Protecting Your Finances: Fraud Prevention Tips for Teens

Posted on May 15, 2025 by The Money Mill

Posted in Fraud & Identity Theft Young Adults

It’s exciting to be in charge of your own money, but that independence comes with some important responsibilities. One of the most significant is learning how to protect yourself from fraud. Scammers love to target young people who haven’t learned yet how to recognize potential threats to their money.

Fraud is more than an inconvenience — losing some or all of your hard-earned savings can also affect your financial future. But it’s not all bad news! Savvy financial institutions like Jeanne D’Arc Credit Union now offer accounts designed specifically for teens with features like secure online and mobile banking, account alerts and monitoring, and full deposit insurance.

Keep reading to learn about common types of financial scams, how to spot them, and smart ways to safeguard your money. We’ll also discover how Jeanne D’Arc’s StartStrong accounts provide teens with extra protection, and what steps to take if you ever suspect fraud.

Get Scam Smart: How to Protect Your Money

Today’s highly connected financial world offers plenty of convenience when it comes to managing money, but it also makes it easier for criminals to target online accounts or even steal identities.

Preventing fraud both online and in person is simpler than you might think. It starts with recognizing the signs of fraud and taking proactive steps to protect your account. Let’s start by understanding some of the most common scams.

Common Types of Financial Fraud

Recognizing common types of financial scams can help you avoid them. Here are five fraudster favorites to watch for:

Phishing

Phishing includes fake emails, texts, or social media posts that claim to be from companies you trust. They’ll typically ask you to click a link or share personal information like passwords or bank details, often to avoid losing money or to earn a reward. If a message seems unnecessarily urgent or sounds too good to be true, it’s probably a scam.

Card Skimming

Scammers can “skim” your debit card information with devices attached to ATMs or payment terminals. These devices steal the data on your card when you swipe it. Always check for what looks like extra equipment attached to card readers before using them, and use tap-to-pay for added security.

Social Media Scams

Fraudsters pose as popular influencers or brands on social media, or even as helpful members of online groups you might belong to. Typically they promise money or giveaways to tempt you into sharing personal details or sending money. Always check that a post links to a legitimate website before sharing any information.

Fake Online Shopping Sites

Scammers set up entire websites or social media stores that look a lot like legitimate retailers but don’t deliver the goods you think you’re buying. Always shop on trusted, verified platforms and double-check URLs before entering your payment information.

Payment App Scams

Peer-to-peer payment apps like CashApp, Venmo, Zelle, and others have become very popular, especially with teens, but are often used by fraudsters to target young people.

Be cautious of messages claiming to be from payment systems, especially if they request personal details for technical support, claim money was “accidentally” sent to your account, or promise a prize.

Identity Theft

If fraudsters can get access to your personal information — like your Social Security number or account details — they might be able to open credit card accounts or take out loans in your name. Safeguard your account numbers and other details and avoid sharing your personal information unless absolutely necessary.

As a rule of thumb, trust your instincts, if something feels off or seems too easy, think twice before acting.

How to Safeguard Your Money and Information

Fraud is scary, but protecting your money and personal information starts with just a few smart habits. Anything you can do to make it harder or more time-consuming for scammers to target your accounts will go a long way in protecting you.

Here are six practical steps to safeguard your finances:

1. Choose strong passwords

Use strong, unique passwords for all your accounts. Choose a mix of letters, numbers, and symbols, and avoid reusing passwords across sites. For convenience, use a password manager to keep track of them.

2. Think Before You Click

Avoid oversharing personal information on social media, and don’t share sensitive details—like your full name, address, or account numbers—with people or websites you don’t trust.

3. Enable Two-Factor Authentication

Add an extra layer of security to all your accounts by turning on two-factor authentication. This requires an extra step, like entering a code sent to your phone, when logging in, making it much harder to crack your accounts.

4. Monitor Your Accounts

Be sure to check your accounts frequently for transactions you don’t recognize. If you spot anything suspicious, report it immediately. Using online banking to set text alerts when your account is credited, debited, or falls below a certain level allows you to catch issues early.

5. Keep Your Personal Devices Secure

Lock your phone, tablet, or laptop with strong passwords, PINs, or biometrics like fingerprint or facial recognition. Keep your software and apps updated to protect against the latest viruses and other security threats.

6. Use Secure Wi-Fi

Try not to log into banking apps or share personal information on public Wi-Fi networks. If you need to connect securely over a network you don’t trust, learn how to use a virtual private network (VPN) for added protection.

By making security part of your daily routine, you’ll build strong habits that help to keep scammers at bay.

How StartStrong Accounts Help Protect You from Fraud

When it comes to protecting your money, the tools you choose to use matter. Jeanne D’Arc’s StartStrong accounts offer high-level security features designed to keep you safe. Here’s how they work:

Secure Online and Mobile Banking: Your StartStrong accounts feature robust online and mobile banking tools that use advanced encryption to protect your data. Your personal and financial information stays secure while you manage your money.
Account Alerts: Set up real-time alerts for account activity. You can opt to be notified of every transaction, so you can spot and address any unauthorized charges immediately.
Fraud Monitoring: Our system also monitors your account for unusual activity and flags suspicious transactions such as large unexpected withdrawals. This helps identify potential fraud before it escalates into a bigger problem.
Deposit Insurance: Money in your StartStrong account is federally insured against loss up to $250,000 by the National Credit Union Administration (NCUA) and any in excess is insured by the Massachusetts Credit Union Share Insurance Company (MSIC), so you can manage your finances with confidence.

With our StartStrong accounts, Jeanne D’Arc Credit Union not only offers a convenient place to keep your money. We also provide the tools you need to stay one step ahead of scammers.

What to Do If You Suspect Fraud

If you notice unusual or unrecognized activity on your account, it’s important to take action right away. Acting fast can help minimize your potential losses and protect your savings. Here are seven steps to take if you think you’ve been targeted by fraud:

Tell an Adult: Get a parent or guardian to help you investigate whether your accounts have been breached.
Freeze your account: Freeze your debit card through CardManager or contact your credit union immediately to freeze your account. This prevents further unauthorized transactions from taking place.
Review recent account activity: Look through recent transactions to identify suspicious charges. Make a list of anything that seems out of place.
Report potential fraud: Notify your financial institution of the suspicious activity. They will want to investigate your claims.
Change your passwords: Create new passwords for your online banking account, email account, and any other accounts that have to do with your finances. Ensure the new passwords are strong and unique to prevent future breaches.
Freeze credit report: Contact credit bureaus to freeze your credit report. This is a smart move anyway to prevent someone from taking advantage of your credit before you turn 18. If you are concerned that your identity may have been stolen you can try requesting a free report in your name from annualcreditreport.com. If a report is found it is likely your identity has been illegally used to open credit accounts.
Report the fraud to authorities: File a complaint with the Federal Trade Commission at IdentityTheft.gov. Depending on the situation, you may also need to contact local law enforcement.

By acting quickly and using these tools, you can help minimize the effect on your finances and get your account back on track.

StartStrong Means Start Safely at Jeanne D’Arc

At Jeanne D’Arc, we take safety seriously, especially when it comes to our younger members. Our StartStrong Savings, Checking, and Goal accounts are engineered to help teens learn about managing their finances in a safe and supportive environment with all the tools they need to protect their accounts and their identity.

Opening a StartStrong account is not just a smart move when it comes to protecting yourself and your money. Our savings accounts let you: