When you’re an adult, it’s easy to forget that what seems like common sense to you can be completely novel to kids. This is called the “curse of knowledge” – an unconscious bias where you assume that others probably already know what you know.
Young people, however, have less life experience and may be much more impulsive or overconfident, which means they’re highly susceptible to social engineering tactics. Scammers know how to play on their emotions, tempting them with flattery, a good deal or a way to game the system.
Recent Frauds Ensnaring Teens
In August 2024, a trend on TikTok encouraged people to take advantage of an “infinite money glitch” involving Chase ATMs. A technical malfunction allowed users to withdraw cash from these ATMs immediately after depositing a check – before the bank had time to ensure the check was legit. The teens who exploited this hack thought they were getting free money by writing a check to themselves for an amount higher than what they had in their account. But they had no idea they were actually committing check fraud, and many later found their accounts overdrawn when Chase corrected the issue.
“Money mule” scams are another type of fraud that have been on the rise recently. In these scams, criminals take advantage of a teen’s lack of legal knowledge and recruit them (usually via social media) to commit money laundering. To the teen, it just seems like easy cash – let this person deposit a sum into their account, and then keep a portion of it while the rest is transferred out soon after. However, this makes the teen complicit in the crime.
Kids are growing up in a time of digital connectivity, living much of their lives online. Many adults assume that since these young people have grown up with a phone or iPad in their hand, they should be naturally adept at spotting online danger. Clearly, this is not always the case.
Scams that seem obvious to adults may not be so obvious to kids and teens who aren’t as familiar with both laws and liars. Members of younger generations may have huge blind spots when it comes to their online and financial safety.
How Banks and Credit Unions Can Help
The best defense against young people becoming victims of fraud or being duped into illegal activities is by teaching them early and often about what to look out for. If they have their own checking or savings account, it is also crucial that kids understand how basic transactions work, especially in this digital age when money can move fast.
For financial institutions, it is more important than ever to provide advice and learning materials geared toward the younger generations. And as parents and teachers can attest, kids are often more likely to heed information when it comes from a neutral or more distant party. Banks and credit unions, who are often seen as trusted sources in their communities, may have young people’s attention even when they tune out the usual sources of advice.
Educational materials shouldn’t just cover common scams, either. General knowledge is just as important – especially if kids aren’t learning financial basics in school. In the “infinite money glitch,” the “trick” was not new, but it took off because many of the young victims didn't understand what happens when they deposit a check and therefore couldn't foresee the consequences.
At image.works, we are adept at writing about fraud and financial education for all age groups. If you need assistance, we would be happy to help you write newsletter articles, blogs, emails and more. Don’t hesitate to reach out!
Sources:
https://www.idwatchdog.com/teen-money-mules
https://slate.com/technology/2024/09/chase-atm-money-glitch-viral-tiktok-trend-fraud.html
https://www.experian.com/blogs/ask-experian/common-scams-targeting-children-teens/
https://www.investopedia.com/financial-edge/1012/common-scams-targeted-at-teens.aspx