Top 5 Scams Targeting Young Adults

Adulthood is the phase where you start being more independent. But it also comes with its fair share of challenges. Aside from navigating big and stressful life changes, young adults now have to watch out for scammers

The top 5 scams aimed at young adults are 1) Impersonation, 2) Job Scam, 3) Sweepstakes or Lottery Scams, 4) Online Shopping Scams, and 5) Romance Scams. You can avoid these scams by securing your information and researching first.

Scammers know how to deceive you, whether you’re in college, starting your first job, or managing your finances. That’s why it’s important to stay informed.

Here are the top five scams aimed at young adults:

Impersonation Scams are schemes where scammers pose as someone you trust – like a well-known company, family member, or government official.

So, when they request for personal information or payment via gift card, people are likely to comply.

Other forms of impersonation scams include IRS imposters, the Grandparent scam, Fake Tech support, and Charity Scams.

Young adults are common victims of impersonation scams. Over 70% of people aged 18 to 34 said they’ve been targeted by an impersonator. Most of the targets were pressured into providing personal information or money.

Warning Signs:

• Unknown numbers, claiming to be from someone you know or an authority.
• Non-secure payment methods (e.g. gift cards, wire transfers, or cryptocurrency)
• Threats of legal action or account suspension

Scammers often lure young job seekers with job postings that promise high salaries or enticing benefits like remote work and quick hiring processes.

But during the hiring process, scammers will ask for your personal information and upfront payment for purposes like application fees or background checks.

Some people do get hired but unknowingly work as scammers for schemes like the reshipping job scam.

Warning Signs:

• Job offers that sound too-good-to-be-true
• Unnecessary requests for personal or financial information before hiring
• Payment Requests for application fees, training, certifications, or background checks

It’s everyone’s dream to win the lottery.
But what if your lottery winnings turn into financial loss?

Scammers are targeting young adults with lottery scams, exploiting the excitement over unexpected winnings.

They will say that you have won, but to claim your winnings, you have to pay a fee for shipping costs or covering taxes. They will also request sensitive information like your bank details.

Warning Signs:

• Claims of winning from contests or lotteries you never entered
• Requests for payment or personal information before receiving the winnings
• High-pressure tactics, urging you to comply quickly

Young adults are the top online shoppers in the U.S. as of 2023, accounting for 46.9% of all online shoppers.

Sadly, that's why online shopping scams are becoming more common among young adults.

Scammers create fake e-commerce sites or hijack legitimate ones. They also use social media to share ads, promoting products that are either low quality or non-existent at all.

Scammers can sell anything from trendy clothing, weight loss supplements, and electronics, to event tickets.

Warning Signs:

• Low prices for high-end products
• Poorly designed websites
• Sellers insist payment via gift cards or wire transfers

Young adults are commonly targeted with romance scams mainly because most of them use dating apps or sites.

Scammers create fake online dating profiles, using stolen photos from attractive people or AI-generated ones.

For example, a scammer used AI-generated photos of Brad Pitt to trick a woman into a fake relationship and steal $850,000.

Warning Signs:

• Refuses to meet or video chat
• Requests for money even if you’ve never met in person
• Overly dramatic stories like medical emergencies, in need of urgent funds

Here are some tips to protect yourself from these scams:

• 
  Do Your Research: Always take time to verify – be it employers, potential romantic partners, charities, and sellers before making financial decisions.
• Beware of Urgency: Remember that scammers usually pressure victims into acting without proper verification.
• Secure Your Information: Never share your personal information online so that scammers won’t be able to use it to target you. You can also opt out of data brokers that collect and share consumer data.
• Use Secure Payment Methods: Avoid making payments via wire transfers, gift cards, or cryptocurrency.
• Educate Yourself: Knowledge is power. Knowing how scammers operate will help you prepare strategies to protect yourself. So, Stay updated on common scams. You can do this by following consumer protection agencies.

Overall, scammers are constantly targeting young adults and improving their tactics.

That’s why awareness is your best defense.

If you suspect a scam, report it quickly to the Federal Trade Commission (FTC) or your local consumer protection agency.

What is the most prevalent scam call?
The top scam calls include: 1) Fake Vacations or Prizes, 2) Phishing, 3) Loan Scams, 4) Fake debt collectors, 5) Fake Charity, 6) Medical Alert scams, 7) Fake Warrants, and 8) IRS impersonation.

What is the top-growing scam?
The current fastest-growing scam is called synthetic fraud, surging by 31% in 2024. This is an attack where scammers use real personal information and AI to make more sophisticated messages or fake identities.