Your teenager knows the internet. They can navigate social media, send money to friends in seconds, and spot a bad meme from a kilometre away. But when it comes to recognizing online scams — especially ones involving money — that digital fluency can work against them.
Online fraud targeting young people is growing fast. In Canada, the Canadian Anti-Fraud Centre's (CAFC) 2024 Annual Statistical Report recorded 108,878 fraud reports, involving at least 35,587 confirmed victims and $643.7 million in total reported losses — and young people are increasingly among those affected. These numbers reflect reported cases alone — the CAFC estimates that only 5% to 10% of fraud incidents are actually reported.
The good news is that talking openly with your teen about money scams can make a real difference. This article breaks down the most common scams targeting teenagers, offers a practical checklist they can use before sending money online, and shares strategies for having these conversations without turning them into lectures.
Why teens are prime targets for online money scams
Teenagers spend a significant amount of time online, and scammers know it. But it is not screen time alone that makes teens vulnerable — it is a combination of factors that create the conditions for fraud.
Digital confidence without financial experience
Most teens have grown up swiping, tapping, and transacting online. That familiarity can breed overconfidence. They may assume they can spot a scam because they understand technology, but financial fraud does not always look like an obvious phishing email. Scammers have evolved, and their tactics now exploit trust, social pressure, and emotional vulnerability — things that technology skills alone cannot defend against.
Social pressure and emotional manipulation
Teens are wired to care deeply about what their peers think. Scammers exploit this by creating urgency ("send the money now or you'll miss out"), mimicking friends or romantic interests, or using flattery to build trust before making a request. A message from someone who seems like a friend — or a potential love interest — can override the scepticism that might kick in with a stranger.
A gap in financial literacy
Many teenagers are managing money digitally for the first time. They may not fully understand how electronic transfers work, that sent money is often unrecoverable, or what a legitimate payment request looks like versus a fraudulent one. Without that foundational knowledge, scams can be harder to identify.
Common online scams that target teenagers
Scammers are creative, and they tailor their approaches to the platforms and habits of young people. Here are the most common types of fraud targeting teens today.
Fake e-transfers and payment requests
A teen receives a message — often through social media or a messaging app — asking them to send money for something that seems legitimate. It might be a friend in trouble, a seller on a marketplace, or a stranger offering a "deal." The money gets sent, and the other person disappears.
Some scams involve fake e-transfer notifications that look legitimate, tricking teens into clicking malicious links or sharing banking information. E-transfer fraud has become one of the most common forms of banking fraud reported in Canada, according to the Ombudsman for Banking Services and Investments (OBSI).
Gaming and in-app purchase scams
Online gaming communities are a common ground for fraud. Scammers offer rare in-game items, discounted currency packs, or account upgrades at prices that seem too good to be true — because they are. Teens pay through unofficial channels and receive nothing in return, or worse, hand over login credentials that give scammers access to their accounts and personal information.
Phishing and smishing
Phishing (fraudulent emails) and smishing (fraudulent text messages) are not new, but they have become more sophisticated. A teen might receive a text claiming their bank account has been compromised, or an email that looks like it is from a trusted service asking them to verify their identity. These messages often include links to convincing fake websites designed to harvest passwords, banking details, or personal information.
Job and gig scams
The promise of easy money is especially appealing to teenagers looking for their first job or a side hustle. Scammers post fake job listings on social media and job boards, offering high pay for minimal work. Once a teen "applies," they may be asked to pay for training materials, share their Social Insurance Number (SIN), or deposit a fraudulent cheque and send a portion of the funds back — a classic overpayment scam.
Money mule recruitment
This is one of the more insidious scams targeting young people. Criminals recruit teens — often through social media posts showing large amounts of cash — to move stolen money through their bank accounts. The teen may not realize they are participating in money laundering, which carries serious legal consequences.
Sextortion and blackmail
Sextortion involves someone threatening to share intimate images or information unless the victim pays money. This form of fraud is growing at an alarming rate among young people. This topic requires particular sensitivity when discussing with your teen — more on that below.
The "before you send money" gut check
One of the most practical things you can do is help your teen develop a habit of pausing before any online money transfer. Think of it as a mental checklist — a moment to slow down and ask a few questions before tapping "send."
Here is a simple framework you can share with your teen:
Do I know this person? Not from online interactions alone — have I met them, or can I verify who they are through someone I trust?
Why is this urgent? Scammers create pressure to act fast. If someone says you need to send money right now, that is a red flag.
Does this seem too good to be true? Deeply discounted items, guaranteed returns, or high-paying jobs with no experience required are warning signs.
Am I being asked to send money in an unusual way? Requests to pay through gift cards, cryptocurrency, or wire transfers to strangers should raise immediate concerns.
Can I verify this independently? Before sending money, check the request through a different channel. Call the friend who supposedly messaged you. Look up the company that emailed you. Search for the "job" online.
Would I be comfortable telling a parent or trusted adult about this transaction? If the answer is no, that is worth paying attention to.
Encourage your teen to treat this checklist like a reflex — the same way they might check a review before downloading an app. The goal is not to make them paranoid, but to build a habit of healthy scepticism.
How to talk to your teen about online fraud
Having a conversation about online scams does not have to be awkward or adversarial. In fact, the way you approach it can make the difference between a teen who shuts down and one who actually listens.
Start from curiosity, not control
Instead of leading with warnings, try asking questions. "Have you ever seen a sketchy message online?" or "Do any of your friends ever get weird DMs asking for money?" Starting with their experience, rather than your fears, makes the conversation feel collaborative instead of one-sided.
Normalize the topic
Scams are not a reflection of intelligence. Smart, tech-savvy people fall for them every day. When you frame scams as something that happens to everyone — not something reserved for people who are careless or naive — your teen is more likely to come to you if something goes wrong.
Share examples without lecturing
Walk through a real-world scenario together. Show them what a phishing text looks like, or talk through how a fake job posting might work. Concrete examples are more memorable than abstract warnings, and they give your teen a framework for recognizing similar patterns on their own.
Make it an ongoing conversation
A single talk is not enough. Scam tactics evolve constantly, and new platforms bring new risks. Check in periodically — not as an interrogation, but as a natural part of talking about their online life. "Seen anything weird online lately?" can be a low-pressure way to keep the dialogue going.
Lead with empathy
If your teen has already encountered a scam — or fallen for one — resist the urge to say "I told you so." Shame makes people less likely to ask for help. Instead, focus on what can be done now, and make it clear that your support is unconditional.
What to do if your teen has been scammed
Discovering that your teen has been scammed can be stressful for everyone involved. Here is what to do, step by step.
Take immediate action
If money was sent, contact the financial institution immediately to see if the transaction can be reversed or frozen
Change passwords on any accounts that may have been compromised
If personal information was shared (such as a SIN, address, or banking details), contact the relevant institutions to flag potential identity theft
Report the scam
In Canada, report fraud to the CAFC online or by calling 1-888-495-8501. Reporting helps law enforcement track patterns and may prevent others from being victimized. If the scam involved sextortion or exploitation of a minor, report it to Cybertip.ca as well.
Support your teen emotionally
Being scammed can bring up feelings of shame, embarrassment, and anger. Your teen may feel foolish — but they should not. Let them know that what happened is not their fault, that scammers are professionals who manipulate people for a living, and that coming forward was the right thing to do.
If your teen is experiencing distress — particularly in cases involving sextortion or blackmail — connect them with professional support. Kids Help Phone (1-800-668-6868) offers free, confidential counselling for young people across Canada.
Teaching teens to protect themselves long-term
Beyond individual conversations, there are ongoing habits and skills that can help your teen stay safer online as they grow into independent financial adults.
Review privacy settings together
Go through the privacy settings on your teen's social media accounts and messaging apps. Limit who can contact them, see their posts, or find their profiles through search. This is not about surveillance — it is about reducing the surface area for scammers to reach them.
Build scepticism as a skill
Encourage your teen to question unsolicited messages, verify identities before sending money, and research offers that seem too good to be true. Scepticism is not cynicism — it is a practical life skill that protects against fraud and manipulation.
Create a safe space for ongoing check-ins
Make it clear that your teen can come to you with questions or concerns about online interactions without fear of punishment. The more comfortable they feel talking about what they encounter online, the more likely they are to flag something before it becomes a problem.
Stay informed together
Follow resources like the CAFC and the Canadian Centre for Cyber Security for the latest scam alerts and prevention tips. Learning about new scam tactics together can be a way to bond while building awareness.
Online scams targeting teenagers are not going away — they are becoming more sophisticated, more targeted, and more emotionally manipulative. But a teen who knows what to look for, feels comfortable asking questions, and has a trusted adult to turn to is far better equipped to protect themselves. The conversation does not have to be perfect. It simply has to happen.