It’s not just the elderly being drawn into fraud. Young people are also increasingly prey for financial crime, according to a Federal Reserve report.

Scams, which are frauds that use false pretenses to dupe consumers into transferring money to a criminal, have become a billion-dollar problem in the U.S. While the elderly are often victims, sometimes because they are less digitally savvy, young people may be vulnerable partly because they’re overconfident in their digital environments, the Fed report said.

The Fed cited another organization’s survey that showed Gen Z consumers – those born between 1997 and 2012 – believe they can recognize a scam, but then demonstrated poor skills in verifying whether an online request for information was legitimate.

Young people are exposed to threats as they navigate new experiences, such as opening a financial account, finding a new job or renting their first apartment.

“With limited financial experience, they may not yet know what legitimate financial or business interactions typically look like,” the report from the central bank said. “This can make it harder to spot red flags commonly present in scams.”

Some typical scams directed at youth include “exclusive online deals like flash sales or limited-edition drops;” job offers with “high pay, minimal qualifications and immediate hiring” that require upfront payments or the purchase of materials; and convenient and timely apartment rentals online that require “quick payment of fees or deposits,” according to the Fed report.

Some red flags that may elude young people include being pressured to act immediately, asked to share personal information, and lured into using an untraceable payment method, like a gift card.

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