Gen Z Fraud: Tips For Fighting It

Gen Z fraud is on the rise. Learn why Gen Zers are prime targets for scams, common fraud tactics, and tips to stay safe online. Protect yourself today!

Fraud is becoming an everyday reality in the digital space. From online shopping scams to phishing attacks and identity theft, scammers are adapting rapidly.

A significant portion of U.S. adults, specifically about one in three, have encountered financial fraud or scams in the past year. Surprisingly, the alarming fraud rate seems to spotlight Gen Z.

Generational differences in vulnerability to online scams are notable, with Baby Boomers being less likely to fall victim compared to Gen Z. While older adults typically experience scams through traditional methods like phone calls and emails, fraudsters have tailored their tactics to exploit younger users on social media platforms, leading to higher financial losses among Gen Z compared to Baby Boomers.

Below, we uncover some of the top tricks scammers use on Gen Zers and red flags to look out for online. We also share Gen Z fraud prevention tips to safeguard personal information.

Why Gen Zers Fall Prey To Scams

Despite being digital natives, Gen Zers are highly susceptible to fraud. This demographic is the most active online, making Gen Z the prime target of scammers.

That’s why it’s common for scammers to tailor their schemes to specific Gen Z habits, such as:

• Overconfidence in tech skills: Many Gen Zers assume they can spot scams, making them less careful to detect subtle plots.
• High social media exposure: Generation Z, aged 12 to 27, spends an average of four hours a day consuming social media, which increases their susceptibility to online scams.
• Data oversharing: Gen Zers may unwittingly overshare their information online, from online gaming to social profiles.

Common Online Scams Gen Z Should Know

Gen Zers are affected by almost every type of fraud in the digital space. However, here are some prevailing types of fraud they are likely to fall prey to:

Fake Employment

Fake employment scams often prey on a Gen Zer’s desire for quick, convenient income by offering roles that pay high for minimal effort. These scams are carefully crafted to mimic legitimate job postings – complete with professional branding, detailed descriptions, and even fake interviews.

Once interest is shown, the scam typically escalates. Applicants may be asked to provide personal information for a “background check”, pay upfront for “training materials”, or even asked to deposit a check and send back a portion of the funds – only later to discover the check was fraudulent. Victims can face not only monetary losses but also damaged credit, identity theft, and potential legal trouble.

Phishing Scams

Unlike older generations, Gen Z is less wary of clicking links from “friends” or influencers, making social engineering attacks more effective. Scammers leverage their connectivity and reliance on social media and messaging apps to deliver convincing phishing attacks.

These attacks often appear as urgent notifications from banks, social media platforms, or gaming services. They might claim your account has been compromised, a payment is overdue, or you’ve won a prize – all to trick you into clicking a malicious link or sharing sensitive information.

For Gen Zers, digital literacy isn’t just about navigating platforms, it’s about being able to spot red flags. Learning to recognize phishing attempts and think critically before clicking is essential to staying safe online and protecting your financial and personal information.

Smishing

Smishing, short for SMS phishing, is a close variant of phishing, but instead of hitting your inbox, it shows up in your text messages or messaging apps. These scams are designed to look like they’re coming from trusted sources, such as your financial institution, a delivery service, or even a popular retailer.

Scammers may send text messages that appear to be from your bank or credit union, saying “We noticed a suspicious transaction on your account. Please verify immediately.” Their objective? To lure you into giving them sensitive information, which they can use to hack your bank accounts, make unauthorized purchases, or steal your identity.

If you’re used to receiving important information via text message, you’ll likely be less cautious about smishing attempts and more likely to be a victim.

Add-To-Cart Scams

This type of scam involves fraudsters gaining access to online shopping accounts of unsuspecting users, often through phishing or stolen credentials, and making unauthorized purchases. As a Gen Zer, the convenience of online shopping, combined with the desire to snag deals, can make you overlook some of these suspicious activities.

Again, common Gen Z habits like using saved payment information and fear of missing out can make you easy targets for limited-time offers that are rampant on social media.

Gaming Scams

Gaming scams take advantage of the trust and connection built in online gaming communities. Scammers create fake personas to establish a relationship – sometimes over weeks or even months – similar to romance scams. Through voice chats, DMs, and shared gameplay, they emotionally manipulate victims to extract money, often making financial requests that seem genuine due to the perceived relationship.

Identity Theft

Out of all the scams targeting Gen Z, identity theft may be the most damaging – and the hardest to detect until it’s too late. Gen Z’s extensive digital footprint and rich source of personal information make the age range an easy prey of identity fraud.

Scammers can use victims’ data to open fraudulent accounts, apply for loans, or even commit crimes in their name. The long-term consequences of identity theft, including damaged credit scores and financial instability, can leave a dent in your future.

Social Media Scams

Gen Z spends lots of time on social media, making the demographic a prime target for various scams. The stream of information and the speed of social media can lead to impulsive decisions triggered by fear of missing out on time-bound discount sales, giveaways, and influencer endorsements.

Scammers create convincing profiles and content, often mirroring popular trends, to build and exploit victims’ trust. Gen Z is particularly vulnerable to having their social media accounts hacked due to their use of these platforms.

Recognizing & Avoiding Scams Online

Protecting yourself against digital fraud is easy when you can spot fraud before the scammer gets too far. Scammers are employing increasingly sophisticated tactics, using more complex and strategic methods to deceive victims. When it comes to avoiding scams online, here are warning signs to be wary of:

• Too-good-to-be-true offers: If it sounds unbelievable, like winning a lottery you didn’t enter, purchases with free prizes, or instant wealth, it’s likely a scam. Don’t engage.
• Urgent requests for information or payment: Scammers often create a sense of urgency to pressure you into acting before you think. Be suspicious of any message demanding immediate action.
• Poor grammar and spelling: If you’re attentive to incorrect grammar, you’ve gotten a grasp of how to protect yourself from phishing scams. Many scams contain grammatical errors, typos, and awkward phrasing, which makes it a strong red flag.
• Suspicious links and attachments: Hover over links to see the actual URL before clicking. Generally, it’s best to delete links and attachments from unknown or untrusted sources to avoid interacting with them.
• Requests for personal or financial information: Legitimate organizations rarely ask for sensitive details like passwords, credit card numbers, or Social Security numbers via email or unsecured websites. Scammers often request direct financial transfers to quickly extract money from victims. Do thorough background checks before giving out sensitive data.
• Inconsistent or fake contact information: If you check the contact details and ID of someone who reached out to you for business or a deal and it’s inconsistent across different platforms, that person is likely involved in a scam.

How To Spot Phishing Scams

Here are examples of phishing messages that should raise your suspicions. You might be dealing with a Gen Z fraud attack if you receive a similar text.

• “Your account has been suspended! Click here to verify immediately or it will be permanently deleted.”
• “You’ve won a limited-time offer! Claim your prize within the next hour.”
• “Urgent! Your bank account has been compromised. We need your login details now.”
• “Send us a prepaid gift card to cover the shipping costs.”
• “Your account is suspended. Please click here to fix.”
• “You need to pay a small fee to claim your winnings.”
• “Transfer money to this account to resolve your issue.”
• “Click here to download your invoice.” (From an unknown sender)
• “Open this attachment to view your important document.” (With a strange file extension)
• “Visit this link to claim your reward.” (The link looks nothing like the official website)

Gen Z Fraud Prevention Tips

Regardless of the type of attack, here are some practical tips that can help Gen Zers avoid scams online:

• Avoid saving payment details online
• Verify job offers through official websites
• Enable two-factor authentication on accounts
• Regularly monitor bank statements for unauthorized transactions
• Think twice before clicking on unexpected links
• Use strong, unique passwords for different platforms
• Use reputable antivirus software
• Educate yourself on the latest scams
• Regularly monitor your financial accounts for any unauthorized transactions

The Federal Trade Commission reported significant financial losses due to scams, highlighting the importance of staying vigilant.

How A+ Federal Credit Union Can Help Protect Against Gen Z Fraud

Gen Z fraud prevention is necessary for a secure financial future. The rise of financial fraud has significantly impacted different demographics, with younger generations like Gen Z and millennials facing higher rates of financial loss from such scams. While some scams may seem minor and trivial, others can cause lasting financial damage. For instance, a seemingly simple bank text scam could lead to devastating money loss and expose you to long-term credit damage.

The increasing prevalence of financial scams underscores the importance of choosing a financial institution with expertise in combating these threats. To complement your fraud prevention strategy, choose a financial institution with proven expertise in combating Gen Z fraud and other digital scams. A+ Federal Credit Union is a financial partner you can count on. Ready to scam-proof your digital space? Join the A+FCU family and take advantage of our member benefits.