As financial crime becomes increasingly sophisticated and criminals target younger victims, protecting our children from financial fraud has never been more critical. At our bank, we see firsthand how these schemes affect families, and we’re committed to helping parents safeguard their children’s financial security—both now and in the future.

The Growing Threat to Our Children

Financial fraud targeting children has exploded in recent years. Criminals specifically target minors because:

• Children’s identities are clean slates with no existing credit history
• Fraud often goes undetected for years until the child applies for credit
• Parents may not monitor their children’s credit as closely as their own
• Children are more trusting and less aware of scam tactics
• Social media provides easy access to personal information

The Federal Trade Commission reports that children are now 35 times more likely than adults to be victims of identity theft. This isn’t just a number—these are our community’s children whose financial futures are being stolen before they even begin.

Common Fraud Schemes Targeting Children

Identity Theft for Credit Applications Criminals use stolen Social Security numbers to open credit cards, take out loans, or even file fraudulent tax returns. Since children don’t typically check their credit, this fraud can continue for years undetected.

Social Media Scams Fraudsters pose as friends, influencers, or romantic interests to manipulate children into sharing personal information or sending money through apps like Venmo, CashApp, or PayPal.

Gaming and App Fraud Children are tricked into making unauthorized purchases in games or apps, or criminals gain access to accounts linked to parents’ payment methods.

Scholarship and Education Scams High school students receive fake scholarship offers or college financial aid opportunities that require upfront fees or personal information.

Employment Scams Teenagers looking for part-time work fall victim to fake job offers that require them to cash checks or transfer money, making them unknowing participants in money laundering schemes.

Red Flags Every Parent Should Know

Watch for these warning signs that your child may be targeted or victimized:

Financial Red Flags:

• Unexpected bills or collection notices addressed to your child
• Pre-approved credit card offers for your minor child
• Unknown accounts appearing on credit monitoring alerts
• Unexplained charges on your accounts or credit cards

Behavioral Changes:

• Secretiveness about online activities or new “friends”
• Sudden possession of money, gift cards, or expensive items
• Reluctance to discuss phone calls or messages they receive
• Anxiety about checking mail or answering the phone

Communication Red Flags:

• Receiving calls or mail about debts your child couldn’t have incurred
• Tax notices or documents related to employment your child never had
• Medical bills for services your child never received

Our Comprehensive Protection Strategy

Immediate Actions You Can Take

Monitor Your Child’s Credit

• Request free credit reports for your children annually from annualcreditreport.com
• Consider freezing your child’s credit with all three bureaus until they’re ready to apply for credit independently
• Set up credit monitoring alerts for any activity on their Social Security numbers

Secure Personal Information

• Keep Social Security cards, birth certificates, and other identity documents in a secure location
• Be cautious about sharing your child’s personal information, even with schools or activities
• Teach children never to share personal information online or over the phone

Educate and Communicate

• Have regular conversations about online safety and financial awareness
• Create an environment where your child feels comfortable reporting suspicious contact
• Establish rules about sharing personal information and making online purchases

Technology Safeguards

Monitor Digital Activity

• Regularly review your child’s social media accounts and friend lists
• Check app purchases and in-game transactions monthly
• Set up parental controls on devices and accounts
• Monitor text messages and emails for suspicious content

Secure Financial Apps

• Remove stored payment information from your child’s devices
• Use separate, limited-balance accounts for any legitimate child expenses
• Require approval for all digital purchases
• Regularly review all connected accounts and subscriptions

Building Financial Awareness

Age-Appropriate Education

• Teach younger children never to share “secret numbers” (SSN, account numbers)
• Help teenagers understand how credit works and why their information is valuable
• Explain common scam tactics and how to recognize them
• Practice scenarios where children learn to say “I need to ask my parents first”

Create Safe Communication

• Establish a family policy that all financial decisions must be discussed with parents
• Create code words your child can use if they feel pressured or unsafe
• Encourage questions about any financial communication they receive

If Your Child Becomes a Victim

Immediate Steps:

1. Contact our fraud department immediately to report the incident
2. File a police report to create an official record
3. Contact the Federal Trade Commission at IdentityTheft.gov
4. Place fraud alerts on your child’s credit reports
5. Document everything with dates, times, and contact information

Long-term Recovery:

• Work with our fraud specialists to dispute fraudulent accounts
• Monitor your child’s credit closely for several years
• Consider identity theft insurance for ongoing protection
• Provide emotional support—being a fraud victim can be traumatic

Our Bank’s Commitment to Protection

We’ve implemented several programs specifically designed to protect our youngest customers:

Enhanced Monitoring: Our fraud detection systems include special algorithms for unusual activity on accounts linked to minors.

Educational Programs: We offer regular workshops for parents and children about financial safety and fraud prevention.

Rapid Response: Our fraud department prioritizes cases involving minors and works quickly to minimize damage.

Family Support: We provide dedicated resources to help families navigate the recovery process when fraud occurs.

Building Long-term Financial Security

Protecting your children from fraud isn’t just about preventing immediate damage—it’s about preserving their financial futures. A clean credit history is one of the most valuable gifts you can give your child as they enter adulthood.

Start Early: Begin teaching financial literacy and safety as soon as children can understand basic concepts about money and privacy.

Stay Involved: Maintain active oversight of your child’s financial footprint until they’re mature enough to handle it independently.

Plan Ahead: Consider opening monitored savings accounts and eventually supervised checking accounts to teach responsible financial habits.

Taking Action Today

Financial fraud prevention starts with awareness and action. We encourage every parent to:

1. Check your child’s credit report this month
2. Have a conversation about online safety and financial privacy
3. Review and secure any accounts or apps your child uses
4. Contact us to discuss additional protection services available for your family

Remember, criminals count on parents being busy and children being trusting. By staying informed, remaining vigilant, and maintaining open communication, we can protect our children from financial predators and help them build secure financial futures.

Partner With Us

Your child’s financial safety is our priority. Contact our customer service team to discuss credit monitoring options, account security features, and educational resources available to your family. Together, we can keep our children safe and set them up for financial success.

Fraud Hotline: contact@luminbank.com
Online Resources: www.luminbank.com
Visit any branch for personalized assistance

Protecting your family’s financial future is what community banking is all about. We’re here to help every step of the way.