PYMNTS | Further dispelling the misconception that scammers are most likely to target older adults, research shows that it’s no longer the case.

Younger, affluent, college-educated consumers now face the highest scam exposure, according to research from PYMNTS Intelligence and Block.

Millennials show scam exposure of about 24%, followed by Gen Z at 22%, compared with just 14% among baby boomers and seniors.
College-educated consumers record an exposure rate of 22% versus 18% for those without a degree.
Higher-income households experience fake marketplace and identity theft scams more often, likely because their accounts hold more money or they engage in more online activity.
Channel exposure also differs: More younger consumers encounter scams via social media, whereas phone and email are still standard among older consumers.

The Current Scam Environment

According to the report, more than 80% of scam incidents involve some form of impersonation, and nearly two-thirds of victims send funds within 24 hours. Three of the categories dominating the scam environment include:

Identity theft: Scammers use stolen or synthetic identities to open accounts or initiate transfers.
Fake debt collection: Targets send messages about non-existent debts, demanding payment for alleged past-due balances.
Fake e-commerce marketplaces: Ads lure shoppers into enticing deals, then fail to deliver goods or redirect payments. Fake platforms are especially attractive to consumers looking for deals or shopping for unfamiliar brands.

Social and commerce platforms that don’t do stringent seller or merchant verification may enable shady actors posing as legitimate merchants. “Commerce platforms and payments providers that fail to implement robust seller-onboarding (know your business, or KYB) and buyer-verification (know your customer, or KYC) procedures expose themselves and their users to heightened risk,” according to the article.

Full article: Scammers Target Holiday Shoppers Through Fake Marketplaces, Identity Gaps