TransUnion (NYSE: TRU) pointed out that in today’s gig economy, where side hustles like ride-sharing, food delivery, freelance tasks, and caregiving provide essential income streams, a concerning trend is emerging among younger participants. A recent study reveals that almost one-third of Millennials and Generation Z individuals involved in these platforms are lending out their accounts to people they haven’t personally vetted.
This practice, driven by economic pressures, highlights vulnerabilities in digital work environments that could endanger everyone involved.
The findings come from a comprehensive report on gig economy trends, which surveyed workers across various age groups.
Overall, about a quarter of all gig participants admit to renting their accounts, while one in five have sold them outright.
However, the behavior is notably more prevalent among the youth: both Gen Z and Millennials report a 31% rate of account renting, compared to just 20% for Gen X and a mere 7% for Baby Boomers.
Selling follows a similar pattern, with Millennials at 27% and Gen Z at 22%, dropping sharply for older cohorts.
This generational divide suggests that financial strains in an uneven economic recovery—often described as K-shaped, where some thrive while others struggle—are pushing younger workers to take risks for extra cash.
Beyond the numbers, the report uncovers deeper issues with platform security.
Fewer than half (45%) of gig workers feel that identity verification processes on these apps are highly effective, leaving room for exploitation.
Additionally, over a third (34%) have experienced fraud directly from customers during jobs, amplifying calls for stronger safeguards.
Renting or selling accounts to unverified users isn’t just a shortcut for income—it’s a gateway to serious hazards.
Consumers might unknowingly interact with imposters, facing potential scams or even physical threats during services like home deliveries or rides.
Meanwhile, the original account holders and the platforms themselves could bear legal responsibility for any mishaps, from accidents to outright crimes.
Colleen Thiry, who leads the gig economy division at a major financial services firm, warns of the broad implications:
“Allowing unvetted individuals to use these accounts endangers customers with fraud and safety risks, while exposing workers and companies to significant liabilities if something goes wrong.”
Her perspective underscores how lax oversight can erode trust in an industry already grappling with fraud spikes.
To combat this, experts recommend bolstering defenses through advanced tools like real-time identity checks and device monitoring.
These technologies can spot unusual patterns, such as logins from unfamiliar devices or locations, helping platforms flag and prevent unauthorized access early.
Workers themselves are demanding more: many want biometric verifications, address confirmations, and dual-sided checks for both providers and clients during sign-ups.
Such measures could foster safer experiences, reducing fraud while keeping the gig economy accessible and efficient.
This trend arrives amid broader economic challenges, where inflation and job instability force creative income strategies.
Yet, as the gig sector grows—encompassing everything from app-based driving to online freelancing—prioritizing security is crucial.
Platforms that invest in verification not only protect users but also sustain long-term growth. For young workers, the allure of quick money through account sharing must be weighed against the potential fallout.
As the report suggests, innovation in fraud prevention could be the key to a more secure future for all in this dynamic workforce.