Self-proclaimed godman Nithyananda has been at the center of controversy for several years due to various allegations against him, including rape, kidnapping, and child abuse. Wikimedia Commons
MedBound Blog

Factors Behind Extreme Scams: A Case Study of Nithyananda's Kailasa Scam

Self-proclaimed godman Nithyananda scammed the US city of Newark by creating a made-up country.

Gunjan Negi

Self-proclaimed godman Nithyananda has been at the center of controversy for several years due to various allegations against him, including rape, kidnapping, and child abuse. In 2019, he fled India after the police charged him with rape and founded a new nation, Kailasa, which he claimed was a Hindu sovereign nation.

Recently, Nithyananda managed to scam the US city of Newark in the name of a fictional country called United States of Kailasa and presenting fabricated documents to establish a sister-city relationship with Newark. Nithyananda promised to bring investments, jobs, and cultural exchange programs to Newark in exchange for the sister-city status.

On their website, over 30 American cities like Dayton, Richmond, Ohio, Virginia, and others have also been scammed, according to a Fox News report.

We are a revival of the ancient enlightened Hindu civilizational nation, operating through a group of NGOs in multiple countries across the world. It was established much in the spirit of a country like the Sovereign Order of Malta, a borderless service-oriented nation.
"Press Office of the Holy See of Hinduism"
The flag of the Kailasa Nation.
Religion offers people hope for salvation. Gurus who preach can evoke access to this for people who might feel lost or disconnected, spiritually.
Dr. Suraj Sood, Psychologist, PhD, Consciousness and Society

Newark officials were initially impressed by Nithyananda's proposal and the supporting documents, which included a letter from the Consulate General of Kailasa and a proposal outlining the benefits of the sister-city relationship. However, it was later discovered that Kailasa was not a recognized country and that Nithyananda had fabricated the documents to support his claim. The sister-city agreement was terminated after only six days.

Why do people fall for such scams?

Scammers like Nithyananda use various tactics to exploit people's vulnerabilities and psychological biases, leading them to fall for their scams. Here are some common psychological factors that can make people more susceptible to scams:

  1. Trust: Scammers often exploit people's trust in authority figures, institutions, or individuals who appear to be credible. In Nithyananda's case, he used his status as a self-proclaimed godman and spiritual leader to gain the trust of Newark officials.

  2. Emotions: Scammers may use emotional appeals to persuade people to act quickly or irrationally, such as by playing on their fears or desires. In Nithyananda's case, he promised Newark officials that the sister-city relationship would bring investment, jobs, and cultural exchange programs, appealing to their desire to boost the city's economy and cultural diversity.

  3. Cognitive biases: Scammers often exploit cognitive biases, such as overconfidence or optimism bias, that can lead people to make irrational decisions. It may be why the city of Newark easily believed the scam at first.

  4. Social influence: Scammers may use social influence tactics, such as by creating a sense of urgency or by using testimonials or endorsements from others, to persuade people to act.

Overall, falling for scams like this can be a result of a combination of factors, including our natural cognitive and emotional biases, our tendency to trust authority figures, and our susceptibility to social influence.

Cult leaders like Nithyananda also often pose significant dangers to their followers. One of the primary concerns is their ability to manipulate and control their followers, often through techniques such as brainwashing, emotional manipulation, and the use of fear tactics.

Thus it becomes important that we all be careful about who we trust, especially when it comes to celebrity figures and influencers, and verify the information before blindly trusting them.

The psychology behind scammers like the Nithyananda scam can be complex and multifaceted.

Greed, Narcissism, and Lack of Empathy

The psychology behind scammers like the Nithyananda scam can be complex and multifaceted. Some of them may be motivated by financial gain, power, control, and a lack of empathy for their victims.

For those motivated by financial gain, the potential rewards of a successful scam can be a powerful motivator. They may be willing to go to extreme lengths to maintain the deception, such as creating an entire fictional nation, like Kailasa, to continue their scam.

Those motivated by power and control can be seeking to satisfy a deep-seated psychological need. By presenting themselves as leaders or gurus, they can manipulate and control their followers, gaining a sense of satisfaction and empowerment from the situation.

This desire for control can also be particularly appealing to individuals who feel powerless or marginalized in their own lives.

Finally, scammers who lack empathy for their victims may suffer from narcissistic or sociopathic personality disorders. These individuals may see themselves as above the law or societal norms and may engage in scams as a means of fulfilling their own desires and needs at the expense of others. They may also lack the ability to feel empathy or remorse for their actions, making it easier for them to engage in unethical behavior.

The Nithyananda scam raises important psychological issues about the dangers of cult leaders, frauds, and why people fall for such scams. Cult leaders like Nithyananda prey on vulnerable individuals, promising them a sense of purpose and belonging while exploiting their fears and vulnerabilities.

This scam also highlights the importance of doing thorough background checks before entering into any kind of agreement or partnership.

In addition, by understanding the psychological dynamics at play, we can take better steps to protect ourselves and others from falling victim to these types of fraudulent acts.

(Input from various media sources)

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