The Scams Gen Z Is Actually Facing (And How They Really Work)

Gen Z doesn’t fall for scams because they’re careless or naive. They fall for scams because the scams are built inside the platforms they use every day — shopping, messaging, dating, job hunting, investing.

According to the Federal Trade Commission, adults ages 18–29 report losing money to fraud more often than any other age group, even though older adults lose more per incident. The difference is exposure: Gen Z lives where scams start — social media, messaging apps, and instant payment platforms.

What follows isn’t a quick list. These are the scams Gen Z is actually running into, how they play out in real life, and why they work.

1. Online Shopping & Marketplace Scams

This is one of the most common entry points into fraud for Gen Z, and it almost always starts with an ad.

Scammers create fake storefronts that look identical to real brands. They run sponsored ads on Instagram, TikTok, or Snapchat, often using urgency tactics: “limited drop,” “last chance,” “only a few left.” The site has a clean design, a checkout page that works, and sometimes even fake reviews pulled from legitimate retailers.

A typical scenario looks like this: you see a pair of sneakers, a hoodie, or tech accessory you’ve been wanting. The price is just low enough to feel like a deal, but not so low that it screams scam. You check out, the payment clears, and for a few days everything looks normal. Then tracking never updates. Customer support stops responding. Within a week or two, the website disappears entirely.

The FTC reports that shopping scams are the most commonly reported type of fraud among young adults, and that over 40% of these losses begin on social media.

Why does this work on Gen Z  — simply, it’s familiarity. Ads look native. Social proof feels real. And buying online is normal. The scam doesn’t feel like a scam until it’s already over.

The best protection isn’t avoiding online shopping. It’s slowing down long enough to validate:

• Check how long a site has existed
• Search the brand name plus “scam” or “reviews”
• Avoid paying with P2P apps, gift cards, or crypto

2. Phishing, Text Scams, and Fake Support Messages

Phishing used to look obvious. Now it looks like customer service.

Scammers impersonate platforms Gen Z actually uses — Instagram, TikTok, Discord, PayPal, banks, even student portals. Messages claim there’s a problem: your account will be suspended, suspicious activity was detected, verification is required.

The links lead to cloned login pages that are nearly impossible to tell apart from the real thing. Once credentials are entered, scammers immediately lock the victim out and begin abusing the account — messaging friends, changing passwords, or accessing linked financial accounts.

The Federal Trade Commission (FTC) consistently finds that younger users are more likely to interact with phishing links, especially when messages arrive via text or direct message instead of email.

What makes this effective is urgency. The scam isn’t asking for money upfront — it’s asking for access. And once access is given, everything else follows.

Real protection comes from understanding one underlying rule: legitimate companies do not ask for passwords or verification codes via text or DMs. Ever. If there’s a real issue, it will exist inside the app or website itself — not through a link someone sends you.

3. Job & Work-From-Home Scams

Job scams hit Gen Z at moments of vulnerability: graduation, layoffs, side-hustle searches, or financial stress.

Scammers post listings for remote jobs with flexible hours, simple tasks, and fast pay. The hiring process moves quickly — sometimes without interviews. Once interest is shown, the scam pivots: there’s an onboarding fee, a request to buy equipment, or a need to “verify” identity or payment accounts.

A common version involves sending a fake check for equipment and asking the victim to send part of it back. When the check bounces days later, the money is gone.

The FTC reports that employment scams disproportionately affect people under 30, and losses spike during graduation season.

What makes these scams convincing is that remote work is real now. Quick hiring doesn’t feel strange. And many young adults haven’t been through formal hiring processes enough times to recognize common red flags.

A real job does not ask for money. It does not pay through gift cards or P2P apps. And it does not pressure you to act immediately before paperwork exists.

4. Investment & Crypto Scams

Investment scams aimed at Gen Z are rarely framed as scams. They’re framed as education.

These schemes often begin on Discord, Telegram, dating apps, or social platforms. Someone positions themselves as a mentor or friend who “wants to help.” They introduce crypto, trading, or alternative investments and direct victims to platforms that look professional, but are completely fake.

Victims may see dashboards showing profits growing over time. The illusion is deliberate. Small withdrawals may even work at first — until larger amounts are deposited. Then withdrawals are blocked, fees appear, or the platform vanishes.

The FTC reports that investment fraud is now the single largest category of fraud losses, and younger adults are increasingly targeted through crypto-related pitches.

The key underlying lie with these scams is guaranteed or low-risk returns. Real investing doesn’t offer certainty. And real platforms don’t rely on private DMs or “mentors” to onboard users.

5. Romance & Emotional Manipulation Scams

Romance scams aren’t about desperation. They’re about trust.

Scammers spend weeks, even months building emotional connections through dating apps, social media, or messaging platforms. Conversations feel genuine. They share stories, routines, and future plans. Eventually, a crisis appears — travel problems, medical issues, business setbacks — and money enters the conversation.

By the time the request comes, it doesn’t feel like fraud. It feels like helping someone you care about.

The FTC reports that romance scams result in higher median losses than almost any other fraud type, and younger adults increasingly report cases that begin online.

What keeps people trapped isn’t lack of intelligence — it’s shame. Victims often delay reporting because admitting what happened feels worse than the loss itself.

Any relationship that involves requests for secrecy, money, or financial favors — especially before meeting in person — deserves a pause.

6. Peer-to-Peer Payment Scams

P2P scams exploit speed.

A message arrives from someone you know — or someone pretending to be them — asking for urgent help. Rent is due. A phone was lost. A bill needs to be paid immediately. The request feels real, personal and time-sensitive.

Once money is sent through a P2P app, it’s usually gone for good.

According to multiple consumer reports, young adults are nearly three times more likely than older adults to report losses tied to P2P payments.

The misunderstanding is assuming these apps work like credit cards. They don’t. There’s often no dispute process once funds are sent.

The safest habit is simple: verify requests through another channel before sending money. A quick call or text can stop a scam cold.

7. Account Takeover Scams

Account takeover often begins with phishing, but the damage spreads fast.

Once scammers gain access, they lock victims out and use the compromised account to scam others. Friends and family trust the account, which makes the next wave of fraud even more effective.

The impact goes beyond money — reputation damage, lost access to accounts, and emotional stress pile up quickly.

Using unique passwords and enabling login alerts doesn’t make you paranoid. It makes you harder to exploit.

8. Fake Giveaways & Influencer Scams

Scammers impersonate influencers, brands, or creators offering prizes, cash, or exclusive access.

The hook is always the same: you’ve “won,” but need to pay a fee, verify a card, or provide account details.

Legitimate giveaways do not charge winners. Period.

The FTC continues to flag fake giveaways as a growing issue tied to social media impersonation.

9. Impersonation Scams Inside Social Circles

Some of the most effective scams don’t come from strangers — they come from hacked accounts inside schools, clubs, gaming groups, or workplaces.

Scammers rely on familiarity. Seeing a known name lowers defenses instantly.

This is why slowing down matters more than being tech-savvy.

Why These Scams Keep Working

Scams don’t work because people make bad decisions. They work because they’re built to blend into everyday life — the same apps, messages, and platforms people already trust.

Most fraud today is engineered to feel routine, time-sensitive, and personal. That design is intentional. When something pushes you to act fast, keep it quiet, or skip normal steps, it’s worth slowing down. Those signals matter more than the story being told.