate and we’re excited to feature more of her articles in the coming editions of this newsletter.
Next meet Madhu Sreyas, whose passion for technology and its impact on society ignites a captivating discourse on the subject. Sreyas’s deep dive into the digital world explores how tech innovations hold the potential to sculpt our future, for better or worse. His articulate analysis of technological impacts is both thought-provoking and profound, offering readers a comprehensive view of the digital horizon.
THE SPREADING DISEASE OF CORRUPTION
By: Veda Nair
Corruption typically arises when individuals abuse the power entrusted to them for personal gain. This erosion of trust weakens economies and can obstruct a nation’s growth while exacerbating poverty and inequality. Understanding how corruption operates behind the scenes is key to exposing and holding those involved accountable.
Corruption is often associated with dishonest actions by individuals in positions of authority, such as government officials or managers. It manifests in various forms, including bribery, embezzlement, extortion, nepotism, under-the-table deals, election fraud, money laundering, and more.
In the financial world, for instance, investment managers may operate a Ponzi scheme, a type of investment fraud. These schemes can trap people in illegal activities through contracts they don’t fully understand. Finance professionals are expected to adhere to a code of ethics to avoid conflicts of interest.
Those found guilty of corruption face penalties ranging from imprisonment and fines to a loss of reputation. Corruption's impacts are long-lasting, affecting not just individuals but also institutions. Banks, for example, have suffered from engaging in activities such as money laundering and rigging foreign exchange markets. When such cases involve well-known entities, media coverage can severely damage reputations.
Investing in a country plagued by corruption can be up to 20% more expensive. Globally, over a trillion U.S. dollars is paid in bribes each year. In 2015, the Securities and Exchange Commission (SEC) fined five major global banks on corruption charges related to the rigging of the Foreign Exchange market. The implicated banks, including JPMorgan Chase, Barclays, and the Royal Bank of Scotland, paid fines exceeding $2.5 billion each.
The Gupta family's alleged influence over South Africa through bribery and political favors is a case in point, resulting in the misappropriation of as much as $7 billion in government funds. Despite efforts to combat corruption, challenges persist, especially in nations grappling with high inequality.
India's 1992 stock market scandal, orchestrated by Harshad Mehta and others, led to a comprehensive overhaul of stock trading security measures. The scam, one of the largest in Indian history, highlighted the financial system’s vulnerabilities and spurred significant reforms.
The causes of corruption in India include complex regulations, opaque bureaucracies, and monopolies in service delivery, among others. These factors contribute to varying levels of corruption and efforts to combat it across the country.
Judicial corruption, too, is a significant issue, found to be pervasive in 30 out of 48 countries examined in a report. Corruption hinders economic progress, skews resource allocation, and discourages investment. It shakes public confidence in governance, leading to social unrest.
Addressing corruption requires more than strict laws; it necessitates a comprehensive strategy that tackles root causes, promotes ethical behavior, and strengthens institutions. Combating corruption is a collective effort, needing the commitment of governments, civil society, businesses, and individuals. Together, we can reduce corruption and foster a more just society.
PSYCHOLOGY BEHIND WHY PEOPLE GET SCAMMED
By: Madhu Sreyas
Scams are not merely isolated incidents but a pervasive global concern affecting millions of people. Exploring the reasons why individuals fall prey to scams unravels a complex interplay of psychological, emotional, and societal factors. This awareness is pivotal in preventing future victimization. Let’s dive into the psychology behind it.
The Magnitude of the Problem
Scamming is all about the manipulation of human psychology. Scammers use our emotions, vulnerabilities, and cognitive biases against us. They might play on fear, urgency, or authority to trick their victims into making unwise decisions.
Psychological Manipulation
At the heart of scam victimization is psychological manipulation. Scammers might push a sense of urgency, promising big rewards for quick action. This plays on the victim's emotions, no matter how smart or experienced they are.
Cognitive Biases at Play
Our own cognitive biases make us vulnerable to scams. For instance, the sunk cost fallacy might make us stick with a bad investment because of the time or money already spent. Scammers exploit this to keep us hooked. Also, confirmation bias can make us ignore signs of a scam because it doesn’t fit with our existing beliefs.
Societal Factors and Vulnerability
Financial insecurity and desperation also make people more vulnerable to scams. Scammers often target those looking for quick fixes or struggling with debt. Society and peer pressure can also make us more likely to take risks.
Expert Insights
Experts point out that everyone can fall for scams, even smart people. They list several reasons:
- Overconfidence: Smart people might not think they can be scammed, which makes them more vulnerable.
- Emotional Manipulation: Scammers are good at making people act on impulse.
- Sophisticated Tactics: Some scams are so well done they look legitimate.
- Social Engineering and Limited Information: Scammers play on trust and often target people who lack knowledge in a certain area.
Conclusion: Promoting Vigilance and Skepticism
No one is immune to the complex tactics of scammers. It’s important to stay vigilant, skeptical, and think critically. Being educated and developing critical thinking skills can protect us from scams.
Getting scammed isn’t a sign of low intelligence. Scammers are skilled at exploiting human emotions and vulnerabilities. It's crucial to stay vigilant, well-informed, and skeptical of too-good-to-be-true offers. Always step back, think it over, and seek advice before proceeding.
Closing Message
Increasing awareness about the psychology of scams is essential. With education, skepticism, and caution, we can defend against these manipulative tactics and protect our communities.
Like Veda and Sreyas, you can
Work with diverse communities in an area of your interest
Build entrepreneurial skills & improve soft skills
Experience collective youth power in achieving sustainable development goals
Take that first step!
Begin your change-making journey by signing up for the upcoming cohorts of our Global Challenges & Social Justice Winter Program.