Why young adults can be targets for scams

For many teens and 20-somethings, the beginning of college or a new job signals a fresh start. Unfortunately, while young adults move on to the next chapter of their lives, they can be prime targets for scams. Whether your teen or young adult is using a dating app, applying for a new job, or trying to help a friend in need, reviewing these tips beforehand can be a great way to help them understand and avoid some of the most common scams.

Scam #1: Sextortion

According to data made available in the FBI’s 2024 Internet Crime Report, extortion is the leading type of cyber-crime reported by victims under the age of 29, with more than 20,000 cases having been reported.^Footnote1 Under the wide umbrella of extortion falls the specific crime of “sextortion,” in which a predator threatens to share the victim’s private content online unless their demands are met.

Rodnée Warr, Business Execution Senior Manager for Wealth & Investment Management, Wells Fargo Clearing Services, says the threat of sextortion is more prevalent than ever because young adults are constantly online. For some young people, this may look like gaming; for others, it means signing up for a dating app or meeting strangers online via TikTok, Instagram, etc.

“Sometimes these encounters quickly turn into a romance, which then goes south,” Warr says. “Ultimately, young adults need to pay more attention to the information they share online. If your new friend is suddenly interested in all the same things you are, that is likely a bad sign.”

With the consistent growth of AI, fake identities can be created easily and phony messages can then be sent. Once the conversation moves to a legitimate communication tool like Google Chat or WhatsApp, that is when private content is transmitted and ultimately used against the unsuspecting victim, typically for monetary gain.

To help avoid sextortion scams:

• Report the predator’s account via the platform’s safety feature and block the predator from contacting you.
• Save screenshots of the illegitimate profile and their messages, then provide those to law enforcement and the FBI.
• Be suspicious if someone asks you to send payments in gift cards or cryptocurrency.
• Talk to a trusted adult about any new online relationships.
• Use a reverse image search to determine whether profile pictures are legitimate.

Scam #2: Cryptocurrency

Cryptocurrency, or crypto, is a type of digital currency that is typically only available in electronic formats. Some of the most common types are Bitcoin and Ether, but new ones are being created daily, which can add to the general confusion surrounding this topic.

Furthermore, crypto transactions typically do not have any legal protections, cannot be reversed, and are not as anonymous as many people believe. These reasons are why, when using time-tested methods for scamming their victims, predators often demand payment in crypto rather than credit cards, gift cards, PayPal, etc.

To help avoid cryptocurrency scams:

• Don’t trust people who promise quick-turn profits or larger-than-life returns.
• Be wary of anyone demanding crypto for payment, especially over text, email, or social media. And do not click on any links they send you.
• Never take investment advice from someone on a dating app or someone you’ve only just met online.
• Ignore (and report) any so-called investment managers who contact you out of the blue.

Scam #3: Identity theft scams and data breaches

According to the Federal Trade Commission (FTC),^Footnote2 teens and 20-somethings are the most likely of any age group to experience and report a fraud, with roughly 44% of 20-somethings reporting a financial loss due to fraud. Young adults are also active on social media and tend to share personal information, often on third-party websites or through quizzes that may capture and use this information to steal your identity. In addition, college students’ Social Security numbers and other identifiable information may be viewable on university transcripts, registration forms, or student ID cards, which could end up in the wrong hands.

To help avoid identity theft scams:

• Remember that school mailboxes are not always secure, so have sensitive mail sent to a permanent address, such as a parent’s home or a post office box.
• Do not loan your credit or debit card to anyone, even a roommate or close friend.
• Store Social Security cards, financial documents, and unused credit cards in a secure location.
• Shred unwanted credit card offers and other sensitive paper documents before discarding.
• Switch to paperless options for financial statements.
• Review your credit report at least once a year to look for unauthorized accounts that are opened in your name. Receive a free credit report once a year from each of the three major credit bureaus at www.annualcreditreport.com.
• Consider freezing your credit with all three credit bureaus if you’re not actively applying for credit.

If you believe your account has been compromised, contact your bank immediately.

Scam #4: Job scams

Many college students reported being scammed after responding to job opportunities by email or social media, according to the FTC.^Footnote3 Scammers may claim to be recruiters for corporate companies. You are invited to apply for a job that offers short hours, remote work, and a nice salary. After the interview, there’s paperwork that requires your personal information, which is their way to steal your identity. The recruiter may even provide a check to buy supplies for the job and request you send back the leftover funds from your account; this is known as a fake check scam. By the time you realize the check is fake and bounces from your account, you’ve already sent funds from your account.

To help avoid job scams:

• Do not provide an up-front payment, bank account information, or other personal details. Verify the job offer by contacting the company directly once you’ve confirmed that the phone number is authentic. Don’t call the phone number given by the recruiter.
• Check the recruiter’s email address and visit the company’s website. Corporate employees’ emails should come from a company address, not personal emails like @gmail.com. If the company’s website doesn’t have the job posted, that’s a red flag.

If you believe you have been a victim of a job scam, report it to the FTC.

Scam #5: Online payment scams

Today, online payments allow individuals to electronically send funds from a bank account directly to another person or organization. When sending money, online payments can be fast and simple with available payment services. While these options are convenient, they are also attractive targets for online payment scams because the money is often impossible to retrieve.

Scammers may pose as the IRS, a utility company, tech support, a real estate company, or even a friend or relative who reaches out and “needs help.” The common thread in these scams is that they often demand immediate payment. By forcing someone to act quickly, they are less likely to question the request.

When receiving an unexpected text, email, or voice message requesting a payment, do not reply, click links, or call phone numbers included in that communication. Instead, contact the person or organization directly using existing contact information to confirm the source of the request.

Some examples of online payment scams to avoid:

• Imposter scams involve a scammer who poses as someone you trust and demands a fast payment using online payment service, a wire transfer, a money transfer company, or cryptocurrency.
• Refund scams occur when a scammer acts as if they owe you money and pretends to send you a higher, incorrect “refund” amount. They then ask that you return the “overpayment” using an online payment service.
• Payment app scams involve a text or email that ask you to confirm a large, fake payment. If you reply to the message, the scammer may call you back and pretend to be a bank representative.

Remember: Gift cards or prepaid credit cards should never be used for payments — such requests are clear signs of a scam.

Learn more about common scams and steps you can take to help avoid them at our Security Center.

1. Internet Crime Report, Federal Bureau of Investigation, 2024

2. Consumer Sentinel Network Data Book 2023, Federal Trade Commission, February 2023

3. “Job Scams Targeting College Students Are Getting Personal,” Federal Trade Commission, December 2023