Depends. It depends on who believes them, and what decisions those people make.
I realize that most folks don't have four decades' worth of experience, dealing with hardened criminals, con artists, and generally delusional people, to firm up their personal boundaries.
I've found that a good start, is not to do things like apply emotionally-charged labels to the folks doing this. If they are dangerous, or present a risk, they may be sanctioned, imprisoned, whatever.
But I have found, in my experience, that offering kindness, where none is expected, is often key to helping folks turn things around.
As I said, many of these people are living in their own personal hell, where they hate themselves, and the world around them, and that tends to set up a reinforcement feedback loop.