This content is sponsored by Apple Federal Credit Union.
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. Apple Federal Credit Union and the FBI are joining forces to educate parents and young people about the growing threat of fraud.
“I think there’s a common misconception that when we’re talking about fraud that only elders are being targeted,” says Katie Knight, community engagement officer at Apple Federal Credit Union. “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.”
Emily Odom, assistant special agent in charge at the FBI’s Washington Field Office, 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,” Odom warns.
To help parents protect their children, Apple FCU and the FBI offer the following advice:
Recognize the red flags:
- Urgency: Scammers often pressure victims to act quickly. Be wary of any communication that demands an immediate response.
- Unsolicited contact: Be suspicious of messages/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: Knight advises parents to monitor their accounts daily for suspicious activity, including small charges that may indicate fraud.
Open communication is key:
- Ongoing conversations: 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.
- Age-appropriate education: Start talking to your children about online safety and scams at a young age. No age is too young to begin the discussion.
- Device and service awareness: 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.”
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.” Apple Federal Credit Union also encourages a “see something, say something” approach, as their staff is trained to recognize and address potential fraud.
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.
