In today’s digital age, raising financially responsible kids means equipping them not only with money management skills but also with the knowledge to navigate and avoid online scams.
Katie Knight, Apple Federal Credit Union’s Community Engagement Officer, sat down with Emily Odom, an Assistant Special Agent in charge of the FBI Washington Field Office, to discuss the growing threat of online fraud and how to prevent it.
“There’s a common misconception that, when we’re talking about fraud, only elders are being targeted,” says Knight. “At least at Apple, that’s not the whole story. About a quarter of the fraudulent transactions that we’re seeing are happening to Gen Z.”
Odom agrees, noting that Gen Z’s pursuit of financial independence can make them particularly vulnerable. “I think probably the biggest threat to your family’s finances is going to be a scammer sitting behind a computer, someone that’s using AI-generated photos or videos or even voice to target people in a specific way that makes them more likely to respond to it.”
Recognize the Red Flags
To help parents protect their children, Apple FCU and the FBI encourage parents to be on the lookout for the following signs:
- Urgency: Scammers often pressure victims to act quickly. Be wary of any communication that demands an immediate response.
- Unsolicited Contact: Be suspicious of messages or calls from people you don’t typically communicate with, especially if they request personal or financial information.
- Requests to Turn on Camera: Scammers may try to coerce victims into turning on their cameras for illicit purposes, including financial sextortion.
- Shady Charges: Monitor your child’s accounts daily for suspicious activity, including small charges that may indicate fraud.
Open Communication is Key
Both Odom and Knight stress the importance of having regular, open conversations with your children about scams. “I think it’s just ensuring the conversation is part of your normal day-to-day life, and it’s not something you’re throwing at them when they least expect it,” Odom says.
Start talking to your children about online safety and scams at a young age. No age is too young to begin the discussion.
Odom recommends having a detailed discussion whenever a child gets access to a new device or online service. “Before you give them access to something, make sure they understand what they’re getting into,” she says.
Common Scams Targeting Youth
Fake Job Offers
Scammers may lure young people with promises of high-paying jobs that turn out to be fraudulent.
Phony Investments
Be cautious of investment opportunities that seem too good to be true, especially those promoted through social media or unsolicited messages.
Financial Sextortion
Odom highlights the dangers of financial sextortion, where scammers use compromising photos or videos to blackmail victims.
“Someone takes photographs of them and then approaches them later, saying, if you don’t pay us money, then we’re going to share these photographs with your friends and family,” Odom explains. “It’s a huge issue, which could be really scary, especially if you haven’t built that relationship with your child to feel safe and comfortable, to tell you about something that’s going on in their lives.”
What To Do If Your Child Falls Victim
- Reassure Them: “I think the first thing you have to do is tell the child ‘It’s not your fault’,” says Odom.
- Gather Information: Collect as many details about the incident, including who they were communicating with, what information they shared, and any screenshots of the interactions.
- Report the Crime: Share the information with law enforcement, such as your local police or the FBI.
- Notify Your Financial Institution: Knight emphasizes the importance of informing your bank or credit union. “When you’re notifying your financial institution… we’re going to see trends,” she says. “Because if we’re seeing a rise in a certain type of fraud… we’re going to be able to communicate that with the local authorities in order to help identify what’s going on.”
The Growing Threat of Fraud
Odom warns that fraud is a persistent, growing problem. “Historically, every year, fraud is on the rise,” she says. “I don’t know that we’ve seen a year where it’s declined, which means people are still falling for the same scams and enticements.”
By staying informed, maintaining open communication with your children, and working with trusted financial institutions like Apple Federal Credit Union, parents can play a crucial role in protecting the next generation from the dangers of online scams.
