While Gen Z might have grown up immersed in technology, they are now the number one target for extortion scammers, according to a new report.
In Malwarebytes’s new Mobile Scam Report, Gen Z was deemed the top extortion target, with 28 percent of the age group experiencing extortion scams. This was far higher than both Gen X and baby boomers, at 15 and 7 percent, respectively.
Why It Matters
Extortion scams are criminal schemes where the fraudster attempts to blackmail a victim for money or personal information.
While scammers might threaten physical harm, the digital age has ushered in a new type of scammer, with many targeting younger people with threats of releasing sexually explicit photographs or videos to the world. They also may claim to be the police, requesting money or personal data if the victim wants to avoid arrest.
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What To Know
In 2023, the FBI reported 48,000 extortion victims, a 22 percent jump from 2022, and many of the victims are Gen Zers.
Those born in the generation—from 1997 to 2012—were more likely to encounter extortion scams than older age groups. Roughly 58 percent of Gen Z and 52 percent of millennials had countered an extortion scam, whereas only 35 percent and 23 percent of Gen X and boomers had, according to the new Malwarebytes report.
Gen Z was also much more likely to actually fall for the scams, with 28 percent experiencing one. Roughly 13 percent of these scams were virtual kidnapping, while another 13 percent were attributed to deepfakes. Sextortion cases made up 11 percent.
“The woman asked for a small amount of money which I was reluctant to give, but she harassed me, so I decided to,” one Gen Z survey respondent said. “Then she wanted to send me money to send to her friend. I accepted the money, but then alarms went off and I never sent it to her friend. I later learned about money mules. She then threatened to kill me because I had taken $1k when she only got $300. I then blocked her and called the police because I was scared.”
Much of the higher risk for Gen Z and millennials comes down to how they use their digital devices. By sharing personal data with apps and websites, fraudsters are able to more easily target them.
“This isn’t a Gen Z problem – it’s a societal and political failure,” Bryan Driscoll, HR consultant who specializes in generational differences, told Newsweek. “Parents, schools, tech companies, and policymakers have dropped the ball. We failed to teach boundaries, privacy, or skepticism. Instead, we taught them to post everything, trust algorithms, and chase validation in likes and follows.”
Roughly 90 percent of mobile users shared deep levels of personal data with apps and websites, according to the survey. And younger users were the most permissive, with 91 percent of Gen Zers and millennials saying they grant apps access to their location, camera, photo library, and/or contacts compared to 80 percent for Gen X and older.
“A generation – and society – that normalizes surveillance, has a fractured sense of privacy, and is increasingly vulnerable to manipulation is doomed,” Driscoll said. “If we don’t build genuine protections – and it doesn’t look like we’re going to based on current federal policy proposals to explicitly ban any AI regulation for a decade – this will only get worse.”
What People Are Saying
Alex Beene, financial literacy instructor for the University of Tennessee at Martin, told Newsweek: “There’s a misconception that older Americans are most in danger when it comes to mobile scams. The reality is Gen Z finds themselves at the top of most rankings when it comes to falling for digital deception. While they may be younger and more tech savvy, Gen Z are also connected to their devices more frequently and may fall for scams based on impulse.”
Driscoll also told Newsweek: “I’m not surprised Gen Z is the top target. It’s the logical outcome of growing up with the world at your fingertips without appropriate digital literacy or regulation to match. The platforms Gen Z has known their entire lives are designed to manipulate behavior, harvest data, and reward oversharing. We’ve handed them the internet with no roadmap or guardrails and then act shocked when predators, scammers, and AI exploit that vulnerability.”
Drew Powers, founder of Illinois-based Powers Financial Group, told Newsweek: “When you first hear this, it may seem counterintuitive given that Gen Z has grown up with the Internet, social media, and mobile communications, but it actually makes perfect sense. Baby Boomers and Generation X can vividly recall the days before the Internet, and therefore we have a built-in distrust around most anonymous electronic communications. Gen Z on the other hand, is far more comfortable with and trusting of these platforms.”
What Happens Next
To lower the rate of younger Americans falling for extortion scams, an increased emphasis likely needs to be on teaching literacy for younger generations. Just because they grew up with technology does not mean they are more prepared against scams, Beene said.
“We need to quit assuming this group can navigate through digital waters because of their youth and experience with technology,” Beene said. “If anything, the younger you are, the more you need to go through training on potential scams that could target your identity and money.”
