Digital Safety and Scams for Kids: Why Fraud Awareness Is a Core Part of Financial Literacy Today

Updated: 4 days ago

Recently, we were forwarded a CBC article discussing the growing disconnect between how confident teenagers feel about using money and how prepared they actually are. Teens are comfortable with technology, spending apps, gaming platforms and social media, but they are far less confident when it comes to identifying financial risks or scams in those same online spaces.

Fortunately, kids are quick learners, and simple conversations can dramatically improve their digital safety. Awareness is the first step, and small changes in daily habits create big improvements in confidence.

What the Research Shows

Teens Are Highly Active Online

Young people spend significant time in digital spaces. Statistics Canada reports that at least 45% of Canadians aged 15 to 24 check their smartphone every 30 minutes (2021).¹ This constant connectivity expands learning and social opportunities, but also raises their exposure to digital risks.

Children also make online financial decisions earlier than ever. UNICEF research shows that many children make in-game purchases, app purchases or subscription-based transactions without fully understanding how charges work, what hidden fees may apply, or how scams can appear inside games and digital ecosystems.¹

New National Fraud Data Confirms Youth Vulnerability

The 2024 Annual Statistical Report - Canadian Anti-Fraud Centre (October 2025) provides three key insights together: youth are more likely to be victimized, fraud in Canada continues to rise overall, and most of today’s scams now take place online.

According to the report:

Individuals aged 19 and under are more likely to be victimized by fraud (p. 5).⁷

Fraud reports continue to rise nationally, with 108,878 reports filed in 2024, representing $643.7 million in losses (p. 5).⁷

Cyber-enabled fraud accounts for $481.6 million, or 75% of all losses, showing the central role online environments play in modern scams (p. 13/14).⁷

There is a growing trend from job scams, often aimed at young people seeking flexible online income, which rose by $17 million in 2024 (p. 5).⁷

While these numbers may feel concerning, they highlight a powerful opportunity: with the right guidance, kids can become safer and smarter online. Knowing the risks makes it much easier to protect kids.

Why Online Safety Matters for Financial Literacy

The CAFC report reinforces the growing gap highlighted in the CBC article. Although teens feel confident navigating technology, their confidence does not translate into financial awareness or scam recognition.

Specifically:

Scams increasingly use online features teens trust: rewards, upgrades, peer-like messages, urgent pop-ups or "exclusive offers."
Scams also mimic gaming rewards, influencer messages, and digital job offers and are actively growing year over year.

In other words, being tech-savvy does not mean being scam-savvy.

The encouraging part is that financial literacy and digital safety can go hand in hand, and parents can build both together. Most kids are likely to be proud to show they can recognize a scam once they’ve learned the signs.

Kids need to understand how digital purchases work, how online platforms make money, and how fraudsters manipulate emotions and behaviour as much as they need to understand budgeting, saving and spending. Financial literacy now includes navigating online offers and making safe digital financial decisions.

Kids are learning and spending online earlier than ever. Helping them recognize risks is essential to protecting both their money and their confidence.

Common Digital Dangers Kids Face

Understanding what scams look like is the first step in keeping kids safe.

Phishing attempts that mimic real companies
In-game scams offering free coins or upgrades in exchange for card details
Social engineering messages from strangers pretending to be peers or influencers
Fake apps or links designed to steal personal information or install malware
Job or “easy money” scams, including fake offers to earn quick cash by clicking links, taking surveys
Online quizzes and viral personality tests that quietly collect personal details that can later be used for targeted fraud or password-guessing

A single mistake can expose personal data, payment information or family financial details.

Kid-Friendly Tools and Resources

Below are the resources we have completed with our own kids, and some resources we follow:

Google Interland (Be Internet Awesome) provides free interactive lessons on privacy, phishing and safe sharing: Play Interland - Be Internet Awesome
Canadian Anti-Fraud Centre: antifraudcentre-centreantifraude.ca maintains real examples of active scams
MediaSmarts | Digital & Media Literacy for Canadian Kids:
MediaSmarts is a Canadian digital literacy organization, offering games, videos and lesson plans that teach kids about online privacy, misinformation, scams and responsible digital behaviour: https://mediasmarts.ca

Simple Rules for Digital Money Safety

Once kids can spot the risks, they need simple rules to guide them online.

Never share PINs, passwords or one-time verification codes
Ask a parent before making any online purchase
Look for the lock icon and “https” on secure websites
Avoid clicking links from unknown contacts
Remember: if it seems too good to be true, it usually is
Use strong passwords with short phrases such as “DogBones4Ba1ley”
Avoid purchases on public Wi-Fi networks

These habits help kids build safe digital routines they will carry into adulthood.

Create a Family Scam Checklist

A simple checklist empowers kids to pause and think before reacting to a message or offer.

We recommend the RBC resource "Cybersecurity Checklist: Online Safety for Kids & Teens" for families wanting a more comprehensive guide. You can find it here: Cybersecurity Checklist: Online Safety for Kids & Teens (PDF) https://www.rbc.com/community-social-impact/_assets-custom/pdf/checklist-for-kids-and-teens-en.pdf

Takeaway

Digital tools help kids learn, shop and save. Digital safety helps them do it confidently. When families teach these habits early, children grow into smart digital citizens who know how to protect their money and their privacy.

Sources

¹ Statistics Canada. Table 22-10-0115-01: Frequency of Internet Use, by Age Group.

² Statistics Canada. Cybercrime in Canada, 2022. Juristat (2024).

³ UNICEF Global Insights. “Digital Literacy for Children.”

⁴ UNICEF. The State of the World’s Children 2017: Children in a Digital World.

⁷ Royal Canadian Mounted Police – Canadian Anti-Fraud Centre. 2024 Annual Statistical Report Canadian Anti-Fraud Centre. Date Modified: 2025-10-14. (All page references correspond to this publication.)

Important Disclosure and Disclaimer

Educational Only: Not Financial Advice. The information shared by Financial Kid Academy, including this article on digital safety and online scams, is provided for educational and informational purposes only. It does not constitute financial, investment, legal or professional advice. The content reflects our research and understanding of publicly available information at the time of publication. Online safety recommendations, fraud risks and digital tools may change over time. Readers should verify details through official regulator or organization websites.

Accuracy and Sources. This article was compiled using Financial Kid Academy’s independent research, including information from the Canadian Anti-Fraud Centre, UNICEF, RBC, and the Canadian Foundation for Economic Education. While we aim to provide accurate and current information, no guarantee of completeness or ongoing accuracy is made.

Privacy Notice. Financial Kid Academy will never request personal or financial information beyond basic contact details voluntarily provided for newsletters or community updates.

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Independence Statement. Financial Kid Academy is not affiliated with any regulator, financial institution or organization mentioned in this article. References are provided for educational purposes only.

Final Note. Every family’s financial situation and comfort level with digital technology is unique. We encourage parents to consult qualified professionals when needed and to choose tools and approaches that best support their own household.