The Surprising Trends About Gen Z and Fraud

The internet has played an increasingly large role in the everyday lives of many people—especially for Generation Z, who now spend an average of four hours a day consuming social media alone.

Gen Z's (people aged 12-27) comfort with the online world has a downside, though. A Deloitte survey found that Gen Z is at least three times more likely to fall for online scams than Baby Boomers. They're also twice as likely to have their social media accounts hacked.

While older adults are common victims of scams via phone and email, fraudsters adapt their attacks to the younger generation through online platforms like Facebook, Instagram, and YouTube Shorts. The scams take many forms, from fake websites and social media ads to phishing and social media impersonations.

Here are the biggest scams that Gen Z should be aware of:

The Brand Ambassador Scam

Scammers reach out to the victim using a social media platform, often through direct messages, and will claim they have the perfect look or style to be a "brand ambassador" for their company. They promise exposure, free products and sometimes monetary benefits if the person promotes their products on their account and reaches a certain level of sales through a promo code. To become an ambassador, however, the victim will need to purchase some of the brand's products. The scammer insists this purchase is necessary to show commitment or to have the products for promotion. These products are often overpriced, and once the purchase is made, the free products and compensation never arrive. The promo codes provided only offer small discounts, and don't earn much.

• Pro Tip: Be weary of anyone asking you to purchase and promote products via social media, and always think twice before buying anything from an unknown brand.

Fake Employment

Job hunting can be tough, and scammers know it. Job board websites or social media accounts can be helpful tools for anyone searching for a new job, but they can also provide an avenue for fraudsters to promote fake jobs—instead of being paid for the job, employees end up paying their fake employer.
 
These postings often describe a low-effort job that pays well and can be done remotely. Victims, however, will need to pay upfront fees for meaningless certificates, "taxes and fees," or work supplies.

• Pro Tip: If anyone ever asks you to pay something before or shortly after accepting a job, or if they guarantee you'll make lots of money, it's an immediate red flag. Always research a company before applying for a job.

Romance/Gaming Scams

Romance and gaming scams involve a scammer building an online relationship with someone and leveraging it to get the victim to transfer money. If you've seen the Netflix movie The Tinder Swindler, then you know just how bizarre romance scams can become.

Scammers will quickly profess their love to someone they may have matched with on a dating app. Soon after, they'll ask for money for things such as a plane ticket to visit, travel documents, or another urgent manner.

According to the Federal Trade Commission, this is the costliest scam, with a reported $547 million lost in 2021 alone.

• Pro Tip: Never send money to someone you meet online or allow remote access to your computer or phone.

Scholarships/Financial Aid Scams

College is expensive, and scammers want to pounce on those looking for help to cover it. These scams are conducted by fraudsters creating fake grant opportunities and asking for the applicant's account information to deposit the money into their account. From here, the scammers can steal the applicant's money and even their identity.

• Pro Tip: Never pay to apply for a scholarship or grant, and do not trust any unfamiliar resources offering financial aid.

Student Debt Consolidation/Relief Scams

This type of scam is led by an individual or company that urges consumers in debt to take out a new loan to heal their finances. Rather than helping them with debts, these attackers are taking advantage of the vulnerable consumers and stealing money with no intention to help them.

• Pro Tip: Hers's what to watch out for—any service that asks you pay a large upfront fee or sign a long-term contract. Never trust a company that guarantees quick relief or that you will pay your debt off by enlisting with their help. Never provide a Federal Student Aid log-in or PIN.