ON THE MONEY > LIBRARY > SECURITY > GEN Z AND SCAMS
What You Didn't Know About the Young and Fraud
Something to Think About
If a scammer was trying to pull off a con on two groups of people, one aged 13-21, and one aged 55+, which group is more prone to loss?
If you’d guess the aged 55+ group, you might want to reconsider. Though they have never known a time when tech was not a huge part of their lives, it might be wise for today’s emerging adults to learn that their parents may actually know a thing or two about life.
The Research Behind It
A recent study by online investigators, Social Catfish, found that no age group has seen a bigger surge in money lost due to online scams than people under age 21. From 2017 to 2022, the money lost by Gen Z grew 2500%, compared to 805% for seniors. Of course, in actual dollars lost, Gen Z’s lower savings and earnings capacity makes for less money to lose. In 2022, Gen Z lost a combined $210 million, while seniors amassed a loss totalling $3.1 billion! Regardless, the rise in loss among Gen Z is a concerning trend. Here’s what you need to know about teens and scams.
So, Why Are Teens More Likely to Fall for Scams?
One reason Gen Z may not be able to spot scams is because many of them had their own Facebook account before they were out of diapers – and this is hardly an exaggeration. They’ve been encouraged to interact with strangers online and share details of their lives since they’ve been old enough to type. Is it any wonder, then, that they sometimes share too much information with the wrong people? Of course, Gen Zers also spend an enormous amount of time online and are more exposed to scams.
Scams Teens Fall for the Most
Online Sales
According to the Better Business Bureau, 83% of young adults fall victim to retail scams. Examples of this being an online product purchase that isn't actually delivered or someone impersonating real vendors selling in-game purchases with phishing links that give direct access to the victims' accounts.
Romance
Much like the catfish scams we discuss in our Protect Yourself From Scams article, this romance scam for the younger generations is when scammers target teens using stolen photos to build up a fake romance with an unsuspecting mark. When a relationship has formed, the scammer asks the teen for money.
Student Loans
Navigating where and how to take on this major milestone can leave you vulnerable. Be aware of fake websites with pirated Department of Education logos that trick students into sharing their personal information. Check out our Paying for College article for more tips and tricks on how to plan for a brighter education.
How to Avoid Getting Scammed
Security and Privacy
Security Settings – Keep the security settings on your devices updated with the most recent patches.
Social Media – Keep your social media pages private.
Passwords – Choose strong, unique and long passwords for all of your accounts.
Personal Information – Never share personally identifiable information with an unverified contact.
Monitoring and Information
Wiring – Don't wire money to an unverified contact.
Employment – Thoroughly research the company behind any job you consider.
Links – Never download a link from an unknown source and visit sites directly instead of clicking on links embedded in ads.
Website Literacy – Be wary of any website, ad or email that features poor writing and/or has lots of typos.
Additional Resources
Protect Yourself From Scams
It’s important to recognize the most common scams and take steps to safeguard your money and information.
Paying For College
Budgeting now means fewer money meltdowns later, and maybe not having to eat ramen for dinner every night.
Avoiding Holiday Scams
Enjoy a stress-free season by staying informed and knowing what red flags to look out for.