Digital Literacy for Kids: Tips for Outsmarting Scammers

Your kids are growing up in a digital world. They game with friends, chat virtually with classmates, watch videos and browse online marketplaces. These experiences help them connect, learn and build independence. But they also create opportunities for scammers who target children and teens for their money and personal information. 

Kids are among the fastest-growing groups falling victim to online scams. Victims under 20 lost $312 million in 2023, which represents a sharp increase over past years, according to Social Catfish’s analysis of fraud trends.

Screen time limits or parental controls are important in managing your children’s internet safety. But the most effective way to help protect your child from online scams is to teach them digital literacy skills. This includes showing kids how to recognize when something doesn’t feel right online. When they understand how scams work and the red flags to watch for, they’re better prepared to protect their accounts, identity and money.

What digital literacy means for scam prevention

Digital literacy goes beyond knowing how to use apps or devices. It’s the ability to pause, question and evaluate the content they’re seeing online, especially when money or personal information is involved. It’s one important step toward digital citizenship.

For kids, digital literacy includes skills like:

• Noticing when a message creates a sense of urgency or pressure
• Questioning why someone wants login details, gift cards or payment information
• Recognizing offers that sound too good to be true
• Knowing when to stop and ask a trusted adult for help

As new platforms and technologies emerge, and as scammers become more convincing, kids who learn how to think critically can adapt and respond safely. Those habits can also help them make smarter decisions offline as they get older.

How scammers target children and teens

Scammers know kids feel comfortable online. Many kids navigate apps, games and social platforms with ease. But experience doesn’t always come with an understanding of financial risk or long-term consequences.

In the real world, kids are taught to be careful when a stranger approaches them in a store or on the street. Online, those same instincts don’t always kick in. Scammers count on that, and they create situations that feel normal—like a friend request, messages from someone who shares their interests or a limited-time deal—to build trust.

Kids and teens are appealing targets for scammers because they’re more likely to:

• trust messages that appear to come from peers, influencers or platforms they recognize
• feel pressure to act quickly so they don’t miss out
• worry about getting in trouble if they make a mistake

Common scams that put kids’ money and identity at risk

Scam tactics change, but many follow similar patterns. Here are the most common scams your child might encounter online.

Fake giveaways and free offers

These scams promise free in-game currency or exclusive items. For example, one common Roblox scam involves offering free Robux in exchange for account information. A similar Fortnite scam offers free V Bucks. Once scammers have the information they want, they can take over the account and lock your child out.

Phishing messages

These look like they come from legitimate companies or friends, but they’re designed to steal identifying information. Your child might get a message claiming their gaming account will be deleted unless they verify their details. The goal is to trick them into sharing sensitive or personal details.

Fake jobs or money-making schemes

Scammers target young people with promises of easy money for online work, taking surveys or reselling items. These scams often ask for upfront payments or bank account details, and then the promised money never shows up.

Friendship or impersonation scams

Scammers work to build relationships over time through messaging apps or community servers, including platforms like Discord. They might spend weeks building trust before making their request, which makes the betrayal feel even worse. Once they have gained the child’s trust, they’ll ask for money, gift cards or help accessing accounts. 

Account takeover scams

Scammers can gather details about your child from public profiles or previous messages. This information can help them guess passwords or trick kids into sharing them. Once the scammer has taken over your child’s account, they can use it to scam others or make unauthorized purchases. 

Teaching kids to recognize online scam red flags

The best defense against scams is teaching your child to pause and question what they see online. These red flags don’t guarantee something is a scam, but they’re signals that can help them pause and take a second look before doing anything:

• Requests for passwords, one-time codes, their birthday or any account details
• Urgent phrases like “verify now or your account will be deleted” that pressure them into reacting quickly
• Pop-up and email offers of free money, rewards or exclusive items
• Requests for money, gift cards, payment app transfers or cryptocurrency
• Links or downloads from unknown sources or unexpected messages
• Requests to keep conversations secret or to move them to a different platform

Scammers show up where kids already leave a digital footprint, like gaming platforms, direct messages, phone messages, Discord servers and YouTube comment sections. Teaching kids to recognize warning signs helps them protect their accounts and personal information.

How to talk to your kids about scams and online safety

Conversations about scams work best when they’re ongoing and supportive. The goal is to have an open discussion about responsible online behavior. You want your child to feel comfortable asking you questions and sharing their concerns. Here are some ways to start.

Make it part of everyday life

Try to bring up the topic naturally. Use news stories about a scam or something your child mentions happened online as a conversation starter. Ask what they think about it or if they think they’d respond.

Ask open-ended questions

Questions like, “What would you do if someone you don’t know asked for your password?” or “Have you ever seen offers for free in-game items?” encourage discussion instead of yes-or-no answers. Listen to their responses without judgment so they’ll keep talking to you.

Share your own experiences

Show your child a phishing email or scam text you received. This helps normalize the idea that scams target everyone and that smart adults pause and question things, too.

Focus on problem-solving together

If your child has clicked on a suspicious link or shared personal information, don’t focus on the negative consequences. Work through the next steps together. Kids are more likely to ask for help when they know mistakes won’t automatically lead to trouble.

What families can do to reduce scam risk

Conversations are important, but concrete actions can give you and your child an extra layer of protection online. 

Turn on two-factor authentication (TFA or 2FA)

This adds an extra security step when logging into accounts, even if someone gets your child’s password. They won’t be able to access the account without the second verification step—usually a temporary code sent to your phone or email address.

Review privacy settings together

Go through your child’s gaming accounts, social media profiles and apps with them. Adjust settings to limit who can contact them, see their posts or access their information. Do this regularly as platforms update their privacy options.

Be thoughtful about what you share online

Many online scams use publicly available information to target victims. Help kids understand the different ways scammers research their targets and how what they share can be used against them online. The same goes for parents, so be careful of what you share online, too.

Monitor accounts for unusual activity

Keep an eye on login notifications, purchase history, unusual activity and account changes. Many platforms can send you alerts so you can be aware and take action quickly.

Set up spending controls where possible

If your child’s gaming accounts are linked to a payment method, use parental controls to set spending limits or require approval for purchases. This prevents unauthorized charges, even if an account is compromised.

Act quickly if something happens

Change passwords immediately, report the scam to the platform and review financial accounts. Navy Federal members can report suspicious activity online or by calling our member services team.

Keeping your family safe in a digital world

Digital literacy is an ongoing conversation. As your kids grow and explore new platforms, the habits they learn now can help protect their money, identity and overall well-being.

Navy Federal Credit Union is your partner in security. From account monitoring tools to fraud protection resources, we’re here to help you keep your family’s finances secure. Be sure to check out our Security Watch roundup of common scams and other financial education on cybersecurity.