Caused by faulty attention system.
Have deficits & biases in the way they process info.
Have an unusual attention bias -> stimuli being interpreted as threatening or dangerous.
The mechanisms that filter and process incoming stimuli are defective -> struggle to focus their attention selectively. They try to process too much irrelevant info. (Disorganised thinking).
Breakdown between memory & schema processes - failure to activate schema -> cannot identify what is important info. Internal thoughts are often thought to be from an external source.