Financial Experts: 7 Top Money Scams We See Gen Z Fall For
Written by
Cindy Lamothe
Edited by
Amber Barkley
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Financial experts and advisors have seen it all, from small mistakes to worst case scenarios, and they’ve witnessed many of their Gen Z clients make certain financial blunders — particularly when it comes to scams.
GOBankingRates spoke with Dennis Shirshikov, finance expert and head of growth at GoSummer, Brian Chasin, financial planner and CFO at Soba New Jersey, and Justin Godur, finance advisor and founder of Capital Max, to discuss the top money scams they’ve seen Gen Z fall for.
“Gen Z, with their deep integration into the digital world, is particularly vulnerable to various money scams that exploit their online presence and inexperience,” said Shirshikov.
Below, experts explain some of the most prevalent scams and ways to avoid them.
Social Media Investment Scams
These scams often involve influencers or fake profiles promoting too-good-to-be-true investment opportunities.
“They lure victims with promises of high returns in a short period, often through cryptocurrencies or Forex trading,” said Shirshikov.
Chasin warned the same. “These scams promise high returns with minimal risk through flashy advertisements and fake testimonials.”
He said they’re especially rampant on platforms like Instagram and TikTok.
Phishing and Identity Theft
Here, scammers use phishing emails, texts or fake websites to steal personal information.
“These sophisticated schemes can look remarkably convincing, mimicking legitimate institutions like banks or service providers,” Shirshikov explained.
Fake Job Offers
With the rise of remote work, fake job offers have become rampant. According to Shirshikov, scammers post enticing job ads, often requiring upfront fees for training or equipment, or they collect personal information under the guise of a job application.
Chasin has also noticed this trend. “Scammers target job seekers with fake job offers that require upfront payments for supposed training materials or background checks.”
Scholarship and Grant Scams
These scams prey on students looking for financial aid, offering guaranteed scholarships or grants in exchange for a fee.
“Scammers pose as legitimate organizations to steal personal information, often through emails, text messages or phone calls,” said Chasin.
Online Marketplaces and Auction Scams
Shirshikov pointed to platforms like eBay and Craigslist, where fraudulent sellers post high-demand items for sale at low prices but don’t send you the item when they’ve received payment — they just disappear.
Chasin has witnessed the same. “Fraudulent e-commerce sites or sellers offer products at unrealistically low prices, often delivering counterfeit goods or nothing at all.”
Student Loan Forgiveness Scams
Another top money scam involves student loan forgiveness.
“Scammers offer fraudulent student loan forgiveness programs in exchange for upfront fees or personal information,” said Chasin.
‘Get Rich Quick’ Schemes
According to Godur, one prevalent scam is the “get rich quick” scheme, often masquerading as an investment opportunity in cryptocurrencies or stocks.
“These scams promise high returns with little effort but end up draining their savings,” he said.
Advice for Protecting Yourself From Money Scams
Chasin advised staying informed about common scams and staying updated on new tactics used by scammers. “Always question unsolicited offers and verify their legitimacy before taking any action.”
When in doubt, he recommended seeking advice from a certified financial planner or trusted financial advisor.
Godur offered similar advice: “To protect themselves, Gen Z must develop a critical mindset towards online offers that seem too good to be true. They should always verify the legitimacy of any financial opportunity by doing thorough research and consulting with a trusted financial advisor.”
Moreover, he said being cautious about sharing personal information online and using strong, unique passwords for accounts can significantly reduce the risk of falling for phishing scams.
Verify Investment Opportunities
You should always research the legitimacy of any investment opportunity.
“Verify the credentials of the investment firm and consult a financial advisor,” said Chasin. “If it sounds too good to be true, it likely is.”
Avoid Phishing Traps
Never click on links or provide personal information to unsolicited contacts.
“Always verify the sender’s identity by contacting the organization directly using official contact information,” Chasin advised.
Research Job Offers
Another vital piece of advice is to investigate the company thoroughly before accepting any job offer.
“Legitimate employers will never ask for money upfront,” Chasin noted.
He recommended using reputable job search platforms and verifying job listings through official company websites.
Shop Wisely Online
Shop only on reputable websites and check for secure payment methods, Chasin said. “Look for reviews and ratings of the seller before making a purchase. Avoid deals that seem too good to be true.”
Verify Loan Forgiveness Programs
Chasin urged Gen Zers to contact your loan servicer directly to discuss legitimate repayment and forgiveness options.
“Be wary of unsolicited offers for loan forgiveness,” he said. “Research government programs on official websites like studentaid.gov.”
The Bottom Line
“My best advice for Gen Z is to educate themselves continuously about financial literacy,” said Godur.
Overall, he said understanding the basics of how investments work, recognizing the red flags of scams and knowing the importance of secure online practices can go a long way in safeguarding their finances.
“Always remember, if it sounds too good to be true, it probably is,” he said. “Staying informed and skeptical is your best defense against these modern-day scams.”
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