In 2022, scammers managed to swindle over $3 billion from Australians, with Gen Z and Millennials emerging as the primary targets, even though they are generally considered more tech-savvy. In 2023 social media has seen a rapid increase in online scams amongst members of Generation Z, typically aged between 18 and 25.
According to the Australian Competition and Consumer Commission (ACCC), these losses have surged by a staggering 80 percent compared to the previous year’s scamming figures in 2021.
The preferred modes of contact for scammers are as follows: text messages rank highest at 33 percent, followed by phone calls at 29 percent, and email at 22 percent.
Scamwatch reports that the largest sums were pilfered through various scams, including investment scams ($377 million), dating and romance scams ($40 million) and false billing scams ($24 million)
Phishing scams also topped the list with ($24 million), remote access scams ($21 million), threats involving life or arrest ($13 million), identity theft scams ($10 million), employment-related scams ($9 million), online shopping scams ($9 million), and classified scams ($8 million).
A recent study found that Gen Z reported slightly lower rates of victimization from romance scams and identity theft than Millennials.
The study also indicated significantly higher victimisation percentages in those categories when compared to Boomers. Compared to Boomers, Gen Z is twice as likely to get their social media hacked
Despite being digital natives, these generations find themselves more vulnerable than ever to the web’s deceptive allure. The rise in sophistication among online scammers has left them particularly susceptible.
Members of Generation Z, typically aged between 18 and 25, appear to be the most vulnerable to falling victim to these scams, with 23% of Zoomers admitting to having their personal information or money swindled when engaging with online marketplaces.
Conversely, Generation X individuals, aged between 42 and 57, stand out as the least susceptible group to being deceived by hackers on these platforms, followed by Baby Boomers at 9% and Millennials at 13%.
Additionally, statistics indicate that women are slightly more prone to falling prey to online marketplace scams compared to men.
According to Natasha Innes from Compare the Market, the increasing sophistication of scams has made them challenging to detect, catching even the most tech-savvy individuals off guard.
“What we’re seeing, particularly on online marketplaces, is scammers asking for a PayID email address and sending a fake email which instructs people to either hand over money or personal information in order for a payment to be processed,” Ms Innes said.
“In many cases, they claim there’s been a problem with the payment and that the person needs to verify information to receive it.” she said.
Several factors contribute to their vulnerability. Growing up in a digital world has given Gen Z and Millennials a false sense of security. Scammers adeptly exploit the constant presence of social media, and the desire for quick rewards makes them susceptible to scams.
Lack of financial knowledge also leaves them open to fraudulent schemes, and cybercriminals employ increasingly convincing tactics.
The drama unfolds as a generation born into the information age grapples with the darkest side of the internet. Gen Z, the torchbearers of the future, and Millennials, the pioneers of the digital revolution, find themselves entangled in a web of deceit that threatens their financial security, personal privacy, and emotional well-being.
As technology continues to evolve at an astonishing pace, so do the methods of these online scammers. With every click, swipe, or tap, they craft increasingly sophisticated schemes designed to deceive even the savviest of internet users.
From phishing emails that impersonate trusted institutions to fraudulent investment schemes promising quick riches, the arsenal of scams knows no bounds.
Dr Arathi Arakala is a Lecturer in Mathematics says several consumer protection agencies, including the Australian Competition and Consumer Commission (ACCC) and the Federal Trade Commission in the US, have reported a sharp increase in online scams.
“Despite these generations being more “tech savvy”, comfort with technology does not guarantee that they practice good cyber safety,” said Arakala
“Gen Z and Millennials are more risk-tolerant, curious to learn new things and open to unconventional ideas – all traits that can expose them to deceptive practices,”
“This also makes them a prime target for scammers who have become uncannily good at impersonating websites, social media profiles and organisations to extract money from their victims,” she said.
Ms. Innes’ key recommendations for avoiding scams:
- Be cautious of deals that seem too good to be true. While bargains are enticing, if something is advertised at an unbelievably low price, verify its authenticity. Consider opting for cash payments or meeting in a public place instead of making electronic payments.
- You typically shouldn’t have to send money to receive funds. Banks generally do not require you to send money to receive a payment. When in doubt, confirm with your bank before transferring any funds.
- Exercise caution when making electronic payments. Although PayID is a legitimate payment method, keep in mind that it is managed by banks and financial institutions. If something goes awry, you won’t receive an email asking for your personal details. Be wary if a buyer or seller requests your phone number, email address, or other personal information.
- Verify the credibility of the buyer or seller. It’s a good practice to ensure that the person you’re dealing with is who they claim to be. If their account is newly created, lacks profile information, or lacks a profile photo, there’s a possibility it may not be genuine.
- Scrutinise what you’re asked to download or click. If you receive a message or email that appears suspicious, contains spelling errors, or doesn’t make sense, it could be a scam.
- Report any suspicious activity. If you suspect that you’ve received a fraudulent message or have fallen victim to a scam, promptly report it to the ACCC’s Scamwatch website.
Professor Asha Rao a Professor within the School of Science at RMIT University and a listed cybersecurity expert says many young people are trying to make ends meet or save money for a home deposit and are finding ways to make extra money through task-based, work-from-home jobs such as data entry or content creation.
“Younger people are also more exposed to online scams as they are more likely to dip their toes into new, foreign technology,”
“For example, cryptocurrency investments and payments have a high participation rate from younger audiences but are still highly unregulated by governments,” said Rao.
Today’s scammers are not just tech-savvy but also adept at social engineering, continuously refining their tactics to exploit psychological vulnerabilities across age groups.
Dr Abebe Diro a lecturer at RMIT University’s School of Accounting, Information Systems and Supply Chain said, “You would assume that younger generations, especially Gen Z with their digital familiarity, would be less susceptible to such scams. Yet, they often find themselves as prime targets.
“Their deep-seated comfort with technology can sometimes lead to overconfidence, causing them to overlook potential threats,” said Diro
“Having grown up in a predominantly digital age, many young people tend to have an inherent trust in online platforms, which can blind them to potential pitfalls,”
“Additionally, the culture of instant gratification promoted by many online platforms, makes young people more vulnerable to scams promising immediate rewards,” he said.
Gen Z.. Not as Tech Savvy as We Think
Recent research from Compare the Market has revealed a rather astonishing finding: individuals within the Gen Z age group are now the leading targets for scams when navigating online marketplaces.
If you happen to fall between the ages of 18 and 25, you might assume that you possess a superior level of tech-savviness and scam awareness compared to the rest of the population.
You might believe that identifying dubious marketplace schemes is something reserved for older generations, such as parents or grandparents.
However, recent findings indicate that 1 in 10 Australians who shop online have fallen victim to scams while using platforms like Facebook, Gumtree, and eBay.
Gen Z individuals now find themselves at the highest risk of encountering such scams, with a startling 23% of Generation Z reporting incidents where their personal information or money was pilfered while engaging in online marketplace activities.
This surprising data was collected by the comparison website Compare The Market through comprehensive surveys conducted in February 2023. Natasha Innes, a spokesperson from Compare the Market, suggests that scams are becoming increasingly sophisticated and harder to detect.
Additionally, information from The Australian Competition and Consumer suggests that in 2022, Australians fell victim to online shopping scams, resulting in losses amounting to $9.2 million
“Gen Z is the first generation that’s always had online shopping at their fingertips, and they may be more trusting than other generations,” says Ms Innes
“However, a significant portion of all age groups are falling victim to these scams every day. You may not think twice about being scammed by an online marketplace, but scammers constantly develop new tactics to catch people out,”
On a state level, Western Australians and those from New South Wales are most likely to fall victim to an online shopping scam at 13.1% and 13%, followed by Queenslanders (11.9%), Victorians (11.5%) and South Australians (8.2%).
In an age where technological prowess seemingly goes hand in hand with resilience against digital threats, a startling revelation has emerged.
Contrary to expectations, younger generations, particularly Gen Z, are increasingly falling victim to online scams. Their affinity for technology, rather than acting as a shield, has made them susceptible targets in a world rife with digital deception.
This recent data serves as a wake-up call for many members of Gen Z, reminding them to exercise caution when browsing online marketplace websites, whether they are searching for a much-needed fold-out couch or that well-worn second-hand car they have been eyeing.
It also underscores the importance of being vigilant and prudent when making digital marketplace purchases, especially when it involves sharing sensitive and confidential information.
