Getting kids started with money early can help build their financial awareness and set them up for success later in life. In the past, this may have meant teaching them how to use a checkbook or balance a budget. But today, with apps, digital banking and online shopping part of our everyday lives, financial education should also include how to be safe and responsible with online finances.

With a recent rise in scams and fraud that can target teens and young adults, it’s important for parents to teach their kids how to recognize risks and stay safe in the digital space. Here are some common scams to watch for, and steps parents and kids can take to protect themselves.

Common Scam Examples

• Social Media: Among scams common to social media are those involving identity theft, such as surveys or contests that request personal information. In these cases, the scammer poses as someone they are not and befriends the victim with the intention of taking money, personal information, or more.
• Online Shopping: When teens shop online for the latest iPhone, state-of-the-art headphones or other popular item, they can be lured into phony websites that take their money and sell them nothing, request their information to be used for purposes of identity theft, or trick them into clicking on malicious links. Often, these websites will list an item for a fraction of the retail price that sounds too good to be true – and, unfortunately, it is.
• Talent or Modeling: Acting and modeling scams can be found all over the internet, and usually involve the scammer asking for money up front to secure a spot. Another similar scam is where teens are urged to submit artwork, music compositions, or creative writing, and are required to pay an entry fee for the chance to win a cash prize. Spoiler alert: The entry wins, and teens are hit up with an additional fee or fees to supposedly help with the cost of promotion and publication.
• Online Auction: These types of scams target unsuspecting youth in various ways. One example involves an auction that the teen wins for an item that doesn't exist or never arrives—even after paying for the item. Alternatively, the teen may be encouraged to auction off their own possessions, and the scammer, pretending to be the auction house rep, will ask for the item to be sent in advance (before the buyer's payment arrives or even before bids are placed). Of course, the funds never arrive, the auction never happens, and the scammer disappears with the item.
   

Digital Safety Best Practices

To help combat these risk, teens and kids can follow these best practices online:

1. Log out of your online banking or mobile app session after you’re finished.
2. Be careful when using your phone or computer in public – assume someone could be watching, and never leave your device unattended.
3. Keep your devices updated with the latest versions of software and anti-virus protection.
4. Change passwords every 2-3 months, and use strong combinations of numbers, characters, and upper- and lower-case letters. Do not use common words or dates.
5. Never share your password or account information with anyone, even a friend.
6. Set up transaction alerts for your bank account. If you get an alert for a transaction that you did not make, immediately contact customer service.
7. Never access your bank account through hyperlinks in emails, pop-up ads, or search engines. Go directly to your online banking URL or use the official banking app.
8. When purchasing something online, learn to spot fake websites. Look for spelling errors, fake logos, strange images, incomplete web addresses.
9. Never send money to anyone that you do not personally know and trust on the internet or from your phone.
10. Avoid using public computers and public networks when accessing your bank account.
     

Bank Safely at Bell

At Bell, America’s Best Checking™ for Students is a safe, smart banking option for parents and kids age 10-17. The account provides a range of free features for students, as well as safety and visibility controls for parents to monitor spending and account activity. Visit a Bell Bank branch near you to open an account today.

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