By Marlene Ross and Angelena Mascilli

In 2025, people under the age of 20 reported more than $67 million in internet crime losses, according to the FBI.¹

So how prepared are children today to protect their future wealth? With rapid technological advances and an “on-the-go” lifestyle, do they have the tools to spot fraud?

Taking steps to help secure your children’s financial future should start early and be an ongoing process. Unforeseen changes in circumstances could place your children in a position to handle financial matters they may not yet feel prepared to undertake.

Here are five things you can do today to help elevate your children’s confidence in safely handling money.

Stay current on fraud threats and prevention best practices

Stay abreast of what’s happening by reading news about fraud trends and new technology – and by speaking with your financial team. Use that information to teach your children about the risks of sharing sensitive details about themselves and your family. Fraudsters use sophisticated tactics on social platforms to build trust and exploit lowered defenses.

• Protect your personal information: Consider freezing your credit with the major credit bureaus to make it harder for fraudsters to open lines of credit in your name. Parents and guardians may also be able to request a credit freeze for children.
• Watch out for scams: Phishing emails, vishing (voice phishing) calls and smishing (SMS/text phishing) communications are designed to elicit fear in order to get you to take an action. Validate the request and the requester by calling the company on a known phone number.
• Secure your devices: Never allow remote access to your device, and don’t click links or open attachments in emails, texts or social posts from unknown senders, which could activate malware that could harm your device or expose your personal data. Keep operating systems and antivirus software up to date.

Create an open dialogue around money

Take the taboo out of discussing finances so children can obtain a better understanding of what it takes to manage and protect wealth. Financial wellness often begins with general banking knowledge. Whenever possible, include them in financial decisions and explain the risks and opportunities of the actions you’re taking.

• Banking 101: Discuss how to select the appropriate account type when starting to think about saving and spending and the benefit of having greater security for your funds.
• Selecting a bank: Every financial institution offers different account options and features. Understanding your needs (and your children’s) and how you plan to transact can help narrow down options.
• Understand the agreement: Read the terms and conditions and ask questions before deciding to open an account, to avoid surprise fees and balance requirements.

Use financial tools safely

With the increase in child-friendly money management options such as making them an authorized credit card user or opening a custodial account, ensure your children understand the risks of sharing account or card details – or saving them – on unsecure online platforms. Enable account alerts to receive notifications of potential unauthorized activity and remember to immediately report fraud.

• Credit vs. debit cards: Financial tools have their own unique features. Credit cards may offer stronger protections against unauthorized transactions than debit cards. With debit cards, reporting suspicious activity quickly is especially important because the funds come directly from your bank account.
• Don’t overshare: Be wary of requests to disclose your sensitive information such as your online logins or banking details, which could be used to steal money from your account. Legitimate companies generally won’t ask for your full account number or password.
• Use legitimate websites: Exercise caution when using hyperlinks in emails, texts or social posts that could direct you to a fraudulent look-alike site. One way to protect yourself from this kind of fraud attempt is to type the website address directly into your browser instead of clicking on the link. When searching online, check that the website address is spelled correctly and matches the company’s official domain. Keep in mind that a padlock icon or “https” connection doesn’t necessarily mean a website is legitimate.

Beware of online imposters

Artificial intelligence (AI) continues to evolve, which can make it harder to know who you’re interacting with online. Remind children to be cautious if an online friendship quickly leads to requests for money – or pressure to meet in person – before they’ve verified who the person is. Be wary of interactions that are solely online.

• Romance/friendship scams: Scammers may use social media to gather details about you, your friends, family and other contacts, then use that information to create a persona and build trust over time. Once they’ve lowered your suspicions, they may ask for money or sensitive information using legitimate-sounding stories – often starting small and escalating. Remind young people to be cautious with online-only relationships, and also of scams specifically targeting their age group.
• AI and deepfakes: Technology advancements can help improve processes, but they can also be used to impersonate individuals and businesses. Be cautious of unexpected requests for money or sensitive information, even when a message, voice or video appears familiar. Verify a suspicious request through a separate, trusted channel.
• Safety first: Limit the amount of information shared on social platforms. Never allow anyone to remotely access your device as they could upload malware, gain access to sensitive data or lock you out of your system and demand payment to restore your access.

Prepare for financial emergencies

In the event of an emergency, are your children prepared to take action? Create estate and fraud prevention plans to ensure they know who to contact and how. Map out short- and long-term goals, grant access rights to trusted individuals and involve relevant parties. Periodically revisit these plans to make any needed changes.

• Add a trusted contact: Life is full of surprises. Identify someone your financial institution can contact in certain circumstances, such as when it cannot reach you or suspects fraud. Ensure they have all necessary details to contact and advise others should something unexpected occur. A trusted contact does not automatically have authority to act on your behalf.
• Make a plan: Partner with your banking and wealth management team along with other personally relevant individuals to map out your financial expectations and goals for the future. Consider formally designating trusted individuals who can act on your wishes in the event you cannot.
• Secure your documents: Keep all sensitive data locked away from those who should not have access to it, but ensure those who do need to know are aware of how to obtain it.

We can help

A J.P. Morgan advisor can answer your questions, provide advice on how to monitor your account for unauthorized activity and update you on emerging threats in the marketplace.