Barclays Report: 35% of Gen Z Unintentionally Become Money Mules
- Gen Z is becoming recognized as a prime fraud target
- A quarter of Gen Z fraud victims do not report incidents
- Financial institutions have stepped up educating their customers
WebWire's report on the latest Barclays Scams Bulletin has revealed a worrisome trend among Gen Z: A striking 35% of young adults would be willing to move money for a stranger in exchange for a fee, while a staggering 71% remain unaware that participating as a money mule could lead to a criminal record.
This revelation comes as Barclays reports a 63% surge in SMS scam cases targeting Gen Z since 2023, with fraudsters increasingly leveraging direct contact and messaging apps to appear more credible. The risks are especially acute as the new university term gets underway and students face mounting financial pressures.
Barclays’ research as cited by WebWire shows that almost half (48%) of Gen Z adults have either been targeted by a job scam or know someone who has, tying job scams with identity impersonation as the most cited hazards for this age group. These scams often lure victims with promises of high pay for minimal effort, only to solicit upfront payments for training or equipment, collect sensitive personal details, or ensnare victims in laundering money without their knowledge.
Unwitting Money Mules?
The issue of “money mule” recruitment is intertwined with job scams: scammers may disguise offers for easy money as legitimate employment, asking individuals to “process payments” or “transfer funds” through their bank account. Barclays found that 14% of Gen Z respondents would be “very likely” to agree to such requests, often underestimating the criminal and financial consequences.
Of those at risk, 25% would not tell anyone due to embarrassment—a stigma that perpetuates the cycle of under-reporting and victimization.
Kirsty Adams, Fraud & Scams Expert at Barclays, says: “Students are facing real financial pressure, and criminals exploit that anxiety with offers that look professional and promise quick cash. If you’re asked to pay upfront, share personal details, or the job sounds too good to be true, there’s a good chance it’s a scam. Always take time to check before you respond.”
Additional findings from Barclays:
- Three out of every five young people reported being contacted by job scammers via text or messaging apps
- SMS-driven scams account for a growing share—15%—of overall scam claims this year.
- With Gen Z’s increased screen time, social media remains the top source of scams at 59%.
- Of those personally affected by job scams, 63% say they have become more cautious about job hunting, and about half have been dissuaded from applying for remote work or responding to otherwise legitimate opportunities.
- Despite these risks, very few speak up; only 31% report the incidents to their bank and just 23% to a family member.
Paper Checks and Job Scams
Often, employment scams include paper checks -- a payment least utilized by Gen Z. Typically, this is how to scam is performed:
- Individual accepts job and receives a paper check in the mail
- Individual is instructed to deposit the paper check into their bank account and purchase the equipment needed for their role
- Individual is instructed to send the amount difference back to company, typically in electronic form
Unfortunately, by the time the financial institution validates the paper check as a fake check, the victim is out hundreds -- if not thousands -- of dollars.
Financial institutions have been aggressive in educating their customer base to watch out for these scams. They can further protect their customers by deploying AI technologies for paper check deposit fraud. This technology analyzes the deposited check, employing a sophisticated combination of seven (7) fraud detection layers of technology. This enables banks to flag the fraudulent check and inform their customers before any funds are transferred to the fraudster.
Gen Z might be most technologically savvy, but they may also be the most financially naive. Financial institutions need to ensure that they have the right technology in place to protect the most vulnerable customer groups.