yea it's just schizos.
they believe a certain percentage of society is initiated into some group that has infiltrated every institution. Due to their access they control electronic harassment technology to implant thoughts, hear thoughts and control bodily functions. Every member hears the the thoughts of every non-member, or just targeted non members. This creates an animosity toward the targets, as everyone has intrusive thoughts that can be considered pretty vile (looks at that acne ect). They also control all seeing eye technology. Every inch of the globe can be viewed like a tv station, the targets most embarrassing moments since birth are recorded and archived, as are everyone else for blackmail purpose. Watched tranny porn once? They got a pic and the local shopkeepers gonna say "tranny be $20 dollars please :)" or some similar indirect insult cleverly concealed in conversation. Similar to the Nazi zersetzung these interactions are carefully crafted and instructed to mimic signs of delusion.
Group initiates grain fame and prestige through their devious harassment of these targets. A local food distributor may serve tainted food (seamen or some other human excretion ect) to targets. Not only is this behavior encouraged, it's also mandatory depending on the level of harassment the non-member is required to receive.
Due to the technology they possess, a complicated set of strict guidelines are enforced to maintain the profitable status quo. All communication must be physical, no open displays of technology in front of muggles, unless directed to do so as a form of harassment. No snitching. ect. Society must not descend into anarchy, it must remain functional, the current system is what they desire, it offers great control and profit.
The setup is basically they live. An initiated class that has access far beyond the wildest imagination of the sheep. The hierarchical shepherd class control all key rolls from the local baker to the government and banking institutions. They use this network of control to maintain a functioning and profitable society that funnels wealth to the wealthy, creating a more and more imbalanced and dystopian society.
Low level initiates such as the local baker are under immense duress, their thoughts too are monitored, as well as their every move. They must obey exactly at all times, knowing the punishment.
Either that of they're just schitzos. Occams razor says its just the well documented and established paranoid delusions of a the mentally ill. These people need to be removed from society, so they won't lash out at a civilian they perceive to be involved in some vast conspiracy. Whilst incarcerated they can receive the help they need from the caring staff of a local mental institution.
Whilst it would make a good fantasy work of fiction, it does not have any basis in reality. I would however consider selling the movie rights if anyone is interested :)