Younger, wealthier consumers more likely to be cybercrooks than poorer ones
Younger Americans earning more than $100,000 a year have stickyfingers and have no problem finding reasons to cheat a little every now and then, a recent survey reveals.
After all, they're more likely to have several credit cards and are adept at manipulating the cyberworld, so it's easy to claim a package never showed up. Perhaps more significantly, Gen Z and Millennials are inclined to justify their larcenies as some sort of public service.
Many say they feel no regret, and 46% of them say they see their illegal actions as consumer advocacy, thesurvey by digital fraud prevention company Socure found.
This kind of theft is known as "first-party fraud" or "friendly fraud" and many younger, more affluent consumers not only admit to it but use social media to brag about their exploits and pass on tips to friends. Socure's findings indicate that this type of fraud costs U.S. financial institutions and merchants over $100 billion annually.
Some of the most common examples:
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"Friendly Fraud" or "Chargeback Fraud": This is when a customer makes a legitimate purchase online but later disputes the charge with their bank or credit card provider, falsely claiming the transaction was unauthorized. This tactic can be seen more often with wealthier individuals who may be less concerned about the financial consequences and may use the chargeback system to get products for free.
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Digital Piracy and Subscriptions: Wealthier, younger consumers are also more likely to engage in piracy or "streaming theft," where they may access subscription-based services like music, video streaming platforms, or even software without paying. This can involve bypassing paywalls, using cracked or illegal software, or taking advantage of free trial loopholes.
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Use of Stolen Payment Information: Younger, tech-savvy consumers may also use stolen payment information, such as credit card details, to make fraudulent online purchases. This is more common with individuals who understand how to evade detection through VPNs or by using disposable or stolen payment methods.
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Online Reselling: Some wealthy young people may buy luxury items through legal means and then resell them at a profit. While this isn't necessarily illegal, it can blur the lines with practices like "scalping" or reselling items at much higher prices than their original value. The rise of "resale" culture online, especially in markets like sneaker reselling, is an example of this.
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Social Media and Peer Influence: Wealthy younger consumers may be influenced by social media and peer groups that glamorize expensive purchases. This can sometimes lead to dishonest behavior, including theft, to "keep up" with online trends or display their social status.
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Anonymity and Lack of Consequences: Younger consumers, especially those who are highly connected online, may take advantage of anonymity or the lack of immediate consequences that can come with digital theft. This might include engaging in cyberbullying, hacking, or making unauthorized purchases with stolen credentials because they perceive online theft to have fewer risks than traditional crimes.
Not much risk
The kind of fraud is basically the flip side of retail theft from brick-and-mortar stores, which gets a lot more attention from the press and from law enforcement.
Poorer young consumers can wind up in jail if they get caught heisting a pair of sneakers but a college grad armed witih a Visa card might, at most, wind up admitting they really did get those sneakersthey claimed went astray and have the charge put back on their card.
No one really worries much about it, except the online merchants and credit card companies and they're not exactly seen as sympathetic figures.
Critics point out that it's not a giant step from feeling that it's OK to rip off Amazon or American Express, to thinking it's OK to shoot an insurance executive in the back, as occurred recently. You might get by with it but, as the saying has it, it's not your father's consumer advocacy.
Photo Credit: Consumer Affairs News Department Images
Posted: 2025-01-27 20:25:40
