Why Gen Z Is More Likely to Fall for Online Scams Than Boomers and Millennials

Online scams are rising at an alarming pace. Between 2019 and 2023, cybercrimes have nearly doubled from 467,000 to 880,000.

And who gets scammed the most? Based on the latest data, it’s those from Generation Z born between 1997 and 2012.

These younger adults are surprisingly more susceptible to cyber fraud than any other generation. According to a Deloitte survey, Gen Z Americans are three times more likely to experience a scam online than Baby Boomers. They are also at a higher risk of having their social media accounts hacked and location data misused. 

But what makes Gen Z more vulnerable to swindles in cyberspace than Boomers and Millennials? In this article, we explore the answer to this question in detail.

The Common Reasons Why Gen Z Falls for Online Scams

Gen Z members are digital natives who were exposed to the internet at a very young age. Even school-aged children of this generation are extensively familiar with maneuvering the digital landscape with impressive dexterity.

However, a lack of cybersecurity education is a prevalent issue that prevents many younger people from understanding the potential threats. The educational materials available are still mostly created by the older generations, making it difficult for youngsters to relate to or grasp them.

This has had an undeniable impact on security awareness and education among the Gen Z cohort.

Having said that, more aspects are at play here than meets the eye.

So, what other reasons make Gen Z more likely to fall victim to online scams?

• Excessive Online Activities

The risk exposure of Gen Z is simply staggering when you consider the scale of their digital interactions.

On average, Generation Z spends around 9 hours on their screens each day. They seek more services on the internet, maintain multiple accounts on various platforms, and get connected online on more devices than any other generation.

And it goes without saying, the more time someone spends online, the higher the likelihood of getting scammed.

• Over-Reliance on What They Read Online

Did you know that 46% of Gen Z members count on social media for information?

The problem is, you can’t always believe everything you see or read online. Digital platforms aren’t vetted or regulated to the same level as print mediums. This leads to more opportunities for misinformation, manipulation, and fraud.

With little regulation, scammers could easily dupe online users with a deceptive ad, social media post, article, or review. And who’s more inclined to read and believe them? Apparently, Gen Z. 

• Fewer Life Experiences

Unlike their boomer grandparents, younger adults of the Gen Z age group lack enough life experiences to identify fraud and deception.

To verify information, they mostly rely on their peers, who are often just as misinformed as they are.

And to make matters worse, these youngsters’ digital interactions are also clouded with overconfidence — a typical outcome of increased familiarity with technology from an early age. All these factors could make them extra susceptible to fall for a scam.

• Impulsive Nature

The Gen Z cohort is notably impatient. They prioritize instant gratification, choose convenience over real value, buy things on a whim, and make quick decisions.

In their haste, they could often miss the finer details and, as a result, drag themselves into trouble with scammers.

For instance, in most cases, younger adults wouldn’t think twice about sending money to a total stranger if they think their peers have already done so or when they’re consumed by a fear of losing out.

Warding Off Fraud: Essential Tips for Online Safety 

Whether you’re part of Gen Z or belong to one of the older cohorts, taking proactive steps to strengthen online security is critical for avoiding fraudulent threats.

Here are the essential steps for creating a safe digital experience for you and your loved ones.

Keep Personal Details Safe

Think twice before giving away personal information to anyone on the internet. Question why specific details are needed and never be overly trusting.

Moreover, understand the data protection policies of online platforms, opt out of cookie tracking features, and remove unnecessary app permissions on your devices. Importantly, be cautious about what you post on social media and practice mindful sharing.

Adopt Strong Passwords

Passwords are critical for preventing scammers from accessing personal files, accounts, and devices. So, set up complex and unique user credentials and never share them with others. If you have too many passwords to remember, use a password manager instead of writing them down.

Adopting two-step authentication is another good practice for creating an extra defensive barrier in case your passwords are compromised.

Pay Attention to Detail

By remaining alert, you can detect many of the red flags that give away an online scam.

For example, grammatical errors and typos are common signs of scam emails, messages, and websites that impersonate reputed organizations. If you look closely, you might also notice slight differences in logos, branding, and company names.

Verify Before Responding

Carrying out necessary verifications is essential for minimizing the risks of phishing and impersonations.

For instance, you can reverse search phone numbers and email addresses on Nuwber to identify their legitimate owners. Reading reviews, checking social media accounts, and seeking references are other measures you can take to authenticate people and organizations.

Protect Data From Malware

To safeguard your digital data against malware attacks, you need a reliable virus guard.

An effective anti-virus software could scan your devices for spyware, trojans, keyloggers, and similar threats, which creates a safe environment for you to interact online. Many can also scan emails, warn you about suspicious sites, block adware pop-ups, and provide a range of other useful services.

To Recap

Each year, the internet exposes millions of Americans to cyber fraud. Gen Z, in particular, seems to fall victim to online scams more than Boomers and Millennials.

Excessive internet use, too much faith in what they see online, fewer life experiences, and an overly impulsive nature have all made young adults more susceptible to digital fraud. Of course, a lack of cybersecurity education has a role to play in it, too.

To ensure online safety, practicing cautious data sharing, adopting strong passwords, protecting against malware, and verifying the identities of those you meet online is critical. Paying attention to detail and adopting a skeptical approach won’t go to waste either.

FAQ

What are the most common cyber scams that target young adults?

Similar to frauds targeting the older generations, those aimed towards Gen Z are usually motivated by either money or personal data. However, the specific mechanisms adopted by scammers to dupe this digital native generation can vary from the regular swindles.

Too-good-to-be-true product promotions, job scams, investment swindles, fake scholarships, and romance scams stand out among financial frauds.

Common identity theft schemes involve phishing emails and DMs, fake contests and surveys, and social media account takeovers. Using these, scammers can target users’ account passwords, financial information, social security numbers, and similar data.

Why is phishing more prevalent today?

Phishing is a simple technique many scammers adopt to trick victims, including the younger cohorts. It usually involves a fake DM, email, or a social media post — methods that are inexpensive to execute and difficult to trace.

Phishing is also highly effective, especially when combined with impersonation tactics. For example, a bogus email can mimic a popular social media platform to steal account credentials by directing youngsters to a spoofed web page.

This type of fraud that imitates well-known entities could be alarmingly convincing and can mislead even adults, increasing the chances of falling prey.

Why are older adults likely to lose more money to an online scam?

Older adults have more savings than the younger generations. This makes them an attractive target for financial scams. However, there are other reasons that may increase their vulnerability to deceptive schemes on the internet.

Retirees are generally less technologically savvy, having had relatively little exposure to digital services and cyberspace during their lifetime. So, this age group could find it more difficult to identify fraudulent websites, fake emails, and online impersonations.

They are also more trusting of strangers. And declining cognitive functions could make them less likely to notice or recall details.

What are the common consequences of falling for an online fraud?

An online scam would usually result in loss of money or personally identifiable information (and, sometimes, both).

For example, when a fraudster gains access to your social media account, they can execute various deceptive schemes using your identity. They could promote fake investments, sell stolen goods, and target contacts of compromised accounts for financial scams.

As a result, you can lose your account, get banned from the platform, and possibly even face legal repercussions.

How should I respond if I become a victim of a potential scam?

To a large extent, the steps you must take will depend on the type of fraud you’ve encountered online.

As a general rule, all online scam victims should lodge a complaint with law enforcement and alert the Federal Trade Commission (FTC). This is particularly useful for creating a recovery plan when your identity is compromised.

Alerting the organizations related to the incident is important, too. For instance, if you suspect you’ve shared your payment details with a swindler when shopping online, you must notify your bank or credit card company.

If you find your social media account hacked or encounter social media impersonation, informing the relevant platform is also a must.

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