Every generation is susceptible to fraud, but recent studies have shown that scams targeting Generation Z (25 and younger) are on the rise. This is the first generation that grew up in a world fully immersed on the internet which has led them to become comfortable using new platforms and technologies. However, with comfort comes less suspicion which gives fraudsters an opportunity to trick this age group into clicking on malicious links or giving out personal information.
“In 2021, teenagers and younger people reported losing $6,800 on average per incident” according to an article by American Banker.
The most common scams affecting Gen Z are:
- Employment Scams – Scammers advertise job postings on different platforms to target young people just entering the work force that are eager to find an open position. They pose these jobs as amazing opportunities with great benefits and conveniences to lure you in. They’ll then ask you for financial or personal information so you can start getting paid. RED FLAG.
- Online Loan Scams – High school and college level students often look for loan options to pay hefty tuition bills. However, you must do your research to make sure a lending organization is legitimate. Scammers will often create loan documentation that looks valid to get you to enter online banking credentials to deposit funds into your account. RED FLAG.
- Romance/Online Dating Scams – As online dating apps gain more and more popularity; scammers have found ways to target emotionally vulnerable people. They create fake profiles and begin to form a relationship with someone. After they feel the victim will trust them, they will request money for things such as medical or travel expenses. RED FLAG.
Follow these tips to avoid becoming a victim in these situations:
- Never give out your personal or financial information.
- Use multi-factor authentication (using a password PLUS a code or fingerprint).
- Do your research and look at reviews before making any decisions.
- Check your online bank account regularly to monitor for any unusual activity.
- Access your credit report for free through any of the three credit bureaus, Equifax, Experian and TransUnion, to ensure you have not become a victim of identity theft.
Click here for more information on fraud trends that affect Gen Z.