The fraudsters’ playbook: our study of Enron traders shows how easily the language of trust can be abused
From election debates to job interviews, language shapes our perceptions of how trustworthy other people are. This power can be used to build healthy relationships, but it can also be used to manipulate and deceive.
To better understand this darker side of building trust, my colleagues and I turned to the corporate world – a domain that offers plenty of cautionary tales. Our case study was among the most notorious, involving one of the world’s largest energy companies of the 1980s and 90s: Enron.
This Texas-based company went bankrupt in 2001 after it emerged it had been systematically falsifying its financial records on a massive scale. Its West Power division manipulated California’s electricity markets by exploiting flaws in the state’s newly deregulated system, boosting profits while triggering one of the worst energy crises in US history by creating artificial power shortages.
To manipulate the markets, Enron traders had to win – then keep – the trust of partners, clients and regulators. Subsequent US federal investigations led to the release of more than 500 of their telephone calls in 2005.
These conversations have offered our team of linguistic experts a rich source for analysing the tactics traders used to build and retain confidence in their criminal strategies.
Our research combined discourse analysis (a forensically detailed breakdown of the language used and how it was delivered) with behavioural science insights to establish the Enron traders’ “trust playbook”. This, we found, comprised four steps.
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