Scam Psychology: How does a scam encourage people to adopt a lost cause?

When one questions scams and suspect schemes for as long as the MLMSkeptic did, one'd seen a lot of things, such as people claiming that they forgive ZeekRewards Ponzi even before we knew the full extent of damage (just under a billion dollars), how Paul "ZeekRewards" Burks told newspaper "don't blame me, I never told them to invest more than they can afford", and so on.

Jael Phelps of Westboro Baptist Church picketing Trinity Episcopal Church in Tulsa, Oklahoma
(Photo credit: Wikipedia)

However, some time the... fanaticism of certain fans of particular schemes rival that of the pro-life-crazies (who had assassinated doctors that performed abortions, for example, try reconciling that!), or perhaps those of Westboro Baptist Church (well-known crazies of the US). Others appear to be willing to "go down with the ship".

A recent example is Emgoldex, which just rebranded itself as Global InterGold, and some "diehard" Emgoldex fans, eager to defend their own stance on the scam, engaged in conspiracy theory with zero regard to logic.

I won't bore you with long history of Emgoldex. Suffice to say this European based Ponzi scheme had spread via help of the Internet, and nobody really knows where it's being ran out of (may have been Russia) but it was denounced as illegal all over the world, including the US (both state and Federal level), Malaysia, Philippines, even Dubai UAE where it allegedly was based out of.

Yet there are still backers who claimed that "you just don't understand Emgoldex", "you just don't understand MLM", "you are prejudiced against MLM", and so on and so forth. You can find many of them in the comments on this topic.  Some of them are certain of their righteous cause, others are somewhat doubtful but "hopeful" that they had made the right choices, even when facts started to stack against them.

Bad Argument: The Evil Twin Did it

When confronted with the news that their pet scheme may be a scam, victims of a scam react in various ways to deal with their cognitive dissonance, when two sets of facts collide as they can't both be true.

Some recoil in horror, realize they've been scammed, and quickly attempt to withdraw their money (which are usually stonewalled, leading to further desperation.)

Some are doubtful but vowed to stop taking their upline's word and do some honest research on their own

Some recoil and hide, denying that any "negativity" exists, and you should shut up because they don't want to hear about how they are wrong.

Some react with indignation and attempt to defend their scheme, but when they are armed with little more than PR material and fallacies like "I got paid so it's not a scam (to me)" they rarely have much success convincing anyone but themselves.

Some goes for "special pleading", i.e. come up with reasons why their scheme is the exception, not the rule, i.e. it fits all the definitions of a scam, but it's not a scam

Some go for a "no true Scotsman" gambit, claiming that the company itself is fine. It's only a few "rogue reps" that ruined things for everybody else.

Though recently, in span of a week or two, I saw a new variation on "no true Scotsman"... which I will call...

"The Evil Twin Did It!"  aka "They stole our name!"