Children as young as four will receive cyber safety training from federal police and educators because of fears some are producing sexually explicit material.
Last year the Australian Federal Police (AFP) received more than 10,000 reports of child exploitation material, arresting 91 alleged offenders.
AFP National Coordinator for Exploited Children, Jayne Crossling, says keeping kids safe on the web has never been harder.
"Children are being approached through games that are age appropriate but perhaps parents don't realise have a chat functionality that online sexual predators can actually approach them and groom them to do certain things."
Research by the e-Safety Commission shows nearly 50 per cent of kids reported sharing photos of their face online.
While about a quarter said they had shared their last name or real age.
Worryingly, six per cent went on to share their phone number or address online.
And there's another disturbing trend being monitored by the e-Safety Commission's cyber report team. Julie Inman Grant is the eSafety Commissioner.
"They're literally being flooded by images of kids as young as four to five in various states of undress."
To tackle this, the federal government is expanding the existing Think-U-Know cyber safety program to cover school children as young as four.
The training will include information about the dangers of self-produced sexually explicit material; the grooming of children through online apps and games; and the importance of adult supervision.
The Think u know program will be delivered by special police and cyber safety trainers nationally.
It also covers cyber bullying, with complaints last year skyrocketing by 63 per cent.
