Targeted Strategies for Each Generation Against Impostor Scams and Fraud

Targeted Strategies for Each Generation Against Impostor Scams and Fraud

Impostor scams and fraud exploiting consumers’ trust in brands are increasingly prevalent, according to a Risk Management Magazine article by Bruno Farinelli, senior director of operations and analytics at ClearSale.The FTC says US consumers lost $752 million to business impostors in 2023.

These scams vary in tactics across age groups, and Farinelli emphasizes the need for brands to understand and protect different customer segments.

Baby Boomers (55+) are at higher risk of phone scams, as they are more likely to use customer support hotlines. Impostors capitalize on this, with many victims losing an average of $1,480. To protect this demographic, brands should use AI tools to identify fake contact numbers and enhance the visibility of their legitimate support numbers. Additionally, clear messaging about fraud prevention can help reinforce consumer trust.

Gen X and Millennials (born 1965–1996) experience high rates of social media fraud, with 49% shopping on these platforms and 13% encountering scams. They tend to favor digital wallets and security certifications on e-commerce sites. Brands targeting this demographic should proactively monitor social media for impostor accounts, educate consumers on secure purchasing channels, and offer secure payment alternatives to foster trust.

Gen Z (born 1997–2012), with their high social media engagement, is particularly susceptible to scams on these platforms and often loses money through payment apps. Their interest in luxury “dupes” also exposes them to counterfeit products, impacting brand reputation. To mitigate this, brands should display security certifications, actively monitor for counterfeit goods, and inform Gen Z shoppers about safe channels and the social implications of counterfeit products.

For all demographics, Farinelli encourages vigilance in monitoring and reporting brand impersonators and fraud, coupled with targeted consumer education, is essential. By aligning fraud prevention strategies with consumer preferences, brands can reinforce trust and protect their reputations across generations against impostor scams and fraud.