Gen Z's High Rate of Falling Victim to Cybercrimes Explained
In the rapidly evolving digital landscape, a growing concern is the rise of financial scams targeting Generation Z, a demographic that includes tweens, teens, and twenty-somethings. This age group is the most susceptible to digital financial fraud worldwide, due in part to their increased online activity and a false sense of security.
The UK government has responded to this issue by making changes to the Online Safety Bill. This legislation will enforce a legally binding duty on social media platforms, search engines, and messaging services to prevent paid-for fraudulent ads from appearing in their services and to act swiftly to remove them.
Across the Atlantic, the U.S. Federal Trade Commission (FTC), the Consumer Financial Protection Bureau (CFPB), and the Financial Crimes Enforcement Network (FinCEN) are actively working to protect Generation Z from financial fraud. They do this through education, regulation, and enforcement initiatives.
In Australia, the Australian government is taking proactive measures as well. They are developing a SMS registry to block fraudulent texts and have established a new anti-scam center as part of the Australian Competition and Consumer Commission (ACCC). Additionally, the Australian Banking Association launched a digital Fraud Reporting Exchange (FRX) platform in May 2023.
The vulnerability of Gen Zs to digital fraud is also being addressed by companies such as Sandstone Technology. They are working towards using AI for fraud prevention in digital banking solutions and offer solutions with in-built features to protect end users from fraud. Their mobile app boasts advanced fraud protection, including multi-factor authentication and integrations with trusted identity and verification providers.
Despite these efforts, the statistics are concerning. In the UK, 18 to 24-year-olds are more likely to be targeted in an impersonation scam than other age groups. In Australia, 23% of 18 to 25-year-olds surveyed had given up personal information or had their money swindled using social media and online marketplaces.
The financial losses due to these scams are substantial. Australians lost more than $3.1B to scams in 2022, a 80% increase from 2021. Banks in the UK are forced to reimburse customers for scam losses unless they have acted fraudulently or with gross negligence, and sending and receiving banks share the cost of reimbursing scam victims.
One reason for the vulnerability of Gen Zs to digital fraud is that scams are being actively tailored to them, with 'social engineering' techniques used to groom and manipulate them into transferring money or divulging personal and financial details being constantly refined.
To learn more about Sandstone Technology's security features and how they can help protect you, contact them directly. It's crucial for Gen Zs to be aware of the risks and take steps to protect their digital wallets. Education, regulation, and technology all play a role in this ongoing effort.
Read also:
- Emergency services of the future revealed by Renault with the introduction of the Vision 4Rescue vehicle.
- SonicWall executive Michael Crean discusses the current state of managed security
- Companies exercise prudence towards AI adoption, ensuring secure implementation: Exploring safeguards and strategies.
- Stolen Brain Data of Sinner and Leclerc (Yellow chroma), previously held in China, repurposed for military training purposes.
