New Report Suggests Gen Z More Vulnerable To Online Scams Than Other Age Groups; Here's How To Be Safe

Young adults in the US are falling victim to money scams more than other age groups, according to new data from the Better Business Bureau. The latest BBB research shows that while seniors fall for scams more often, Gen Z and younger victims are losing more money. As per the BBB’s recent Scam Tracker Risk Report, while the median loss for victims aged over 65 is $199, the same is about $220 for the 18-24 age group. One of the top scams is targeting young people who are looking for work.

The scale of the Scams

According to the Federal Trade Commission, Americans lost nearly $9 billion last year to scams as per a WHIO TV7 report. Further, Americans lost about $2.7 billion combined to scams originating on social media between January 2021 and June 2023, according to CNBC.

What is the employment scam targeting young people?

As per the BBB’s report, in employment scams, the scammers send job seekers offers and ask them to make supply purchases from a vendor linked to the scammer. They may also steal the banking information of the applicants. Further, other frauds include online purchases, cryptocurrency, and home rental scams.

Here's How The Scam Unfolds

In the WHIO T7 report, a victim of the scam named Edward Johnson described how he was defrauded. Johnson was looking for a remote job to make extra money and used a popular employment site to apply with a known company. He was then sent a legitimate-looking offer letter with compensation and benefits. He said he was also asked to fill out a W-4 form along with confidentiality forms. Johnson even went through a virtual training course. However, the criminals were simply after Johnson’s banking information which they used to steal a couple hundred dollars from his account.

In another case, a woman named Shirley Delk described how she was scammed by a company that tried to make her purchase remote work supplies. In a CBS News report, Delk says she applied to a post of a remote IT specialist online. She then received an offer the very next morning, asking her to talk to the hiring manager. However, Delk spotted the red flags right away as she was hired the same day with a vague job description. The company’s executives further told her to purchase equipment like a computer, printer, and anything she needed. She even received a check for $6,800 and was told to deposit it and call back for more instructions.

However, when she asked about her W-4 form, the employers said she would get all her documents after she completed the purchase. With this Delk realized that it was an elaborate scam.

How to be safe?

In a Fox59 report, Judy Dollison, the BBB president of central Ohio says that thoroughly vetting employers and searching online to see if they have any other job listings is the first step to ensuring safety. Further, job seekers should be careful of any suspicious demands that the employer makes like the purchase of supplies or sensitive financial information.

It is always best to protect bank account information, credit card numbers, social security numbers, and all other sensitive information from strangers online, even if they claim to be employers at first.

Further, checking with the employer’s official website or portal is always recommended to bust imposters.

Also, checking reviews on job sites can provide employees and candidates with a fair idea of the legitimacy of the listing. They can also check the Better Business Bureau (BBB) to see if a company has negative reviews or claims of fraud.