The Financial Scam Divide: Why Gen Z Loses More Often While Seniors Lose More Money

We tend to think of older adults as being the primary victims of scams, while younger individuals are regarded as tech-savvy and capable of protecting themselves. However, the reality is far more complex—and increasingly disturbing.

As 2026 approaches, the speed and sophistication of financial crimes are continually advancing. Young adults, particularly those in their early twenties, are being targeted at an alarming rate, often losing small sums due to repeated victimisation over time. Meanwhile, seniors are generally targeted less often; when they are, the consequences can be devastating, sometimes wiping out decades of savings in a single attack.

Gen Z: Frequent Victims of Low-Value, High-Volume Attacks

Young adults today are hyper-connected. They conduct transactions via digital wallets like Venmo, online stores, and apps such as Cash App or banking platforms. Because of the wealth of data they share online, they are attractive targets for cybercriminals.

This has led to an increase in small-scale, high-frequency attacks, including phishing emails, fake app notifications, and AI-enhanced social engineering schemes. While each of these scams usually results in only modest financial loss, their sheer frequency makes Gen Z a testing ground for larger, more sophisticated crimes. Criminals often use these small attacks to refine their methods and identify vulnerabilities in digital security.

Seniors: Rarely Targeted, But with Devastating Consequences

Older consumers tend to behave differently online. They are generally less inclined to experiment with new apps or make impulsive purchases, which makes them less attractive targets for scammers. However, when fraudsters do target seniors, they tend to employ highly strategic and personalised schemes—such as romance scams, investment frauds, or AI-powered impersonation. These scams exploit trust, patience, and sometimes loneliness, making the victims especially vulnerable.

The fallout from these scams can be catastrophic. A single successful scheme might drain thousands or even millions of dollars over time, causing not just financial ruin but also emotional trauma. The emotional and psychological toll can be profound, often leaving victims feeling betrayed and isolated.

AI and Hyper-Targeted Fraud: A New Era

The landscape of fraud has become fully digitised and increasingly sophisticated, largely due to artificial intelligence. Deepfake videos and images that appear startlingly real, automated phishing campaigns, and synthetic identities created by generative AI are now commonplace. These advances allow scammers to bypass traditional security measures with ease. They can learn about their targets, predict their behaviour, and emotionally manipulate them.

Social engineering has shifted from mass emails to highly customised, emotionally resonant schemes. Criminals now operate as highly efficient predators, leveraging technology to target individuals with precision. Such methods enable fraudsters to exploit vulnerabilities at a level that was previously unimaginable.

The 2026 financial fraud landscape is characterised by both frequency and severity. While Gen Z may be the most frequently victimised, losing small sums on numerous occasions, seniors are often targeted less frequently but face the risk of catastrophic financial losses. Fraud is becoming smarter, faster, and increasingly driven by AI. Success in this environment depends on proactive defence, technological awareness, and continuous vigilance. In this battle, knowledge is not just power—it is survival.