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On The Money –
A Financial Wellness Series
On The Money –
A Financial Wellness Series
From TikTok challenges to meme culture, Gen Z is always plugged in and on top of the latest trends. But studies reveal that even our most tech-savvy generation, born between the late 1990s and early 2010s, isn't immune to scams.
According to a survey by Deloitte, Gen Zs fall victim to scams at higher rates than Baby Boomers. In fact, the Gen Zs were more than twice as likely to have their social media accounts hacked, fall for an online scam, have their identity stolen, or have their devices compromised over the past year. While these incidents are particularly high among Gen Z, it’s important to note that scams can happen to anyone.
The latest Federal Trade Commission (FTC) data for 2024 paints a concerning picture. Consumers reported losing $12.5 billion to fraud, representing a 25% increase over the previous year. The most common fraud types reported included impostor scams, online shopping scams, business and job opportunities, investment fraud, and internet services. Once again, emails were the most frequent method of contact by scammers, followed by phone calls and text messages.
So, what can you do to protect yourself?
In today’s digital age, scams are becoming more sophisticated, targeting unsuspecting individuals both online and offline. Whether you’re a Gen Z or a seasoned internet user, it’s important to recognize the most common scams and take steps to safeguard your money and information.
Phishing Scams
Fake Employment Scams
Romance Scams
Investment Scams
Rental Scams
Practical Advice
Phishing continues to be one of the most prevalent and dangerous scams, especially for tech-savvy individuals. Modern tactics go beyond basic email scams; they’re now appearing as text messages, social media messages, and websites that look almost identical to the real deal. Fraudsters may impersonate legitimate people or businesses to steal personal and financial information.
Don’t Click on Suspicious Links
Whether received through email, text, or social media, avoid clicking on any link that looks unusual.
Verify the Sender
Double-check the sender’s email address, especially when it looks unfamiliar or unexpected. Contact the person or company directly if you’re uncertain.
Use Multi-Factor Authentication
Enable two-factor authentication to add an extra layer of protection to your accounts.
Job hunting can be tough, especially when everyone is looking for the perfect remote work opportunity. Scammers know that, so they set up fake job ads that promise everything from “unlimited income” to “work from anywhere” gigs.
If you’re currently on the job market, be sure to take a closer look at the job descriptions before you hit “Apply.” If you’re asked to pay upfront for training material or share personal information like your bank account number without a formal job offer, you’re probably being scammed.
Verify the Company
Search for reviews and check the company’s official website.
Never Pay for a Job
Legitimate employers will never ask for money up front.
Think you can’t fall for a romance scam? Think again! Even the most cautious individuals can be duped by a scammer who knows how to play on emotions. Scammers may slide into your DMs, and your heart, with fake love stories before hitting you with a request for money. And with online dating, there’s only one thing worse than falling for a catfish, and that’s being scammed by that same catfish.
Verify Their Story
If it seems too good to be true, it probably is. Research their profile picture by using Google image search features and investigate the details they share with you.
Talk to Someone
Talk to a trusted family member or friend for advice.
Report Suspicious Activity
If you suspect you’ve encountered a scammer, report them to the Federal Trade Commission (FTC) at https://reportfraud.ftc.gov.
Crypto bros, stock tips, and easy-money schemes are everywhere. These scams often promise high returns with little risk and pressure victims into acting quickly. Don’t let the fear of missing out lead you down a path of losing your money.
Do Your Research
Verify the legitimacy of any investment opportunity and be cautious of unsolicited offers.
Consult a Financial Advisor
If you need help with an investment plan, Redstone Federal Credit Union financial advisors are here to help.
Whether you’re looking for a summer vacay rental or a new place to live, rental scams are on the rise. Scammers post fake listings of homes or apartments, asking you to pay a deposit before you even see the place. And trust us, paying that deposit means you’ll never see that apartment, or your money, again.
Inspect the Property in Person
If possible, visit the rental before making any payments.
Never Pay via Wire Transfer
Use trusted payment platforms and always be cautious of anyone requesting unusual payment methods.
Need advice on whether to rent or buy? Check out this On the Money blog.
Use unique, complex passwords for different accounts, and enable two-factor authentication wherever possible.
Regularly check your bank statements and credit card bills for any unauthorized transactions.
Don’t click on suspicious links, even if they appear to come from trusted sources. Scammers often use fake URLs to lure you into malicious websites.
Scams evolve, so it's essential to stay updated on the latest scam trends.Websites like the FTC’s Consumer Information page offer helpful tips and resources.
Everyone is vulnerable to online scams. By staying informed, being cautious, and following simple steps to protect yourself, you can avoid falling victim to scams and keep your online presence safe. Stay vigilant, and don’t let scammers take advantage of you or steal your money and personal information!
Next month in our Financial Wellness Series: How to Retire Early
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