3 Tips to Help Gen Z Spot Online Financial Scams

Given Generation Z's digital fluency, you'd think they'd be impervious to cybercrime. On the contrary, it's because these 14- to 29-year-olds live so much of their lives online that they're especially tempting targets. In fact, a 2024 survey by Deloitte found that Gen Zers were more likely than Baby Boomers to fall for a cyber scam.¹

"Digital fluency doesn't equal fraud fluency," says Kim Bailey, a senior manager with Schwab's financial crimes awareness team. "Younger individuals are very trusting when it comes to technology, and scammers excel at exploiting that trust."

The good news is cybersecurity can be learned at any age. Here are three tips to share with the young people in your life.

Scammers often use manipulation to entice their victims—including the pressure to act quickly, promises of huge returns with little risk, and an air of exclusivity or secrecy. However, legitimate financial professionals do the opposite, encouraging careful consideration, discussing risks candidly, and maintaining open and transparent business practices. "Requests to move conversations off reputable platforms, pay fees up front, or send money through unconventional means are all major red flags," Kim says.

As Gen Zers move through early-adult milestones—landing their first professional jobs, signing leases, and buying insurance—it creates opportunities for fraudsters. "Be skeptical of requests for personal or financial information early in the process, especially if communication is limited to messaging apps," Kim says. "Legitimate employers, insurers, or landlords are going to provide verifiable contact information and formal documentation." According to the BBB Institute for Marketplace Trust, employment scams were the riskiest scam type for people ages 18–34, with a median loss of $1,500 per incident² in 2024.

Kim encourages young adults to maximize the fraud protection tools provided by financial apps and institutions. In fact, many companies are investing in monitoring systems that analyze behavioral patterns and device usage to detect unauthorized activity. "You have to opt in to these," Kim says, "so make sure to enable security alerts, maintain updated contact details, and pay attention to unusual account activity."