Gen Z and Millennials are entering the investment world at unprecedented rates. Around 30% of Gen Z began investing in university or early adulthood—more than three times the rate of Gen X (9%) and five times that of Baby Boomers (6%), according to a new report.
However, this growing interest comes with increasing risks. Reports estimate that upwards of $1 trillion was stolen by international fraudsters through scams.
In 2024 alone, nearly 13,000 fake investment platform domains were detected and blocked across more than 7,000 IP addresses—a 25% increase from the previous year.
As part of their fraud-fighting initiatives, the forex broker experts at BrokerChooser surveyed a representative panel of 2,000 adults and asked how they would respond in 4 different scam scenarios. Alarmingly, 9 in 10 people (91%) said they would act in a way that could expose them to fraud.
Key findings:
- Nearly one in three (95%)respondents lack confidence in spotting investment scams, with 45 to 54-year-olds (38.8%) being the least confident age group
- Young adults (25-34) are most likely to overestimate their confidence in spotting an investment scam, with many still willing to engage with suspicious platforms
- Millennials (53%) and Gen Zs(20.21%)are over six times more likely than Boomers (3%) to say they’d test a suspicious trading platform with a small amount
- One in six Gen Zs (03%)would invest in a suspicious forex opportunity based on celebrity or influencer endorsements, while almost one in five(19.95%) say screenshots of profitable trades would persuade them
Almost two in five 45-54-year-olds lack confidence in their ability to identify an investment scam
New insights from the forex broker experts at BrokerChooser found that one in three (30.95%) people lack confidence in their ability to spot an investment scam.
Those aged 45 to 54 (38.8%) report the highest uncertainty, making them the demographic most vulnerable to investment fraud.
On the other hand, three in five people feel confident overall in their ability to identify an investment scam (60.20%), yet only 16.8% consider themselves ‘very confident’. This figure plummets to just 8.67% among over-55s, highlighting their risk.
More than three-quarters of young adults feel confident that they could spot an investment scam, but is this ability overestimated?
Meanwhile, young adults aged 25 to 34 appear to be the most self-assured, with over three-quarters (76.22%) feeling confident, and one in three (32.62%) rating themselves as ‘very confident’. But crucially, are people overestimating their ability to spot investment scams—and leaving themselves more vulnerable as a result?
Q2. You’re contacted by a new forex investment platform offering returns of 15–20% per month. They mention they are ‘pending regulation’ and already have 2,000 investors. What would you do?
Despite being the most confident in their scam-spotting abilities, those aged 25 to 34 were the most likely to turn to friends or family to check if they’ve heard of the platform or knew anyone who had invested (35.67%).
This is a form of social proof that scammers often exploit, as friends and family can be just as misled, especially when early returns appear convincing.
Besides, Millennials (26.53%) and Gen Zs (20.21%) are the most likely to say they’d test the platform with a small amount, unknowingly exposing themselves to greater risk—compared to just 3% of Boomers. A classic scam tactic, scammers often fabricate early successes to lure people into making bigger investments later.
Interestingly, the survey from the forex broker experts at BrokerChooser found that women are more risk-aware than men when it comes to forex opportunities, with just 10% saying they’d test a small deposit in a forex opportunity, compared to 17% of men.
Q3. What would convince you to make an initial small deposit into a new forex trading platform?
Almost one in five (19.96%) Gen Z respondents say they’d be convinced to invest in a new forex platform based on screenshots of profitable trades. 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. This tactic continues to sway younger, visually-oriented investors.
Even more concerning, over a third of 25 to 34-year-olds (35.37%)—and nearly a quarter of 35 to 44-year-olds (23.68%)—say they’d trust testimonials from “other successful traders”.
This is a fraudulent tactic commonly used in scams through fake or paid endorsements to create a false sense of credibility.
In contrast, baby boomers appear more cautious, with just 6.55% trusting such testimonials, and only 12.66% saying a money-back guarantee would persuade them to invest. While that may sound reassuring, such promises only carry weight if backed by regulation and legal accountability.
Krisztián Gátonyi, from BrokerChooser, commented on the rise of investment scams:
“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 deep fake videos of celebrities endorsing bogus schemes. It’s becoming harder for even seasoned investors to separate genuine opportunities from high-tech fraud. A concerning new study reveals that participants were 22% more likely to invest in AI-enhanced scams than in traditional ones.
While younger adults tend to feel more sure of themselves, some are still falling for red flags like promises of unrealistic returns, unregulated platforms claiming to be ‘pending approval’, or pressure to act fast. It’s critical that people learn to pause and verify – checking for official registration with financial regulators and scrutinising contact information. AI may be empowering scammers, but regulation and public education to be vigilant are still our best defence.”
