Scammers kick off Fire Horse year, with Millennials and Gen Z most at risk

January is a peak season for scammers aiming to lure heavy holiday shoppers looking for a quick return on their spending.

This year, scammers may have just kicked off the Fire Horse year, as 9 in 10 individuals (91%) would act in a way that could expose them to fraud, forex broker experts at BrokerChooser said in a survey.

Almost one in four also said they would simply ask the broker directly for copies of their licenses and certificates to verify a forex trading opportunity’s legitimacy, 

What’s more alarming is that over three-quarters (76.22%) of young adults between the ages of 25 and 34 claimed they are confident with spotting scams, with one in three (32.62%) even claiming they’re “very confident.”

However, when asked if given a chance they’re contacted by a new forex investment platform offering returns of 15% to 20% every month, claiming the said platform already has 2,000 investors but are just “pending regulation,” the same cohort said they’ll ask friends or family if they’ve heard of the platform, people who can just be as easily misled by scammers as well.

Over a third of these young adults even said they’d trust testimonials from “other successful traders,” with Gen Zs saying they’d be convinced to invest based on screenshots of profitable trades (19.96%) and celebrity or influencer endorsements (15.03%).

Putting them at even greater risk, Millennials (26.53%) and Gen Zs (20.21%) would go as far as testing the platform, investing a small amount.

Meanwhile, the older generation appears to be more cautious, with only 6.55% of baby boomers saying they trust such testimonials. Only 12.66% also said a “money-back guarantee” would persuade them to invest. 

“While younger adults tend to feel more sure of themselves, some are still falling for red flags like promises of unrealistic returns, unregulated platforms claiming to be ‘pending approval’, or pressure to act fast,” said BrokerChooser’s Krisztián Gátonyi.

The rise of artificial intelligence (AI) also resulted in the rise of fake websites, chatbot “advisors,” deep fake celebrities endorsing bogus schemes, which have made it harder even for seasoned investors, he added, advising individuals keen on investing to always “learn to pause and verify.” /TISG

Read also: Fraud and scams driven by generative AI are now among the biggest cyber threats in the financial sector

Featured image by Depositphotos (for illustration purposes only)