Gen Z and Gen Alpha are digital natives. They’ve grown up with devices galore, so it's no surprise that they’re tech-savvy and confident online. That said, even the brightest kid or teen is still more trusting than most adults, making them vulnerable to various online scams. So helping kids see how easy it is to fall for scams is an important step towards keeping them safe online.
During the past three years, America’s seen an unprecedented rise in cyber attacks and malicious cyber activity. In 2022, the FBI’s Internet Crime Complaint Center (IC3) received 800,944 complaints covering a wide range of internet scams affecting victims across the globe. (An average of 2,175 daily.) Young people under 20 made 15,782 of those complaints.
According to the FBI’s latest internet crime report the total loss from cybercrime has grown from $6.9 billion in 2021 to over $10.2 billion in 2022. In 2021, $101.4 million was lost by young people under 20 to scammers. And that figure has jumped to a whopping $210.5 million in 2022.
The top three cybercrimes reported were phishing scams, non-payment/non-delivery scams, and personal data breaches. But according to the FBI, the methods used by perpetrators continue to increase in scope and sophistication and come from all over the world. What’s more, one complaint may have multiple crime types.
This means that no matter how smart and internet savvy your child is, they are vulnerable to cleverly-devised scams designed to target their vulnerabilities and desire to do good.
How to keep kids safe online and protect their money and identity
So what’s the best way to keep kids safe online and help them understand how to protect their money and identity? “It all starts with a conversation,” says Louise Hill, co-founder and COO of GoHenry. "Knowledge is power, and regular discussions around the nature of scams and why teens (and adults) are targeted can help raise awareness of the issue. This means not only talking about how they may be scammed, but bigger issues such as money theft, identity fraud and how others can steal their data."
Clinical psychologist Linda Blair agrees, and told GoHenry, “It’s very important for parents to talk to their children and teens about scams, and to realize that it’s not gullibility that makes kids fall for these con tricks. Mostly it’s impulse control, and the fact older kids have trouble waiting. So a typical teen will read something and instead of thinking they feel compelled to act immediately. As a parent, you can help them avoid this by making sure you’re informed about the latest scams and addressing the fact that they need to stop and think if they don’t want someone to take advantage of them.”
16 most common online scams targeting kids
It pays to know what sort of online scams your kids may encounter. Here are some of the most common ones, currently::
Text message scams
From 2020 to 2021 there was a dramatic uptick in the number of scam texts Americans received. Numbers more than doubled (58%) to an average of 41 texts a month. And less than 35% of people realized they were the target of a scam texting attack. The 2022 IC3 report reveals 300,497 victims were successfully scammed through phishing.
Phishing texts are phony messages claiming to be from a legitimate source or website. They can even appear to come from friends. Or friends of friends. They’ll typically ask your child to confirm their password, user information or debit card details. Or they may contain links.
“Hey, wanna go out this weekend? Caleb gave me your number. Check out my profile here: [URL]”
Sounds innocent enough, doesn’t it? But tell your teenager that before they click on a link in a text, they should stop and think. It kind of rhymes too:
In fact, before they respond to a suspicious or unusual message they should:
STOP: Take five before responding.
THINK: Does this request make sense? Are they asking you to click on a link? Or share a PIN code they sent you? Are they asking for money? Remember, scammers prey on people's kindness, trust, and willingness to help.
CALL: Verify that it is your friend or family member by calling them directly or asking them to share a voice note. If it turns out to be untrue, report It to the Internet Crime Complaint Center (IC3).
Celebrity scams
Make sure your kids also know about fake social media and messaging scams featuring celebrities they like and follow. These usually take the form of fake social media accounts that are designed to mirror real celebrity accounts, fake online videos where a celebrity seems to be endorsing a money-making product or service or a direct message asking for money from someone well-known.
Be sure your child knows that no celebrity would even DM a fan, or ask fans to send money. And when celebrities endorse or push a product they are required by law to make it clear on the post that their social media post is an advert or paid partnership. And again they would not ask fans to send money to an address or account.
If your child is ever unsure about a social media account, ask them to look for the blue verification tick, or suggest they ask you to get you to check the account. Look out for stolen images that have all been posted on the same day, strange spellings of names or any account/person that asks for money.
Apple Pay Scams
Apple Pay is a secure and convenient method of making payments using Apple devices. However, scammers may try to exploit users through various tactics. Some of the most common Apple Pay scams include scammers calling or sending fake emails, text messages, or pop-up notifications claiming to be from Apple.
These messages may ask your child to re-authenticate their Apple Pay. update their Apple Pay account, verify their identity, or resolve a problem. The goal is to trick them into providing personal information, such as their Apple ID, password or passcode, or financial details so they can take control of Apple Pay. Apple will never ask anyone to call them or put a pop-up to do so on your screen. Always call the official Apple number when in doubt.
Scammers may also pose as Apple tech support representatives, claiming there is an issue with their Apple Pay account or device. They may ask for remote access to the device or request payment for their "services."
Finally, let your kids know about money-flipping scams. Investment scams were the costliest schemes reported to the IC3 in 2022. Money-flipping is just one such scam.
Warn your teenager these types of scammers promise to multiply their money if they send them an initial payment through Apple Pay. Scammers usually claim to have a secret investment or business opportunity that guarantees high returns. Get your kids to remember, if an offer seems too good to be true, it probably is.
Smishing scams
Smishing is when a scammer tries to get a user’s personal or financial information via SMS or instant messaging (on social networks) or a voicemail call by pretending to be a bank or a credit card company or even a delivery service who has a parcel.
Messages can be anything from fake warnings about fraud on your account, to lost passwords, requests for your kid to collaborate with a brand for money, or monetary rewards that urge a user to act quickly. The texts all have a link to a website where you are asked to enter personal or banking details and, to seem more credible, the website often shows the bank or the company logo.
Again, reinforce the message that your kids should NEVER click on any links or give anyone their personal information in texts, emails and direct messages online.
Online shopping offers and prizes scams
Purchase scams – where someone is tricked into buying a product that doesn’t exist – are also common. The latest Federal Trade Commission data (2023) reveals that 2.4 million consumers were affected by fraud in 2022. The third highest reported loss was from online shopping scams.
These scams take the form of social media posts, direct messages, texts and online offers, promising luxury goods like new iPhones, designer items and even VIP tickets to meet someone famous all for amazingly cheap prices. The aim is to entice young people (and adults) to hand over cash but also to give scammers their personal information.
With older teens, warn them to look out for app scams that claim to be able to tell you who’s been looking at (or stalking) your social media profile. This scam tends to be attractive to teenagers who want to see how popular they are. But all these apps do is collect personal data by introducing malware (viruses) to harvest personal data.
Pet purchase or rescue
Using pets as a lure is a very popular scam designed to target kids and pull at their heartstrings. It usually involves a puppy, kitten or another animal and states there is a limited time to save or buy this animal. To help, the scammer urges kids to send money right away.
Crypto assets and NFT investment scams
Cryptocurrencies like Bitcoin, Ether, and NFTs (non-fungible tokens) are often seen as quick ways to get rich. Because of this, scammers target anyone searching for investments online or kids looking to earn money fast.
Some scammers offer Bitcoin as prizes or high returns for investments; some even provide more realistic returns for a small amount of cash. As always, if it sounds too good to be true, it's a scam.
Fake contests
Another popular online scam is the “you have won a prize” one. You may get a text, a message on social media, or an email saying you have won a new smartphone, tablet, or a gift card for something. It’s usually from a fake contest you have no memory of entering.
It's a scam if:
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they ask you to pay to get your prize (even if it's a small amount)
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pay more to win more
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ask for financial details.
In 2022, prizes, sweepstakes and lottery scams were 3rd highest in the top five fraud categories reported to the FTC.
Online quizzes
Online quizzes are scams on a mission to grab your personal information. They do this in various ways. The idea is to get you to click a link and verify who you are then supply your financial or personal information or even money to get your quiz results.
Talent scouting scams
Acting, modeling and ‘be-an-influencer’ scams are rife on social media as scammers prey on what they know are appealing careers.
For modeling, scammers often offer a photo shoot or classes to help you get a portfolio or jobs. Both come with a high price ticket.
Acting and extra scams include paying for auditions, paying for someone to be your agent and paying to be in an acting agency.
No reputable model or talent agency would ever ask for money upfront for any of these things.
Pop-up scams
Pop-up scams aim to make you panic and do something like hand over details or money before you have time to think. Usually, a pop-up claims you have a virus and must pay to get rid of it. Legitimate antivirus software companies don't work like this.
Money transfer scams
A money transfer scam is often disguised as a part-time job to work from home and become a transfer manager. You may get a scam ad or an email or text. The 'job' is to receive a payment into your bank account, take it out as cash and then send it using a money transfer service elsewhere. You may be told it's for a good cause or a charity, but this is how criminals launder money.
Online gaming scams
Due to the time and money spent on in-game purchases by players, the online gaming world has become the ideal place for fraudsters and scammers to operate. Look out for scammers offering cheat codes, power-ups, unlimited downloads and access to unique skins and armor, all for money. They will usually be on gaming message boards or will send you a message.
Financial aid scams
Financial aid scams are schemes that target individuals offering help with education or even living needs. The scams often promise free money, government grants, and loans with low-interest rates. All ask for an upfront fee or personal information such as your bank account details.
"Free" service scams
"Free" service scams are scamming schemes that promise a complimentary service or trial period but then charge hidden fees or subscription fees without the user's knowledge or consent. These scams can take many forms, including free trial scams, free virus scan scams and free prizes. Scammers entice you to sign up with your personal information and later charge you large sums of money.
Blackmail scams
An anonymous person will text or message you through social media. They’ll say they have information that you visited an adult site, or embarrassing pictures of you that they will expose if you don't send them money.
These emails are attempting to scare you into handing over money. They don’t have any information about you, so don’t respond or click on any links. Delete the email; if you’re worried about it, talk to someone you trust who can reassure you.
12 ways to avoid falling victim to scams
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NEVER hand over your personal details. No reputable bank or financial company would ever ask you to share personal information by direct message, text, or during a phone call.
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Always carefully check logos and official-looking texts and emails BEFORE answering. If they’re unsure, remind your child to check with a parent. For example, all official GoHenry emails come from one of our gohenry.com/us/ emails. On a phone call with GoHenry, members will be taken through security to confirm who they are before discussing any account details.
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Also beware of fraudsters who set-up fake accounts on social media. These people then message via DM asking you to do something i.e. provide information or follow a link. Look for an official blue tick on social accounts saying the owners are from well-known organisations..
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Be careful with any link you're asked to click on in texts and emails, and be wary when asked to give out your personal information. When in doubt, always ignore the link, go to the official website and log into your account directly through the trusted and official landing page.
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Don't download anything from a source you’re unsure about.
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Avoid retailers/sale sites you’re unfamiliar with, or take time to check out their reviews online before shopping with them.
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Look out for texts, emails and social media adverts with spelling mistakes, strange logos and phrases. These tend to be fake. Verified accounts will always have a blue tick.
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Be careful about payment: never pay someone you don't know and haven't checked out.
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Always try to do a background internet search on companies and people who contact you.
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If in doubt, don't respond or send any information, even if a message looks like it’s from a friend.
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If you're worried about a friend, call to check if they are okay. Don't assume a message is from them, especially if it sounds strange or unlikely.
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If an offer sounds too good to be true, it’s probably a scam.
What to do if your child has fallen for a scam
It can be very frightening and upsetting to realize you’ve been targeted or scammed. For this reason, teens and kids often feel they can't tell you if it’s happened to them.
Reassure your kids that no matter what happens they should always tell you if they’ve handed over information or money. As soon as possible.
You can report all fraud and cybercrime to these government authorities:
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Internet Crime Complaint Center (IC3) — for internet-related criminal complaints. After receiving a complaint IC3 sends it to federal, state, local or international law enforcement.
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Federal Trade Commission (FTC) — shares complaints with all levels of law enforcement. Although the FTC can’t resolve individual complaints they’ll tell you the next steps to take.
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EConsumer.gov — for complaints about online shopping and e-commerce transactions with foreign companies.
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Department of Justice (DOJ) — internet or intellectual property crimes.
You should also contact your card company to let them know about unauthorized charges. Or if you think a scammer has stolen your card details.
If you’re worried your child has been targeted by scammers, or have concerns about any of the issues mentioned above, please get in touch with us via Live Chat. We’ll be happy to help.
