Gen Z and Millennials are confident in spotting scams, yet are the first to jump into new investments
A recent survey by forex broker experts at BrokerChooser found that 76.22% of 25- to 34-year-olds are 'confident' they can spot investment scams, and 32.62% even said they are 'very confident.'
Across all age groups, 60.20% of respondents felt confident spotting scams—but only 16.8% were 'very confident,' with that number dropping to just 8.67% among those over 55. At the same time, a striking 91% admitted they would act in ways that could expose them to fraud.
When asked what they'd do when presented with a new forex investment platform 'pending regulation,' claiming to have 2,000 investors and offering returns of 15% to 20% per month, 35.67% of respondents aged 25 to 34 said they'd ask friends or family if they'd heard of it.
According to the report, this is a form of social proof that scammers often exploit.
Millennials (26.53%) and Gen Z (20.21%) said they would 'test' the platform by investing a small amount, compared to just 3% of Boomers, unknowingly exposing themselves to greater risk.
This comes as investment scams surge worldwide. In 2024 alone, Infosecurity Magazine reported that fake investment domains jumped 25% compared to the previous year, with nearly 13,000 fake investment domains detected across more than 7,000 IP addresses.
Globally, it is estimated that over US$1 trillion was stolen through scams, according to the Global Anti-Scam Alliance.
Despite these, interest in investing among younger adults continues to rise. About 30% of Gen Z started investing while still in university or early adulthood—over three times more than Gen X (9%) and five times more than Boomers (6%).
BrokerChooser also found that younger investors are more likely to be swayed by common scam tactics.
Almost one in five Gen Zs (19.96%) said screenshots of profitable trades would convince them to invest, while 15.03% would trust celebrity or influencer endorsements. See also Is Cash Out Refinancing a Smart Financial Move?
'This is concerning given that two out of three forex customers typically lose money and the fact that 50% of fraud now involves the use of AI, which can be used to fake images,' it noted.
Notably, OSC research found that people were 22% more likely to invest in AI-enhanced scams than in traditional ones.
Meanwhile, 35.37% of Millennials said they would trust testimonials from so-called 'successful traders,' even though these could be easily faked or paid endorsements to create a false sense of credibility.
One of the most common red flags, unregulated platforms claiming to be 'pending approval,' still manages to hook people. When asked how they would verify the legitimacy of a forex trading platform, 23.15% of respondents said they would ask the broker directly for copies of their licences and certificates. However, this can be risky, as it relies entirely on trusting the broker's word, who may provide forged or misleading documentation. See also Best fixed deposit rates in Singapore for Jan 2024
Krisztián Gátonyi, from BrokerChooser, said, 'It's critical that people learn to pause and verify, checking for official registration with financial regulators and scrutinising contact information.'
He noted, 'A quarter of young investors admit to making impulsive decisions in order to keep up with current investment trends, often leaving little time to properly evaluate the risks. Amid a sharp rise in investment scams, this behaviour is particularly dangerous, especially as fraudsters grow increasingly sophisticated in how they present themselves.'
'With the rise of AI, we're now seeing realistic fake websites, chatbot 'advisors', and even deepfake videos of celebrities endorsing bogus schemes. It's becoming harder for even seasoned investors to separate genuine opportunities from high-tech fraud,' he added. /TISG
Read also: Fraud and scams driven by generative AI are now among the biggest cyber threats in the financial sector
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNA
3 hours ago
- CNA
HGC Appoints Argon Ho as Chief Commercial Officer of Group ICT Business
HONG KONG SAR - Media OutReach Newswire - 20 August 2025 - HGC Global Communications ("HGC" or the "Group"), a fully-fledged ICT service provider and network operator with extensive global coverage, today announced the appointment of Argon Ho as Chief Commercial Officer – Group ICT Business, with immediate effect. In this role, Argon will oversee the Group's ICT organisation and enhance ICT spread out — driving the Group horizontal growth across cybersecurity, digital solutions and cloud through AI, while pursuing project-based vertical penetration within existing accounts and into new markets, and concurrently expanding HGC's international footprint. With over 30 years in ICT, Argon is a widely recognised leader in Greater China's technology market, especially in enterprise software and applications. His extensive expertise spans strategic planning, cyber security, and data governance. Prior to joining HGC, he honed through tenures as Managing Director of Check Point Software Technologies for the Greater China Region and General Manager at Cisco Hong Kong and Macau. Beyond his corporate achievements, Argon actively contributes to the community through advisory and directorial roles in organizations such as the Institute of Big Data Governance, the eHealth Consortium, and the Senior Citizen Home Safety Association, among others. In his new role, Argon will champion the growth of ICT business by accelerating the adoption of cutting-edge technologies, simplifying digital transformation for clients, and delivering AI empowered ICT solutions and platform that meet the evolving needs of mass market, corporate and SME customers. Argon will also support corporate customers in expanding their business overseas seamlessly by leveraging the Group's regional strengths. Additionally, he will drive the Group regional expansion by strengthening system integration and enhancing ICT and digital solutions locally and internationally. Andrew Kwok, Chief Executive Officer of HGC, said, "We are delighted to welcome Argon to HGC. His expertise and leadership will help advance our ICT strategies and support the Group's continuous growth in the region. Argon's appointment reinforces our focus on expanding our ICT business and achieving our goal of advancing global connectivity and innovation. We are confident that, under Argon's leadership, our ICT business will reach new heights, unlock future growth opportunities and further enhance our competitiveness in dynamic markets." Argon Ho, Chief Commercial Officer – Group ICT Business at HGC, said, "I am honored to join HGC and its dynamic and innovative team. Leveraging the Group's robust regional infrastructure, strong ecosystem partnerships, and pool of top talent, we are well-positioned to harness emerging technologies like AI to deliver customized ICT solutions that empower clients at every level on their digital transformation journey. Moving forwards, we will focus on AI integration, cybersecurity, and regional expansion, to drive the continued growth of our ICT business and reinforce HGC's reputation as a leading provider of innovative ICT solutions." The issuer is solely responsible for the content of this announcement. About HGC Global Communications Limited HGC Global Communications Limited (HGC) is a leading Hong Kong and international telecom operator and ICT solution provider. The company owns an extensive network and infrastructure in Hong Kong and overseas and provides various kinds of services. HGC has 20 global offices and staff presence in 33 cities worldwide. It provides telecom infrastructure service to other operators and serves as a service provider to corporate and households. The company provides full-fledged telecom, data centre services, ICT solutions and broadband services for local, overseas, corporate, SME and mass markets. HGC owns and operates an extensive fibre-optic network, five cross-border telecom routes integrated into tier-one telecom operators in mainland China and connects with hundreds of world-class international telecom operators. The company is committed to further investing and enriching its current infrastructure and, in parallel, adding on top the latest technologies and developing its infrastructure services and solutions. In 2019, HGC Group completed the acquisition of Macroview Telecom Limited (Macroview), a leading digital technology solution and managed services provider. The addition of Macroview further accelerates HGC Group's digital transformation path and positioning as a pioneering ICT and digital services leader. HGC is a portfolio company of I Squared Capital, an independent global infrastructure investment manager focusing on energy, utilities, transport, social infrastructure, digital infrastructure, and environmental infrastructure in North America, Europe, Latin America and Asia.
CNA
12 hours ago
- CNA
CNA938 Rewind - Stock take today: Intel's twin lifeline, the bubble risk in tech
On the daily markets analysis on Open For Business, Andrea Heng and Hairianto Diman speak with Damian McIntyre, Head of Multi-Asset Solutions, Federated Hermes.
CNA
15 hours ago
- CNA
Commentary: You should ask your teens for shopping and investing tips
HONG KONG: Next time your teenagers have a craving for the ultra-spicy Buldak ramen or the fierce-looking Labubu toy, don't scratch your head and question their taste. Rather, consider yourself lucky, because they are helping you spot the next billion-dollar brand before it gets on global investors' radar. With birth rates falling around the world, Generation Alpha, roughly born between 2010 and 2024, will have the largest economic footprint in our lifetime. An estimated US$5.3 trillion has already been spent on them, and by 2030, some will be joining the labour force and earning. What's different with this cohort – as opposed to Gen Z, which is into self-care and 'little treats' – is that they have their parents' ear. Over 90 per cent of mums and dads surveyed say their children are great at finding new products, according to public relations firm DKC. In addition, participants say 42 per cent of all household spending is impacted by their children's options. GOING MAINSTREAM WITH MILLENNIAL PARENTS These parents, often millennials, have seen some tough times. In the United States, the American dream is once again elusive: Soaring home prices are deterring first-time buyers and a cost-of-living crisis is weighing on household budgets. In China, where ageism is a huge issue, the outlook is even worse. As tech companies downsize, mid-career professionals, particularly those over 35, are hit the hardest. It's thus no surprise that millennials are happy to get inputs from their technology and social media-savvy children. This dynamic puts influencer-promoted brands into play. For instance, even though Labubu's Google search and social media trends seem to have peaked in July, its manufacturer Pop Mart's shares continue to test record highs. This is because its clientele has shifted from young adults to well-to-do working mums who like to dangle Labubu keychains on their oversized 'Big Ass Bag,' a trendy look this year. Once this toy goes mainstream, investors can get more imaginative with profit growth. Trading at a whopping 40 times 2025 estimated earnings, Pop Mart boasts a higher market cap than Sanrio and Mattel, the owners of Hello Kitty and Barbie, combined. Once Gen Alpha gets involved, monetisation speeds up. Samyang Foods, whose ridiculously spicy instant noodles have captivated young Americans with 'Buldak Challenge' videos, had a 34 per cent jump in first-half net profit on strong overseas sales. Its shares have risen 82 per cent this year, with investors betting on the company's resilience to President Donald Trump's tariffs. FINANCIALLY LITERATE GEN ALPHA CHILDREN It's not all good news that this generation has sway over their parents' wallets, however. They are picky shoppers who multinationals will have to try extra hard to convince. According to the same DKC survey, almost all participants – largely financially insecure millennials – are teaching or planning to teach their children how to budget. China's teenagers are even harder to please. Thanks to myriad innovative businesses that have sprung up in recent years, they've tried all sorts of global products. Take the beauty category, for instance. Local retailers like Harmay sell affordable cosmetic samples such as body lotions from Le Labo Fragrances and face serums by La Prairie. Young fashionistas there can tell you in a heartbeat what's good value for money. This is perhaps why multinationals are paying so much for celebrity-founded companies. In May, Elf Beauty acquired Rhode, the upstart brand founded by Hailey Bieber, who has 55 million followers on Instagram, for US$1 billion. If big corporations can't generate the necessary buzz, they will need to rely on influencers to tell their stories. Last year, private equity accounted for nearly 40 per cent of deals in the beauty sector, in the hope that their portfolio companies can one day be resold to deep-pocketed strategic buyers. From second-hand shopping to going sober and meat-free, young people are redefining consumption in so many ways. It's time to listen – and get some investing tips from them.
