A report by Vanguard has revealed that scammers use emotional and psychological tricks against smart investors, which can bypass even the sharpest financial mind. The findings were made by experts Andy Reed and John Ginelli, head of Vanguard Investor Protection. The report suggests that when someone experiences strong emotions, their brain shuts down, giving scammers a critical window to manipulate them. These tactics can be found to bypass even sharpest investors' sharp financial minds. The research also reveals that fraudsters target baby boomers and older investors for financial gain, particularly for their financial stability. The number of people reporting financial losses from fraud jumped from 27% in 2023 to 38% in 2024. Americans lost over $12.5 billion to fraud in 2024, a 25% increase over the previous year, according to Federal Trade Commission data.