02/26/2024

Why Gen Z is so Susceptible to Financial Scams

They fall for social media scams

Last week, the internet reacted in horror at the story of how a financial-advice columnist at The Cut lost $50,000 in a scam; however, for many young adults, the tale may be uncomfortably familiar.

While younger, digital savvy folks may be adept at using the internet, Generation Z—born between 1995 and 2012—is more than three times as likely to fall for online scams compared to Baby Boomers, per a 2023 Deloitte report.

Experts say part of the reason for that is scams are often tailored to the younger generation—more than half of which spends an average of at least four hours on social media daily. "Older generations are going to [fall for] standard phishing schemes through email, or where they get you on the phone and tell you that your children and grandchildren are in trouble," said Jonathan Swanburg, president of TSA Wealth Management. "The younger generation may just see an ad on Facebook, or Instagram or TikTok for some investment that's going to pay you 10 percent a month with no risk."

Please select this link to read the complete article from TIME.