MSU Extension 4-H Youth Money Management

According to the Consumer Sentinel Network 2023 report from the Federal Trade Commission, the Gen Z generation (young people aged approximately 20-29 years old) reported losing money to fraud more often than older people. However, when people aged 70+ lost money, the median amount of their loss was much higher ($803 compared to $480). Both statistics show how important it is for all generations to know the red flags of potential scams and frauds.

Want to help protect your money? Common signs of a fraud or scam include:

• A sense of urgency. Scammers thrive on you responding from a place of panic. The goal is for you not to take the time to do any research, look into the information or ask questions. Pause when you are feeling pressured and rushed. Rarely is anything that time-sensitive that you can’t find out more.
• Messages look real but are not real. There are many methods that scammers use to “spoof” communication so it appears similar to other communication methods from the original source. Check for spelling and grammar errors which can often be a sign of a scam. Email and website addresses may look like what you expect but have small differences, such as the types of letters in the address. The style of text may be different or the overall tone. If you are not sure, contact the individual or organization directly from independently-sourced contact details to find out if the communication is legitimate.
• Requests are made to use non-secure payment methods. The scammer’s goal is to get funds in a method that is both difficult to track and harder to recover. Consider how you are being asked to pay. Wire, bank or international fund transfers, money orders, pre-loaded gift cards and cryptocurrency are non-secure methods. Look for or request more secure forms of payment.
• No proof you will get the end product. Photos of products can be stolen and used to scam others of their money. Never trust a photo alone. Ask for details, additional photos or videos, and do research to determine the legitimacy of a local pick-up. Confirm that the person you are contacting is legitimate through your own research.
• The deal feels too good to be true. Enticing deals are how you are lured. If it seems too good to be true, it could be a sign that it is a scam.
• There are suspicious links or unsecure websites. A good start is to check that the website is an https (not http) website and the padlock icon is in the address bar. This helps to ensure you have a secure connection between yourself and the website. While it is not a sure thing (scammers find ways to scam https as well), it is an important first step to check. Be careful with attachments and links that are provided in communications, as well. It is safer to go directly to a service provider’s website by typing in their direct website address than using a link that could be connected to a phishing website.

Michigan State University Extension provides an online course and other learning opportunities that can help teens and young adults avoid falling victim to scams. Knowing the attributes of common scams can help prevent you from being a victim of one.

MSU Extension and Michigan 4-H Youth Development help to prepare young people for successful futures. As a result of career exploration and workforce preparation activities, thousands of Michigan youth are better equipped to make important decisions about their professional future, ready to contribute to the workforce and able to take fiscal responsibility in their personal lives. For more information or resources on career exploration, workforce preparation, financial education or entrepreneurship, contact 4-HCareerPrep@msu.edu.