There is a belief that seniors are the victims of most scams, but scams affect people of all generations. In fact, data from the Federal Trade Commission (FTC) indicates that millennials are 25% more likely to report losing money to fraud than those over 40. However, the types of scams that ensnare millennials are not the same as those targeting seniors.
There are three key differences highlighted in the FTC data: the types of frauds, the methods of first contact, and the amounts of the losses.
The top five types of frauds affecting millennials are online shopping frauds, business imposters, government imposters, fake check scams, and romance scams. Older consumers report the same types of scams, but millennials appear to fall prey to them more often. Millennials are twice as likely as those over 40 to report being victimized by online shopping scams. They are also more likely to report scams related to debt relief or money-making opportunities. Millennials are 93% more likely than those over 40 to report falling for a fake check scam.
Phone calls are the most frequent method of initial contact for fraud victims of all ages. Millennials lost money to phone scams at a slightly lower rate than those over 40. However, millennials are 77% more likely to report losing money to a scam that began with an email.
Even though younger people were more often victims of scams, average losses for older victims were higher. The median loss for victims in their 20s was $400, while the figure for those in their 70s was $621. Those over 80 had the largest median loss of $1,021.
Why did younger consumers have more losses? The FTC points out a few reasons. First, younger consumers are more likely to share personal information online, making them vulnerable to fraud. They also tend to assume that others are at greater risk of being scammed than they are, so they are less cautious. And, despite the common perception that older people are easily scammed, Monica Vaca of the FTC says, “Older consumers are doing a really good job recognizing fraud when they encounter it. They’re taking the next step to warn other people about it.”
The clear message? It is important to beware of scammers no matter your age.
