Young adults lose more money to scams than older adults, report says. How to spot one

Scammers are targeting young adults – and taking more of their money, recent data suggests.

For the first time, people ages 18-24 reported losing more of their earnings to scams compared to older adults, according to a report by the Better Business Bureau’s Institute for Marketplace Trust.

The median dollar loss among young adults was US$200, about US$50 more than median losses reported by adults 25 and older, data shows. People ages 55-64 had the lowest reported median dollar loss at US$123.

The study, published in October, examined “scam types, tactics and trends” based on data reported to the BBB’s Scam Tracker from Jan 1, 2022, to June 24, 2023. It found that young adults were most impacted, despite reporting just 6.1% of all the scams reported during that time frame.

Compared to other age groups, those ages 18-24 also reported fewer scams that led to monetary loss with the exception of people 65 and older, according to the study.

‘The money was gone’

Consumers reported falling victim to a variety of scams, but experts say employment scams remain the riskiest for younger adults.

Data showed work-related ripoffs accounted for nearly 30% of all scams reported by this age group and had the highest median dollar loss of all scam types at US$1,819.

“About 43% of employment scams reported by this age group included a mention of fake check scams,” Melissa Lanning Trumpower, executive director of the BBB Institute, said in a news release. “Many reported being told to deposit checks into their accounts and then transfer funds to a vendor to pay for training or office equipment. By the time they realized the check was bad, the money was gone.”

Online purchases, cryptocurrency, and rental scams were also among the riskiest scams for people 18 to 24 years old, data shows.

The BBB Institute said scammers were more likely to contact this age group via text or over the Internet. It reported a higher number of scams targeting young adults on X, formerly known as Twitter, and Instagram, than other age groups, the report said.

People ages 18-24 reported using online payment systems, including digital wallet apps, when they fell victim to a scam, according to the report. Other common payment methods included credit and debit cards.

How to spot a scam

There are a few general rules when it comes to protecting yourself against scammers, according to the BBB Institute. They include:

• If something sounds too good to be true, it probably is.
• Scammers will often pressure you to act quickly. Don’t fall for it.
• Don’t share sensitive information with anyone, especially those who initiate the contact.
• Do your homework and check multiple sources. – The Charlotte Observer/Tribune News Service