New consumer research reveals that four out of five Gen Z and Millennial Aussie scam victims would share their experiences if it meant helping others.
Consumer research commissioned by digital bank, ubank, has revealed nearly three in ten young Aussies reported that they had “been personally scammed, with online and marketplace shopping scams being the most common.”
The research, which comprised “a nationally representative sample of Australian Gen Z and Millennials (aged 18-43), found that online and marketplace shopping scams topped the list among scam victims at 46 per cent, followed by investment scams (21 per cent) and phishing scams (20 per cent).”
When comparing the two generations, the research found “that Gen Z more commonly fell victim to online and marketplace shopping scams (51 per cent versus 44 per cent) compared to Millennials.”
Millennials, on the other hand, were “more inclined to fall victim to technical support scams (15 per cent) compared to only eight per cent of Gen Z.”
Two in three young Aussies (Gen Z and Millennials combined) reported “typically being exposed to potential scam attempts at least once a week. Seven in ten (71 per cent) admitted they might struggle to spot a scam versus what’s legitimate.”
Text messages (68 per cent), emails (57 per cent), and phone calls (56 per cent) remained the most common scams young Aussies “either saw or received in a typical week.”
However, social media (34 per cent) and online marketplaces (27 per cent) were “also common places young Aussies were exposed to scams on a weekly basis, and considering the above research, this indicates these two channels are catching younger Aussies out.”
ubank’s Head of Fraud, Jacob Donohue, said:
“Gen Z is the first generation to grow up with online shopping at their fingertips. However, we’re seeing scammers get smarter and develop new tactics to target even the most digitally-savvy of customers on the platforms that they use frequently. Always be vigilant when purchasing or selling anything online.
Donohue said that as a digital bank supporting the needs of younger Australians, ubank sees first-hand the devastating impacts scams can have.
Other actions ubank has taken includes “removing links in unexpected text messages, working with telcos to stop phone spoofing scams, and strengthening its fraud team.”
The bank has added features like payment holds “on risky transactions, warnings for new payees, and blocks payments to some high-risk cryptocurrency platforms.”
It also educates its customers on social media “about the latest scams impacting them.”
The research also found the vast majority (82 per cent) of Gen Z and Millennial scam victims would be willing “to share their experiences about being scammed with others if it meant helping the broader community, which aligns to this year’s Scams Awareness Week campaign theme of ‘Share a story, stop a scam’.”
Jacob Donohue’s top tips to avoid online marketplace and shopping scams:
- If the deal is too good to be true, it probably is. We all love a bargain, but if it’s advertised at a ridiculously low price, ensure it’s a legitimate post.
- You don’t need to send money, to receive money. If someone asks you to send money to receive a payment, that’s a red flag. Further, if someone claims to have paid you, check if the money has entered your account. Remember, banks won’t ask you to move money to a different account. If you’re unsure, verify with your bank by contacting them on their official number before sending any funds.
- Be cautious of paying electronically. These days, it’s standard to share mobile numbers and email addresses to support payments, for example through PayID. However, once funds have been transferred online, they often can’t be recalled or reversed. Always do your due diligence, and where possible, view an item in person before paying.
- Check that the buyer or seller is legit. It doesn’t hurt to verify that the person is who they say they are. Red flags include new accounts, no profile information or no photo. If you’re shopping online, look out for strange website addresses too, as scam sites may use a similar but different address to the real company.
- Don’t click on the link. If you receive a message or email that seems a bit off, be extra vigilant and don’t click on a link or download an attachment.
- Report any scam activity ASAP. Contact your bank or credit card company immediately if you think your details have been compromised, as they may be able to freeze accounts or stop unauthorised transactions. If you think you’ve received a fraudulent message or fallen victim to a scam, always report it to the ACCC’s Scamwatch website.
About the research
All figures, unless otherwise stated, are from YouGov.
Total sample size was 1311 adults. Fieldwork was undertaken “between 31 May – 6 June 2024. The survey was carried out online.”
The figures have been weighted and are representative of “all Australian Gen Z and Millennials (aged 18 to 43).”
