Gen Z Consumers Face The Highest Online Fraud Risks – How Are They Staying Protected?

A massive rise in fraud and scams in the UK has made mainly younger generations at risk. In fact, Svetilo Todorov, Managing Director at emerchantpay says their research found that an entire 57% of consumers aged 18 to 29 have noticed an increase in financial scam attempts this year alone.

This rise has AI to thank, because Cifas reports that a lot of the fraud cases in the UK are related to the rise in AI scams.

Todorov says “Attacks are being scaled at speed and with a level of sophistication not yet seen before, with a rise in new tools being used to automate phishing messages, build fake websites, and, recently, even mimic human voices over the phone.”

Why And How Are Gen Z Consumers Facing The Highest Risk?

Interestingly, Gen Z seems to be falling for the tricks more, even though they’d be considered the most digitally savvy and aware. But it seems like that is the very generation that takes the least precaution when it comes to shopping online.

61% of 18 to 29 year olds report that they do not make purchases through random links they do not trust online. Boomers are actually the most cautious, with 86% of them reporting the same.

Todorov adds, “Compounding the problem is a greater sense of stigma around fraud for younger shoppers. More than half (54%) of Gen Z consumers worry they will be judged if they fall victim to a scam, compared with only a quarter of those aged between 62 and 80.

“This concern may also explain why younger cohorts are more hesitant to report fraud losses of £100 or less.

“Meanwhile, the environments in which younger consumers shop have become a key target for criminals. Citizens Advice has identified online shopping as the “top trap” for scammers, with more than a quarter (26%) of those deceived by fraudsters in the past 12 months being targeted while shopping online.

“As the most active participants in digital commerce, younger consumers increasingly depend on merchants to provide payment experiences that are highly secure, while not compromising on the speed and convenience upon which they have also come to rely.”

Gen Z being raised in a time where AI moves into every life brings new risks that feel less obvious than the older threats.

NatWest Thrive says people should only ship on trusted websites and double check web addresses for spelling errors. A fake site can look legit at first, but that’s exactly what makes it so easy to fall for. But being aware of these small details can be one of the easiest ways to avoid the scams.

It’s also helpful to check reviews. NatWest Thrive explains that ratings and customer feedback gives you a quick sense of whether a site or product can be trusted. The more unknown sites are likely the riskier option, especially when prices look unbelievably low.

Banking apps can act as an early warning system and NatWest Thrive advises setting up spending alerts so any unusual transaction appears straight away. Quick action gives a better chance of stopping fraud before more money is taken.

Unexpected messages are another common route for scams – NatWest Thrive says people should be cautious of random emails, texts or calls from unknown contacts. Sending money or personal details to strangers online can lead to serious loss.

Passwords are still one of the simplest lines of defence right now. NatWest Thrive recommends strong, unique passwords for each account or using a password manager. Reusing the same password across platforms makes it easier for attackers to get into multiple accounts.

Public spaces can also create risk and doing things like entering card details on public WiFi or in busy places makes it easier for others to see private information. NatWest Thrive advises avoiding online shopping in these environments and only using secure pages with “https” and a lock symbol next to the site.

Selling online comes with its own risks too. NatWest Thrive says sellers should use secure payment systems and never send items before full payment arrives. This protects against buyers who disappear after receiving goods.

How Does This Impact UK Businesses?

As Todorov puts it, “For businesses on the frontline of digital commerce that are serving consumers every day, payment security is a constant concern. They are under relentless pressure to ensure their cyber defences are robust enough to match the rising, fast-moving fraud threat.

“Recent breaches, such as the cyberattack that disrupted Marks & Spencer’s operations in 2025, show how quickly both operations and customer confidence can be shaken. Failure to prioritise safe payment systems can come with catastrophic consequences – erosion of customer trust, financial losses, and operational downtime to name a few.”

What Should Businesses Do To Keep People Safe?

Businesses cannot afford to treat payment security as a last priority these days. Todorov says, “three quarters (75%) of people cite security is their main priority when spending online.” This data, together with the earlier data referenced by Todorov, comes from research by Opinium, which surveyed 2,000 UK adults in February 2026.

A poor checkout experience can cost more than a single sale. Todorov explains that weak security leads to cart abandonment, low customer retention and loss of trust. Customers expect payments to be quick and safe at the same time, and anything less can push them elsewhere.

Payment service providers are to be the most responsible here. Todorov says working with PSPs helps merchants keep up with fraud trends and meet changing customer expectations across different age groups and markets. These partnerships bring in tools and expertise that many businesses do not have in house.

Tech such as 3D Secure 2 strengthens customer checks during payments. Todorov explains that it supports real time authentication and smoother payment flows, while also shifting liability in cases where fraud slips through after proper checks.

Education is also so important, on both sides. Todorov says, “when consumers are informed, they are better able to make behavioural changes to reduce risk – such as avoiding untrusted links.” This means businesses should not stay silent. Clear guidance during checkout or through emails can help customers make safer choices.

But also, responsibility does not fall on users alone. Todorov makes it clear that fraud protection is the merchants and their payment partners’ responsibility. Strong systems, backed by the right technology, build trust and help businesses grow without putting customers at risk.