In the rapidly evolving digital landscape, Gen Z has emerged as a prime target for scammers. It’s been reported this generation is more than four times as likely to fall for online scams compared to Baby Boomers.
It’s not simply youth that makes them targets. Gen Z’s digital identity is unique to them as compared to other generations, which creates vulnerabilities scammers can exploit. Their heavy reliance on mobile devices and early adoption of new technologies present unique risks.
Today’s fraudsters can craft more convincing phishing schemes, social engineering attacks and other schemes, all of which make Gen Z more susceptible to urgent and emotionally charged scams targeting their digital identities.
Online identity is a prized possession
As digital natives, Gen Zers — also known as Zoomers — have been immersed in technology via social media, online platforms and digital communication nearly since birth. Their online identities are fundamental to their social interactions, education and even professional aspirations. Their digital identities are deeply intertwined with their real-world identities.
The heightened importance of digital identity among Gen Z gives scammers a powerful tool for manipulation — and their smartphones are the prime gateway.
By exploiting social media profiles, digital communications and various online activities, scammers understand they can leverage the importance placed on digital identity to execute more effective and impactful attacks. Compromising a Zoomer’s digital identity can create valuable opportunities for scammers — making those identities an attractive target.
How Gen Z is targeted
Gen Z consumers spend a lot of time online: More than half (51%) reported interacting with people through their devices more than in the physical world. Plus, they’re more inclined to trust the information they see on social media. Pew Research reported U.S. adults under 30 are nearly as likely to trust information from social media sites as from national news outlets.
Their extensive time spent online and more trusting attitudes are ripe for exploitation in various ways. Just of few of these scams include:
- Fake profiles and impersonation. Phony social media accounts imitating celebrities, friends or influencers are used to gain trust and trick Gen Z targets into sharing personal information or clicking malicious links. The growing accessibility of deepfake technology has made impersonations harder to detect.
- Phishing at scale. Messages disguised as legitimate communications or promotions from popular brands encourage victims to submit personal details or click on malicious links. Layer in AI and automation and fraudsters can scale even the most hyper-personalized attacks.
- Social engineering: Emotional manipulation tactics like fearmongering or urgency can pressure victims into revealing sensitive personal information or falling for fraudulent schemes.
- Fake websites and online marketplaces. Deceptive websites offering tempting deals on trending items are used to steal credit card information or payment details when a victim attempts to make a purchase.
Ultimately, most scammers seek financial gain — which can come in many forms. Beyond making unauthorized purchases or opening fraudulent accounts, bad actors often steal information like names, birthdates, Social Security numbers and login credentials which they can sell to identity thieves. Those personal details can also enable fraudsters to take over social media or bank accounts. Additionally, they might access sensitive files and photos to blackmail victims under the threat of embarrassment and reputational damage.
When Gen Z’s digital identities are compromised, the consequences can be particularly severe due to the interconnected nature of their online lives. The scale and speed of these repercussions can be vastly accelerated, making the aftermath of an identity breach more difficult to manage.
Gen Z expects all companies to help fight fraud
Consumers are increasingly wary of fraud and identity theft, and place greater responsibility on businesses and communication service providers (CSPs) to safeguard their personal information. Consumer research by TransUnion revealed mobile phone carriers are seen as the primary line of defense against mobile fraud across all age groups. This trend is particularly pronounced among Gen Z consumers who expect their carriers to play a pivotal role in protecting them from these cyber threats. The research showed younger consumers experience fraud attempts more frequently than other age groups.
TransUnion’s research discovered caller ID verification, reverse phone lookups and free identity/credit monitoring services were the top three fraud prevention services Gen Z consumers want their mobile service providers to offer. That implies there are robust opportunities for telcos to differentiate themselves by offering fraud protection offerings tailored to the distinct needs of younger customers.
Cultivating loyalty with Gen Z
Gen Z’s unique characteristics make them both a challenging and fascinating market segment. And while they’re not known for brand loyalty, their collective digital-first mindset and deep understanding of the importance of identity present opportunities for CSPs.
By delivering high-quality services that address Gen Z customers’ distinct vulnerabilities and concerns, CSPs can strengthen their relationships and build loyalty over time.
