Generation Z is growing up fast. This year, they’re between 13 and 28 years old and moving out into the world. Despite a lifetime of smartphones and social media, these digital natives are not immune to online scams. According to the Better Business Bureau , fraud costs 18- to 24-year-olds $150 on average—that’s more than any other age group!
Why? In part, it’s because young adults are navigating independence for the first time: job hunting, apartment searching, and looking for financial opportunities, which is precisely what criminals exploit.
Let’s take a closer look at the schemes targeting young adults so we all know what to watch out for.
Job scams
“Make $10,000 a month reselling luxury handbags!” “Earn $50 an hour liking videos!” These cons promise easy money to job hunters, then demand payment for phony recruiter fees, certifications, taxes, or supplies that never appear. Other types of job scams seem entirely aboveboard, but at some point, the criminal asks for enough information to steal your money, identity, or both. Then, as soon as they get what they want, they disappear.
Investment scams
Smooth talkers fool people in every generation, including financial experts! In 2024 alone, Americans lost over $12.5 billion to investment fraud, according to the FTC. However, Gen Z is three times more likely to be swindled. When you’re facing inflation, high housing costs, and debt, the stress can make you eager to try anything that could help.
Rental scams
A perfect apartment at an unbelievable price? Lucky you! But when you reply to the ad, your would-be “landlord” pressures you to act fast and wire a large deposit. Then, they disappear with your money. It turned out to be a fake listing using photos from a legitimate real estate website.
Romance scams
These schemes start the same way—a fake listing using someone else’s photos. Only now, the goal is getting you to swipe right and match with them. If you do, they shower you with attention and rush into being exclusive. But they avoid meeting in person, and eventually, an “emergency” comes up that needs your financial help.
How to protect yourself from scams
We’re not here to judge anyone who has fallen for a scam. Far from it. Scammers are persuasive. As a bank with a 100+ year history, Flagstar has helped people of all ages recover from being victims of fraud. Here’s what we’ve learned over the years and a few tips from other experts:
- Do not respond to pressure to act quickly. It’s a classic sign of a scam. Hang up, block them, or take whatever steps you need to shut it down.
- Do your homework. Search the name of the company/investment/housing opportunity and “scam” to see the results. Check reputable websites, like the Better Business Bureau, and read company reviews. See if your dating match appears on social media and look for comments and common connections.
- Do not pay recruiters for a job. In business, the hiring company, not the job seeker, foots the bill.
- Listen to that little voice inside. If something feels off, it probably is. As much as you want or need something to happen, the solution will not involve pressure to send personal information or money.
- Ask questions. If the other party acts like your question is ridiculous or talks a lot but doesn’t give you an answer, walk away. It’s a scam.
- Look for inconsistencies. The person on the other end may be running multiple cons or simply doesn’t know much about the subject. For them, it’s all about pressure and urgency. The conversation always gets back to sending information or money.
Remember: Being defrauded doesn’t mean you’re naïve. It means you encountered a professional criminal who’s perfected a scheme.
