Online scams and cyber attacks are evolving and becoming more prevalent. These advanced scammers and cyber bad guys do not discriminate - today everyone is a target, no matter their age, race, or location. Some emerging studies have shown that younger generations like Gen Z and Millennials could be more susceptible to online scams, simply in part because they spend so much time online. These younger generations are particularly at risk between social media, online banking, e-commerce, gaming, education, and more.
In this article, we’ll dive into the trends and look at why online safety for Millennials and Gen Z should be at the top of these generations' minds. We’ll also provide practical tips and strategies to boost online scam awareness and reduce the generational fraud that’s plaguing today’s youth.
Online Scams: A Growing Threat for All Generations
Online scams have become one of if not the largest threats to online users. According to the FTC, Americans lost more than $12 billion to online scams in 2023. Digital platforms as mentioned above have made it easier than ever before for scammers to find victims and execute their scams. According to a [Deloitte survey]((https://www.deloitte.com/global/en/issues/work/content/genz-millennialsurvey.html), Gen Z and Millennials are disproportionately impacted compared to older generations. Gen Z members are 3 times more likely to get caught in an online scam than members of the Baby Boom generation.
These findings might seem surprising given that Gen Z and Millennials have grown up with the internet, so you might assume they are more savvy users. However generational fraud clearly affects younger generations more than older and the reasons are precisely because they have grown up with the internet. Their hyper-connected world and trust in online platforms make them ripe for online scams.
Why Are Gen Z and Millennials More Vulnerable to Online Scams?
High Digital Exposure
Gen Z and Millennials spend a significant amount of their time online, with social media sites being one of the most commonly used platforms. Between apps like Instagram, TikTok, Facebook, and Snapchat, scammers have turned to social media platforms to find unknowing victims. Recent findings in Time highlight that Gen Z financial scams are often tied to social media usage - 1 in 4 Gen Z members has experienced a social media-related scam, and they are on the rise. These stem from the use of fake influences or too-good-to-be-true giveaways that convince Gen Zers to share personal details or financial information.
Overconfidence in Technology
Gen Zers and Millennials are native digital users so they tend to be more confident in their use or expertise in technology. This overconfidence, however, can lead to blind spots. They might overlook some clear red flags that could indicate what they are doing online could lead to a scam or a cyber attack. With the use of advanced AI, for example, fake e-commerce sites and job scams appear all too convincing. A recent article in Business Insider reported that Gen Z loses more money to online scams than Baby Boomers, despite usually being more tech-savvy.
Lack of Online Scam Awareness
We’ve learned that older generations tend to exercise more caution because of their lack of trust or experience with certain online platforms. These feelings are precisely what Gen Zers and Millennials sometimes lack. There is a pertinent need for greater online scam awareness campaigns that are specifically designed for Gen Z and Millenials in order to help them better understand and recognize the deceptive tactics used by today’s scammers.
Types of Scams Targeting Younger Generations
Phishing Scams
Phishing scams, where attackers use different means to impersonate people or companies who are trusted to steal information, continue to plague consumers all over the world. Phishing scams usually arrive via emails, text messages, DMs on social media, or even through phone calls. Gen Z and Millennial members may end up clicking on these phishing links sent through seemingly legitimate accounts.
Social Media Scams
From fake giveaways to fake influencers selling fake products, social media scams are one of the top ways younger users become victims of online scams and identity theft. Fraudsters leverage social media's popularity and huge user base to build trust and manipulate users into giving away sensitive information.
Online Shopping Fraud
Younger generations are avid online shoppers. Fake e-commerce stores, often advertised through social media or web banners, lure users with "too-good-to-be-true" deals, only to disappear after payments are made.
Job Scams
Gen Z is expected to make up nearly 30% of the workforce by 2025. With these younger people entering the workforce in the masses, scammers will prey on them by posting fake jobs or opportunities. They sometimes do this by requesting upfront fees for applications and training materials.
How to Improve Online Safety for Millennials and Gen Z
While the statistics of scams plaguing younger users might seem scary, there are a few ways online safety for Millennials and Gen Z can be strengthened:
- Continued Education: Understanding the tactics used by scammers and attackers is the first step to avoiding scams. Stay informed about the latest scamming strategies, social media scams, and online shopping fraud.
- Verify First: Always double-check links, social media accounts, and websites before providing personal information. Tools like Online Security can protect you in case you do click on a phishing link or download malware from a phishing email.
- Enable Two-Factor Authentication (2FA): Two-factor authentication is a great way to add an extra layer of security. 2FA, either through SMS, Email, or an authenticator app, makes it much harder for scammers to gain access to your accounts and commit identity theft.
- Think Before You Click: If something feels suspicious, it probably is. Avoid clicking on unrequested or questionable links - especially from social media, text messages, or emails.
- Raise Online Scam Awareness: Take the time to share your experiences with friends and family members. This could help them avoid similar pitfalls. Awareness is one of the most powerful tools in the fight against generational fraud.
Final Thoughts: Combating Generational Fraud
It’s clear that believing older generations are the primary targets of scammers is not true. Gen Z and Millennials are facing increased risks of online scams and falling victim to identity theft. The adoption of online platforms for communication, commerce, gaming, and more makes them ripe targets. By increasing their online scam awareness and use of advanced security tools, younger generations can better protect themselves from scams. Education, vigilance, and proactive digital safety are the keys to reducing these vulnerabilities. At ReasonLabs, we are committed to helping users of all generations stay secure online. Stay informed, stay aware, and stay safe.
