For many, the internet is a big part of their everyday lives, especially for Generation Z. A lot of people in this age group — ages 12 to 27 — spend an average of four hours a day consuming social media. They’re quite comfortable online, maybe a little too comfortable. This makes them vulnerable to scams tailored to their consumption habits.
Whether you’re a young adult and spend a lot of time online or an older consumer who still logs some hours in the virtual world, here are some facts and common scams you need to know about.
Younger Generation is More Vulnerable
A Deloitte survey shows Gen Z’ers are at least three times more likely to fall for online scams than Baby Boomers. They’re also twice as likely to have their social media accounts hacked. While older adults typically fall prey to scams via phone and email, fraudsters tailor their pitches to the younger generation through Facebook, Instagram, TikTok and other online platforms. The scams range from fake websites and social media ads to phishing and social media impersonations.
Here's one scam that is gaining ground online.
The Brand Ambassador Scam:
- Initial Contact: Scammers reach out to you using a social media platform, often through direct messages. They butter you up by claiming you have the perfect look or style to be a brand ambassador for their company, which they claim is up-and-coming or
well-established. - Flattering Offer: The scammer then offers you a chance to become a brand ambassador, which includes promoting products on their social media accounts. They promise exposure, free products and sometimes monetary compensation once a certain level of sales is reached through a promo code they provide.
- Purchase Requirement: To become an ambassador, you’ll need to purchase a “starter kit” or some of the brand’s products. The scammer insists this purchase is necessary to show commitment or to have the products for promotion.
- High Costs and Low Returns: The products or starter kits are often overpriced. Once the purchase is made, the promised support, free products and compensation fail to materialize. The promo codes provided t typically offer simple discounts, and sales generated through these codes seldom result in any significant earnings.
- No Real Brand Exposure: The exposure the scam promises are virtually non-existent. The brand may not be trustworthy or well-known, and the promised audience and engagement are often exaggerated or completely fabricated.
Why It Works:
- Lack of Experience: New influencers might not have enough experience or knowledge about how legitimate brand partnerships are supposed to work.
- Desire for Growth: The desire to grow their personal brand and social media presence can make them vulnerable to such scams.
How to Avoid This Scam:
- Research the Brand: Review the company’s background, online presence and reviews from other influencers.
- Beware of Upfront Costs: Legitimate brands won’t require brand ambassadors to purchase products upfront as a condition of partnership.
- Seek Transparency: Real brand deals will provide clear, upfront details about expectations, compensation and the nature of the partnership.
- Consult with Experienced Influencers: Getting advice from experienced influencers can provide insights into what legitimate brand deals look like.
If you’re an aspiring influencer, avoid falling victim to such scams and focus on building real partnerships with brands you believe in.
Online Phishing Schemes
Although the tactics may change a little, phishing scams are alive online. These scams try to get personal information like your passwords, credit card numbers and personal details through fake emails or text messages. These scams often seem to come from real sources, like banks or well-known companies and have links that lead to fake websites to steal your information.
Online Marketplaces or Ads
Another common scam to avoid is fake online marketplaces or classifieds, where fraudsters advertise non-existent products or services to lure victims into making payments. These scams exploit the trust you may place in online platforms and eagerness to find deals or purchase unique items. Unfortunately, after making the payment, victims often discover that the promised goods or services never materialize, leaving them financially disadvantaged and without recourse.
Guarding Against Online Scams
It’s critical to stay informed about the latest scams and their tactics. Simply employing basic precautions, such as verifying the legitimacy of websites before making purchases or being wary of unsolicited messages requesting personal information, can significantly reduce the likelihood of falling victim to cybercrimes.
To learn more about scams visit our fraud and security center.