Talking to you kids about fraud & scams

Fraud is an ever-growing concern, and young people are frequent targets, as they can be unaware of the risks involved with normal email, text, online shopping and social media use. A survey by Deloitte in December 2024 revealed that Generation Z (born between 1997 and 2012) are more than twice as likely as Baby Boomers to be victims of cyber hacking, identity theft or an online scam. The more you can teach your children about safe online behavior, the better.  

What is fraud?

Fraud happens when criminals trick someone into revealing personal information, sending them money or giving them access to their bank account or other online accounts.

A scammer might connect with someone on social media, get to know them and trick the victim into revealing personal information that the scammer can use. With kids and teenagers, scammers may pretend to be someone close to a child’s age to gain their confidence. 

Fraudsters might ask teenagers for personal details they could use to engage in identity theft or trick them into tapping on a link that installs malware on their phone.

What types of online fraud and scams affect teenagers and young adults? 

Fraud prevention starts with knowing the types of scams out there. These are the most common types of scams targeting young people. 

Online shopping scams – Social media promotions and advertisements try to convince someone to buy something expensive at an unbelievably low price. The victim not only loses the money they send, but scammers can also use the personal data and payment information they receive to take even more money. 

Phony contests – A “contest” to win an expensive item or a free trip that involves paying a fee and sharing personal information. 

Online quizzes and surveys – A quiz or survey might ask someone’s opinion about music and other topics. It might pretend to be from a major retailer offering a gift card or an expensive item for taking a survey. The goal is to trick people into revealing personal data that scammers can use to change someone’s password and hack into an account. 

Talent scouting and employment scams – A scammer might impersonate a celebrity or pretend to be a talent scout claiming to be looking for prospective actors, singers or models. They ask kids to pay a fee to be considered or give them pictures, videos and personal information. A variation on this type of scam involves someone offering an unbelievable job opportunity or a way to make easy money but the victim must reveal private information or pay a fee. 

Scholarship, financial aid and student loan scams – A scammer might offer to sell scholarships and grant information that teenagers and their parents could find on their own for free. Sometimes a scammer will charge a fee for someone to apply for a grant or scholarship that doesn’t exist. For those who already have student loans, scammers might offer phony loan forgiveness plans. The scammer’s goal is to receive a financial payment or personal information they can use for identity theft. 

Phishing texts and emails – Scam texts and emails usually try to create a sense of urgency, such as claiming a phone or tablet is at risk or an account has been compromised. They often claim to be from a legitimate business, such as a software or social media company. They could also claim to be from the government, a school or law enforcement. They might ask the victim to click on a link that compromises their phone or computer or to reveal personal and financial information. 

Pop-up and advertising scams – Scammers post pop-up ads on websites, video games and social media platforms that convince someone to click on a link that installs malware or spyware onto a phone or computer. In many cases, the ad might claim that the user’s phone, tablet or computer is at risk of being compromised. 

Online gaming scams – Because many young people enjoy video games, scammers will try to connect with them. A scammer might offer help with a particular game to befriend someone, which can result in a request for funds or personal information, or the scammer tricks their victim into installing malware or spyware on a device. 

Protecting your kids from fraud

One of the most important messages that parents can teach their kids about online safety is to never share personal information, videos or pictures with anyone they don’t know. It’s also important to and to be wary clicking on unsolicited emails, texts, social media contact or pop-up ads. 

Personal information includes passwords, addresses, financial details, birthdays or even a pet’s name. These details are valuable information to scammers, who could use them to change someone’s passwords. 

Make sure your kids understand that banks and legitimate businesses will never ask for personal information via text or email. Anyone claiming to be from a school, the government or law enforcement should be verified before replying. 

How to keep your kids safe online

Teach your kids to follow these best practices for online safety: 

• Never click or open unsolicited messages 

• Never share any personal information with anyone they don’t know 

• Never share passwords with friends  

• Only shop on websites that are trusted 

• Change passwords often and never use the same password for more than one account.  

• Create usernames for social media instead of using their actual name. 

• Encourage them to talk to you if they think they’ve been scammed. They shouldn’t feel embarrassed or afraid they’ll get into trouble.  

Teach your kids to spot red flags 

There are some telltale signs of scams that everyone should watch out for. These include: 

• A sense of urgency: “You must act now!”
• Offers that are too good to be true: free money or gifts for no reason or someone posing as a celebrity who wants to be their friend or business partner 
• Requests for secrecy: a scammer who tells them not to tell parents or teachers 
• Blackmail: a scammer says they’ll reveal personal or embarrassing information unless the victim sends money 
• Threats: a scammer pretends to be from law enforcement or a collection agency and threatens them with arrest unless they comply 
• Unusual payment demands: Scammers often tell their victims to send money via gift cards or wire transfers from a retail store or check-cashing service rather than using a bank.  

Establish safe financial habits

Teaching your kids about fraud takes time and ongoing reminders of all the tactics and red flags we address. You might quiz them about different scenarios a scammer might use to trick them into revealing personal information or sending money.

How to protect your family from being scammed

Have your entire family install malware and antivirus software on all their devices. Using browser pop-up ad blockers can reduce the chance that one of you will click on a malicious ad. 

You can also use a password manager for your entire family. It can create unique passwords for every account and fill in the information automatically using a web browser extension. This way, you only have to remember one complex password. Keeping a written password list or using simple passwords leaves you vulnerable. 

Consider a credit freeze

While kids and teenagers typically don’t have a credit score, it’s a good idea to have everyone in your family check their credit report at least once a year. You can get a free annual credit from AnnualCreditReport.com. If you do find a credit report for any of your kids, take a close look for signs of fraud. Any unauthorized accounts should be reported to the authorities immediately. 

By putting a credit freeze or credit lock on each child’s Social Security number, you can prevent scammers from opening an account in their name. Otherwise, they could be the victim of identity theft but might not find out until they’re old enough to open bank accounts or apply for a job or student loans. 

You can do this by contacting each credit reporting agency separately: Equifax, Experian, and TransUnion. Your child can later freeze and unfreeze their credit whenever they need to open an account or apply for a loan. 

What to do if you or your child are victimized by a scammer

If you or a family member has been taken advantage of by a scammer, you should notify your local law enforcement immediately. You can also report it to the Federal Trade Commission (FTC) and the FBI’s Internet Crime Complaint Center. The FBI also has additional information on scams and fraud available online.  

If your personal information has been compromised, or you’re the victim of identity theft, contact the nation’s three credit reporting bureaus listed above to see if accounts have been opened in your name, and to put a freeze on your credit.  

Start the conversation and stay vigilant

Online scams are becoming more sophisticated, and young people are often the most vulnerable. By staying informed, talking openly with your kids and reinforcing safe online and financial habits, you can help reduce the risk of fraud and identity theft. A few ongoing conversations and proactive steps today can help protect your family well into the future.