By Melissa Grant
Teens spend a lot of time on the internet, so it should come as no surprise that they are being targeted by online scammers.
What’s concerning, however, is the amount of money they’re losing is growing.
Latest figures from the ACCC show that Australian children under the age of 18 lost more than $170,000 to scams in 2018 – an increase of 47 per cent on the previous year.
A total of 1149 children reported being scammed last year, up from 1004.
The biggest losses were to online shopping scams, followed by prize or lottery scams and classified advertising scams.
Teenagers are particularly vulnerable to scams because their developing brains make it difficult for them to spot one, not to mention the amount of time they spend online.
So what can parents do?
Suncorp Behavioural Economist Phil Slade says teaching children financial literacy is the key.
“One of the best ways to help our teens avoid being scammed is to teach them financial literacy skills at an early age, to help them question things when dealing with money,” he explained.
Mr Slade says teenagers are unable to make decisions or solve problems as quickly as adults because their prefrontal cortex is still developing, which makes them naturally more susceptible to being misled.
He said many teens fall for fake online shopping sites that promise bargains but deliver nothing.
“Many can act impulsively, they see something they really want, it looks cheap and they want to click on it and pay before they miss out,” he said.
Social media, online games and email are common vehicles that scammers use to lure potential victims.
The ACCC advises people be vigilant on social media, when shopping online and when answering the phone.
The consumer authority also advises to never give anyone personal details, banking details or remote access to your computer, no matter who they say they are.
Scams should be reported to Scamwatch or ACORN to warn others and help get those responsible tracked down.
TALKING TO TEENS ABOUT SCAMS
- Be open: Speak openly and honestly about your financial experiences including when you regretted buying something or felt you were scammed.
- Track credit card spending: If your teen has access to your card, establish a rule of ‘talking before spending’. Transparency can be a huge deterrent.
- Learn to smell a scam: Look at known scam sites with your children and help them learn to ‘read the signs’. Scamwatch.gov.au is a great resource.
- Be wary of secrecy: Scammers often try to isolate the victim, or coach them to hide transactions from others ‘who wouldn’t understand’. Teach your kids this is a sign that they may be scammers.
- Talk: The stronger your bond with them, the more likely they are to talk about decisions they are making and the less susceptible to scams they become.
(Source: financialbasics.org.au)
