Protecting Gen Z Members from Online Scams

Scam artists are predators whose goal is to separate victims from their money.

A member of Generation Z (born 1997–2012) is three times as likely as a Baby Boomer (born 1946–1964) to fall victim to an online scam, according to a report from professional services consultant, Deloitte.

Some of the most common scams targeting young adults include:

Social Media
Fake surveys or contests are popular methods for enticing users to provide personal information. Another is catfishing, when a scammer creates a false identity to befriend the victim and steal their money or personal information.
Online Shopping
Websites that appear to be legitimate online sellers — but aren’t — seek to get money without delivering the goods. Often, the offers for pricey consumer goods seem too good to be true, which is part of the scammer’s lure. Another form of this scam involves buyers who think they are buying a legitimate item but receive a counterfeit one instead.
Identity Theft
Scammers will prey on younger online users seeking employment or applying for a credit card. The scammer’s goal is to get the unsuspecting applicant to provide personal information, which will then be used to open new accounts or engage in other unscrupulous activity.
Sweepstakes and Contests
It begins with an unsolicited email or text informing the recipient they’ve won money, a vacation, or a car, or that they could win a prize by solving a puzzle. However, before the user/winner can collect their prize, they must pay a fee or tax. Once the payment is made, the prize never materializes.
Scholarships and Grants
Hundreds of thousands of victims fall prey to this fraud. The pitch? The scammer offers to share information about little-known scholarships and grants accessible to a college student. The catch is that the victim must pay before getting access to the money. A variation of this scam involves informing the student that they've already won a scholarship, but require a fee to obtain the money.

Tips to Help Thwart Scams

These steps can help protect anyone who goes online:

Keep your computer and mobile device updated with the latest security software and spam filters
Make your passwords complex, and don’t use them for multiple accounts
Enable two-step authentication
Turn off location-based services and cookie tracking
Never open emails from people you don’t know
Make sure the website uses secure technology before shopping online
Don’t provide your personal or financial information (bank, credit card, Social Security number)
Refuse any request for payment by wire transfer, cryptocurrency, or gift card
Ignore requests asking for immediate payment or personal information

If you think you’re a fraud victim:

Go to IdentityTheft.gov to report it and to learn next steps if you gave your Social Security number to a fraudster
Contact your financial institution or credit card company if you’ve already made a payment, or an authorized withdrawal occurred
Contact the wire transfer company or bank and ask them to reverse any fraudulent transfer

NJM Insurance Group’s Commitment to Safety

NJM’s enduring commitment to safety can be traced back to our earliest days — with a focus that has expanded from improving conditions in manufacturing facilities to helping keep customers safe on the roads and at home. NJM is a leader in personal and commercial auto, homeowners, and workers’ compensation insurance.

References:

Ohlheiser, A.W. (2023, September 21). Gen Z falls for online scams more than their boomer grandparents do. Vox. https://www.vox.com/technology/23882304/gen-z-vs-boomers-scams-hacks.
Burga, Solcyre. (2024, February 24). Why Gen Z is Surprisingly Susceptible to Financial Scams. Time. https://time.com/6802011/gen-z-financial-scams-fraud.
Taylor, Chris. (2023, October 10). These tips can help Gen Z avoid online financial scams. Reuters. https://www.reuters.com/markets/wealth/these-tips-can-help-gen-z-can-avoid-online-financial-scams-2023-10-10.