Digital Theft on the Rise: How Wealthy Gen Z and Millennials Are Gaming Online Retail
2 min read
After receiving the purchased products, consumers ask for a refund as if the orders had not reached them Photo: Adobe Stock
The Growing Trend of Digital Shopping Fraud
Online shopping has become a battleground where consumers are increasingly finding ways to exploit retail systems. A recent study by Socure reveals a startling trend: approximately half of wealthy Gen Z and Millennial consumers are engaging in what experts call “digital theft” – a practice that’s reshaping the e-commerce landscape.
What Exactly is Digital Theft?
Digital theft involves manipulating online purchasing systems to receive refunds for products actually purchased and received. This can include:
- Claiming packages were never delivered
- Falsely reporting unauthorized purchases
- Initiating unwarranted chargebacks
The Shocking Statistics
In a comprehensive survey conducted in December 2024, Socure interviewed 2,000 Americans and uncovered some eye-opening insights:
- 50% of high-income Gen Z and Millennials (earning over $100,000 annually) admitted to digital theft
- Multiple generations are participating in this practice
- Social media is playing a significant role in spreading these tactics
Why Are Consumers Doing This?
Several factors contribute to this disturbing trend:
- Financial Pressure: Inflation is pushing consumers to find creative ways to reduce expenses
- Social Media Influence: TikTok and other platforms feature tutorials on obtaining refunds
- Perceived Low Risk: Many believe there are minimal consequences for such actions
A Viral Example
One TikTok influencer with nearly 3 million followers demonstrated how to obtain Amazon Prime refunds by claiming delayed deliveries. The video explicitly highlighted customer service’s leniency, showing how easily these systems can be manipulated.
The Real Cost to Businesses
The financial impact is significant:
- Retailers lose approximately 3.75 times the transaction value per chargeback
- Includes direct product loss, chargeback fees, and damaged payment network relationships
- Small businesses are particularly vulnerable to these practices
Expert Insights
Ori Snir, Socure’s head of fraud and identity product management, suggests an intriguing connection: “There might be a link between those who understand banking and commercial obligations and those exploiting them.”
Potential Consequences for Consumers
While many see digital theft as a low-risk activity, potential repercussions include:
- Account blocking with specific retailers
- Potential legal complications
- Damage to personal credit reputation
Recommendations for Retailers
Experts like Snir recommend:
- Enhanced transaction verification
- More comprehensive customer information collection
- Robust evidence gathering to dispute fraudulent claims
The Ethical Dilemma
This trend raises critical questions about consumer ethics in the digital age. Is this a form of economic survival or simply opportunistic behavior?
What Consumers Should Know
While the temptation might seem low-risk, digital theft can have long-term consequences:
- Potential legal actions
- Reputation damage
- Increased prices for all consumers
Conclusion
The rise of digital theft represents a complex intersection of financial pressure, technological accessibility, and evolving consumer behaviors. As online shopping continues to grow, both businesses and consumers must adapt to maintain a fair and sustainable marketplace.
Want to protect your business from digital fraud? Check out our comprehensive guide on e-commerce security strategies!
