Gen Z and Millennials Warned of Phone Danger

Despite being known as digital natives, Gen Z and millennials are far more likely to become the victim of phone scams than their Baby Boomer parents.

That's according to a new survey from caller ID and spam blocking app Truecaller.

Younger adults, those between the ages of 18 and 44, were three times more likely to be scammed than older adults according to the 2,000-person study.

Similarly, Latino and Black Americans were two times more likely than white Americans to become victims.

"Vulnerable demographics, those who can least afford it, are being defrauded at scale," Clayton LiaBraaten, a senior executive with Truecaller, told Newsweek. "This includes young adults, seniors and various ethnic groups. We are also seeing increased fear and awareness of AI being weaponized to attack American consumers, whether it is better scripting or synthesized voices or machine learning powered data mining of social media."

Altogether, American adults lost $25 billion to phone scams in 2023, and 21 percent of the survey population admitted they had been fooled and lost money because of the pervasive scams.

"This year's findings indicate that despite all the warnings and information available, telephone fraud continues to be a major concern," LiaBraaten said. "The recent deepfake phone call featuring President Biden's voice is the latest high-profile example of the types of threats facing the everyday person.

"Those committing fraud will be able to use new technologies and social engineering to personalize their attempts in ways we haven't seen before."

Phone scams have been decreasing in success since the survey was first conducted in 2022 but LiaBraaten said consumers need to be "more vigilant than ever" as generative artificial intelligence can lead to more sophisticated scams that even tech-adept adults may not notice.

Scam victims lost $450 on average, and younger adults aged 18 to 44 lost proportionally more money, three times the amount older adults lost on average, according to the survey. This could be indicative of both young adults' experience levels with scams as well as their frequent use of phones.

"Scammers will pursue and prey upon the most vulnerable communities, which could include young adults venturing out into the real world for the first time," said LiaBraaten, adding that the Latino community was especially at risk because English is often a second language.

After being scammed, victims face both lost income and time. Of those who lost money to scams in the survey, 41 percent canceled a credit card, and 26 percent signed up for credit protection and monitoring. Experts also suggest reporting thefts to the police and contacting phone providers.

While some might be surprised to learn the younger generations were more likely to fall victim to scams orchestrated via phone, Tom Blok, the founder of Complain.biz, said younger people often find themselves misled by technology because it is much more common in their worlds.

"Being a digital native doesn't necessarily mean you're scam-proof," Blok told Newsweek. "In fact, it's kind of the opposite. Young adults are out there, diving headfirst into the digital deep end. Cryptos, online casinos, get-rich-quick courses, you name it. And yet, the contradiction persists. All that tech-savviness doesn't necessarily protect against the lure of a scam."

In crypto, for instance, he said young people often get dazzled by the promise of quick cash. Others feel a sense of FOMO (fear of missing out), scared they'll miss an opportunity to strike it big.

Blok said both the young and old alike need to adopt a healthy sense of skepticism when it comes to both phone and internet content.

"If something sounds too good to be true, it probably is," Blok said. We've got to get better at doing our homework, researching, and not just taking every glittery opportunity at face value."

James Ruotolo, senior director of financial services at data and AI company SAS, said the study reflects a shifting trend that's seeing more young people be misled instead of the stereotypical older Americans that were once preyed on. For young people in particular, overconfidence may play a role.

They already interact with and make transactions digitally and spend more time online, and fraudsters can take advantage of their "click first" attitudes.

Despite consumers falling victim to scams at a rate of 70 percent overall in SAS's recent Faces of Fraud study, 80 percent said they still would send and receive money through a website or mobile app, showing that "click first" and digital payment acceptance is likely not going away.

"While the older generations used to be the primary scam targets, millennials and Gen Z are now more at risk," Ruotolo told Newsweek. "This is in part due to their lack of general banking knowledge, how 'traditional' banking works and their overall comfort and confidence in the technology."