Because everyone is doing it – the bandwagon effect

It is a widespread human behaviour: we often follow the lead of others because we assume that the majority cannot be wrong. However, it is precisely this phenomenon that is deliberately exploited in cases of MLM (multi-level marketing) fraud.

Many victims report that they allowed themselves to be infected by the euphoria of others. The supposed system for success is enthusiastically advertised on social media, often accompanied by pictures of luxurious cars, dream holidays or alleged prize money. The impression created is: ‘Everyone is doing it, so I should be too!’ The thought ‘So many can’t be wrong!’ weighs more heavily than a critical examination of the risks.

The staged success of the masses

But often the success of the ‘masses’ is nothing more than an illusion. Fraudulent systems deliberately use psychological tricks to attract new participants. Pictures of supposedly successful investors, reports of allegedly high numbers of participants or artificially generated enthusiasm create the impression that one should not miss out on this opportunity.

As a result, many people invest without really understanding the system’s mechanisms. However, the shiny facades often conceal heavy losses, since the profits come less from product sales than from recruiting new participants.

Psychological phenomena behind decision-making

In addition to conforming to the crowd, other psychological factors influence behaviour in such situations:

• Fear of missing out (FOMO): the fear of missing out on a unique opportunity and the need to belong cause many to act hastily.
• Authority bias: When supposed experts or leaders promote the system, we tend to accept their statements at face value.
• Artificial scarcity: Limited offers or time-limited promotions suggest urgency and increase attractiveness.
• Gamification effect: Participants feel more involved when gamification elements such as rewards, goals or rankings are introduced.
• IKEA effect: People who have already invested time, effort or resources, whether it be recruiting new members or learning the system mechanics, tend to stick with their decision – even when the first doubts arise.

Conclusion

The combination of psychological tricks and staged success stories is a powerful weapon in the hands of fraudsters. For those affected, it often leaves a bitter aftertaste: the illusion of quick riches turns out to be an expensive fallacy. This makes it all the more important to recognise such mechanisms and to sensitise potential victims. Critical questioning remains the best protection against fraudulent systems.