Young people fall for scams even more than seniors — here are the 4 most common

The stereotype of old people falling for scams is just as old as they are. Data shows that young people are even more likely than seniors to be hoodwinked, whether it’s a fake job, product, loan, or check (usually in the form of a prize or rebate).

Below are four of the biggest scams making the rounds — and how to avoid them.

But first, here are the findings: In a 2020 report, the Better Business Bureau (BBB) revealed that “younger people lost money to scammers at higher rates than older people” and “for the first time since we began publishing the BBB Scam Tracker Risk Report, people ages 18–24 had the same median dollar loss ($150) as that of ages 65+ ($150).” 

Similarly, the Federal Trade Commission (FTC) found, in a study that “44% of people aged 20-29 fell for fraud, while only 20% of people aged 70-79 did.”

Online retail scams

The most common scenario involves a customer purchasing products online but never receiving them. The BBB reported that these scams were 38.3% of overall losses. Frequency grew during the COVID-19 pandemic as more and more people relied on home delivery — often looking for the cheapest prices. 

Scammers usually sell products at abnormally low prices, no refunds, and they work to make their site or ad look as realistic as possible. One way to spot these scams is to read reviews and research the seller’s background.

Oddly enough, a large subset of this scam includes pets and products. Tons of people got quarantine pets out of boredom and loneliness. They stayed home and shopped online for everything from food to toys to cute sweaters that your pet hates (but are so worth it for the pictures). 

For a more detailed breakdown of the biggest online scams, here is a chart from the BBB:

Image via Better Business Bureau 

Employment scams

Employment scams have ranked high for many years now, and 2020 was no different. It is the second most common kind of scam and the overall median loss dropped more than $500 to $967. 

Scammers often use a “high-touch approach, spending significant time preparing elaborate setups,” according to the BBB. “For example, scammers conduct in-depth interviews via Google Hangouts and other online technologies, provide employment forms for targets to fill out, and ask their targets to perform job duties before the scam is discovered. Phony job offers often include part-time, flexible jobs that fit within the growing gig economy.”

Fake check scams

These scams require a bit of social engineering and can be perpetrated via snail mail or in person. “Fake checks might look like business or personal checks, cashier’s checks, money orders, or a check delivered electronically,” says the FTC.

The losses are significantly higher than other scams; $1,679 is the median value lost. Here’s a description of how one incident transpired in 2020:

A man approached the victim on the street by Union Square, in New York City, a crowded hub of commuters. He was well dressed in a suit and appeared confident. He said he had a check to deposit for $500 but couldn’t get access to his bank in time and needed the money quickly. He suggested that if someone else could deposit the check into their bank account, he would only withdraw $200 and leave the other $300 as a thank you. The victim was skeptical at first but the man continued to pursue him until he gave in. 

So, they entered the nearby bank together, and conducted the deposit and withdrawal togther. The victim handed over the cash ($200), the scammer thanked him profusely, and left as confidently as he came.

The check, of course, bounced.

Student loan scams

The most common student loan scams are perpetrated by false debt-relief companies. They promise to help pay off loans, usually for an upfront fee and some important information (like a social security number). The median loss is $745 and 18-29 year-olds, not surprisingly, have the highest scam rate.

Tips to avoid scams

The BBB report lists helpful tips to keep scammers away. Here’s a summary:

1. Don’t send money to people you don’t know.
2. Don’t trust people you’ve met online; you never know who is behind the screen, and definitely don’t share any personal information with them.
3. Don’t click on random links sent from unknown emails or phone numbers.
4. Make sure the website is real and secure before you buy from it (look for “http” and the lock symbol by the URL).
5. Take your time and do research. If they want you to act fast without thinking, that’s a red flag.

These scams often look like real deals; don’t believe it just because it looks nice.