There's already been a compelling story: the Stasi[1].
> By the 1970s, the Stasi had decided that methods of overt persecution which had been employed up to that time, such as arrest and torture, were too crude and obvious. It was realised that psychological harassment was far less likely to be recognised for what it was, so its victims, and their supporters, were less likely to be provoked into active resistance, given that they would often not be aware of the source of their problems, or even its exact nature. Zersetzung was designed to side-track and "switch off" perceived enemies so that they would lose the will to continue any "inappropriate" activities.
[1] http://en.wikipedia.org/wiki/Stasi#Operations