Is dishonest an abstract noun

No, the Word "it" is a pronoun, a Word that takes the place of a noun in a sentence. The Word "deceive" is a verb, a Word meaning to mislead, delude; to impose a false idea; a Word for an action.

The pronoun "it" is a singular pronoun and the correct form of the verb for a third person, singular subject is "deceives".

Example: An optical illusion can be confusing. It deceives the eye.

The pronoun "it" takes the place of the singular noun "optical illusion".

The noun forms for the verb to deceive are deceiver, deceit, deception, and the gerund, deceiving.