Yes, it is a perfect scheme. But there also happens to be a name for it.

In a lucid essay titled „Gaslighting: State Mind Control and Abusive Narcissism“, Vanessa Beeley writes the following:

The psychological term “Gaslighting” comes from a 1944 Hollywood classic movie called Gaslight. Gaslighting describes the abuse employed by a narcissist to instil in their victim’s mind, an extreme anxiety and confusion to the extent where they no longer have faith in their own powers of logic, reason and judgement. These gaslighting techniques were adopted by central intelligence agencies in the US and Europe as part of their psychological warfare methods, used primarily during torture or interrogation.