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31 October 2023
WICHITA, Kan. (KSNW) — For years, consumer advocates have said we should warn our parents and grandparents about scams. Now, scammers have successfully turned some of their focus to younger people — ages 18 to 24.
For the first time, the Better Business Bureau says young adults have been the hardest hit financially.
The BBB Institute for Marketplace Trust found that people ages 18 to 24 have reported a higher median dollar loss than any other age group.
The 18-24 demographic made up 6.1% of the overall reports from Jan. 1, 2022, through June 24, 2023. It is the smallest percentage of all age groups, but the financial hit for young adults was worse than other age groups.
“The median dollar amount that has been reported to the Better Business Bureau is around $200, with some scams having even more dollar loss, such as employment scams, which tend to average around $1,900 in loss if you’re a victim of that scam,” Denise Groene, BBB vice president of operations.
She said scammers see young adults as susceptible because 18 to 24-year-olds are more likely to be online and more likely to be active on social media, on platforms like Instagram and X (formerly known as Twitter).
“These scammers know this, and they’re using those platforms in order to gain trust with those young adults,” Groene said. “These scammers are using more techniques such as text messages, so if you receive an unsolicited text message, make sure that you’re taking the time to know who is behind that message before you reply.”
She said employment scams comprised about 30% of the scams targeting young adults.
Riskiest scams for 18-24-year-olds:
Employment
Online purchase
Cryptocurrency
Rental
Investment
Fake check/money order
Phishing
Romance
Advance fee loan
Credit repair/debt relief
The BBB said that about 19% of employment scams from this age group mentioned schemes involving inspecting or reshipping packages. Online purchase scams made up 29.1% of all reports submitted by 18-24-year-olds, with 81.4% reporting a monetary loss.
Young adults had more scams via online payment systems and bank account debit. The payment methods for this age group with the highest median dollar loss were wire transfer ($2,150), check ($1,500), and cryptocurrency ($1,200).
“What we’re seeing is a lot of online applications being submitted, whereas the company does not exist, the job does not exist,” Groene said.
She said the scammers post jobs that tout easy hiring, good money, and working from home. She said that draws younger adults into communicating with the scammer and submitting an application, including birth dates and possibly Social Security numbers.
The BBB says that can lead to identity theft and even getting the victim to send money to the scammers.
Groene pointed out that other age groups are also still being targeted.
She said everyone should remember the saying, “If it sounds too good to be true, it probably is.”
“Whenever you spot a red flag when you’re communicating with maybe an individual or even a business that you have found online, make sure you take the time to research that company,” Groene said. “You can do an easy Google search. You can go to BBB.org. Make sure that you know who that person is or who that business is before you provide any sort of payment information or details about yourself that could then be, in turn, identity theft.”
Other BBB tips include:
If somebody pressures you to act quickly, it’s a red flag. Extract yourself from the situation and make sure it isn’t a scam.
Never click on links in unsolicited emails or texts. Scammers pretend to be well-known organizations you trust. Go directly to your account or their official website to ensure the inquiry is real.
To report a scam, go to BBB Scam Tracker. Read the full report here.