Reliance on Smartphones Makes Gen Z a Prime Target for Scammers

Gen Z consumers have emerged as favorite targets for today’s digital fraudsters and scam artists. Though digital natives might be expected to be more wary of online threats, Gen Z is reportedly four times as likely to fall for online scams as Baby Boomers. Yet, youthful inexperience isn’t what’s putting Gen Z consumers at risk — but rather a unique attachment to both their devices and digital identities.

Gen Z consumers, who are also known as Zoomers, face a range of threats due to their tech-forward lifestyles. Their reliance on mobile devices and adoption of new technologies create unique vulnerabilities criminals are adept at exploiting. As a result, cybercriminals and scammers are creating ever more convincing phishing messages, social engineering tactics and other attacks targeting digital identities of Gen Z.

Online identities are fundamental for Gen Z

Having grown up using technology, their appreciation and enthusiasm for technology — from social media and online platforms to digital communication and peer-to-peer payment apps — has surpassed previous generations. Their digital identities, which are central to their social, educational and professional lives, are as fundamental as their real-world identities.

Considering how critical their digital identities are to their sense of well-being, it’s little wonder scammers can leverage them to manipulate and take advantage of Zoomers — exploiting digital communications, social media, games and other online activities. As a result, mobile devices are often the primary attack vector for targeting Gen Z.

Social engineering exploits trust to target Gen Z

The importance of Gen Z’s digital reliance is tough to overstate. Approximately half (51%) of Gen Z consumers surveyed said they interact with people through their devices more than in the physical world. In addition, they trust information they find on social media more than other sources. In fact, adults under 30 trust information from social media sites at roughly the same rate as established news sources.

Given their trust in digital resources and the amount of time they spend online, Zoomers are uniquely susceptible to misinformation and scams. Using a variety of social engineering techniques, criminals can get the information they want using a number of schemes, including:

• Phishing and smishing. Sending texts, direct messages (DMs) or emails that are practically indistinguishable from legitimate communications from trusted individuals or companies continues to be an effective way of getting Zoomers to share information, send payments or visit a malicious website. Greater accessibility to generative AI (GenAI) tools is making these attacks increasingly convincing and harder to recognize.
• Impersonation attacks. By using phony social media accounts, scammers can pretend to be friends, family members, online influencers or even celebrities to trick victims into divulging personally identifiable information (PII), sending money, clicking malicious links or opening infected attachments. Again, easy access to GenAI and deepfake technologies make these attacks increasingly more difficult to detect.
• Fraudulent websites and online retailers. Scammers will create fake websites touting amazing promotions and deals on popular products, and these sites can be indistinguishable from legitimate sites. Unwary consumers looking for a bargain will then enter their credit card data and personal details, handing criminals valuable and profitable information.

PII purchased on black markets empowers identity thieves

While using stolen credit card and payment details to make unauthorized purchase can generate a quick profit, cybercriminals can also sell their victims’ personal details. Stolen PII, such as names, birthdates, Social Security numbers and login credentials are frequently purchased by identity thieves who combine those real details with fake info to create a synthetic identity. They can then use the synthetic identity to open fraudulent loans and commit other financial crimes.

Stolen personal details can also be used to take over a victim’s social media accounts — exposing them and their network to potential fraud, and opening the door to reputational damage.

Compromised PII can result in particularly profound consequences for Zoomers. The interconnectedness of their digital lives means the impact of stolen data can be quickly amplified, making it difficult to contain and manage the repercussions.

Zoomers expect mobile providers to protect them

All consumers, including Gen Z, understand the risks fraud and identity theft pose to them. That said, they expect the companies they do business with to help protect their personal data. This is particularly true of communication service providers (CSPs). Our research revealed mobile providers are ranked as a primary line of defense by consumers. In fact, that expectation jumped 27% from 2023 to 2024.

Interestingly, previous research showed this expectation is especially pronounced among Gen Z consumers. Caller ID verification, reverse phone lookups and identity/credit monitoring services were the top three protective services Gen Z consumers want their mobile providers to offer.

Cultivating loyalty with Gen Z

The cyber habits of Gen Z consumers may create unique challenges for CSPs, but  their digital-first attitudes, trust in new technologies and reliance on mobile devices still make them a critical market segment. They clearly seem aware of the digital threats they face and expect their mobile providers to help.

CSPs willing offer the protective services Zoomers want most can capitalize on opportunities, differentiate their businesses and deepen relationships with this key consumer group.

For more insights into how CSPs can create opportunities with Gen Z, read our recent eBook Converting Gen Z Expectations Into Opportunities for CSPs.