Read the full article on KETV 7
Scammers target college students with fake scholarships and test prep schemes
Experts warn college students and their families to stay alert to scams involving fake scholarships, fraudulent loan payments and test prep schemes as the new semester begins
Digital News Video Producer
As students head back to campus for a new semester, experts are warning about scams targeting college students and their families, which have already cost victims hundreds or even thousands of dollars.
Students are especially vulnerable to scams because they are often new to making major financial decisions and are caught up in the excitement and stress of the school year, says Claire Rosenzweig, the president and CEO of the Better Business Bureau of Metro New York.
Advertisement
Imposter scams
Many scams targeting students are imposter schemes, like phishing emails or calls from scammers pretending to be the student’s bank, financial aid office or university.
“They’ll say, ‘You won a scholarship!’ Now, mind you, you may never have even applied for a scholarship, which would be a big red flag,” Rosenzweig said.
Anyone who asks for an upfront fee to claim a scholarship or grant should raise immediate concerns, Rosenzweig said.
Student loan scams
Scammers frequently target student loan borrowers as well, sometimes posing as the Department of Education.
“In one case, they contacted the Department of Education, and the department said, ‘Excuse me, but we have no payments whatsoever,'” Rosenzweig said. “So that person had been fooled into thinking that they were paying off their loan, but they weren’t. They were paying a scammer.”
Always be skeptical of companies promising lower loan payments or big grants.
Search the company online for signs of a scam or negative reviews and contact your school’s financial aid office for advice.
Test preparation scams
Cramming for a physics test? Scammers also exploit students’ exam stress.
“They’ll give you some reason why now you have to pay extra. If you say no, that’s when they start saying, ‘We’re going to report you to the college, and you’re going to get expelled,'” Rosenzweig said.
These test preparation scams often involve blackmail, with scammers threatening to report students to their colleges and accusing them of cheating.
The Better Business Bureau’s Scam Tracker shows victims have reported losing hundreds or even thousands of dollars to these kinds of schemes.
Scammers also target parents, claiming their child signed up for test prep services.
“A parent might get a call from somebody saying they’re with a test prep organization, saying that your child has signed up for this, and they ask me to call you. And here’s the price. And parents sign up,” Rosenzweig said.
For legitimate tutoring services, experts recommend starting with university-recommended resources and checking reviews, including those at BBB.org.
Student credit card scams
College is a great time to build credit. But before applying for that new shiny credit card, make sure the offer is legitimate.
“They’re going to try to say they have a better rate for you as a first-time card owner, but they’re going to ask you for personal information,” Rosenzweig said. “You never want to give someone you don’t know your personal information or money upfront.”
Verify the offer on the card issuer’s official website, then regularly check your credit report for unusual activity.
Apartment rental scams
Students apartment hunting near campus should watch for deals that seem too good to be true, such as low rent and luxury perks.
Scammers may ask for a credit check before showing the place, then conveniently vanish after taking your personal information and payment.
Always be cautious of unusually low prices and never pay or sign before seeing the property in person. Research the listing and contact information online. If the same property appears in another city, it is likely a scam.
If you need a credit check, always use reputable sources recommended by the Consumer Financial Protection Bureau.
All of these scams have something in common: they create a sense of urgency. So let that be your cue to slow down and make sure you verify who you’re dealing with before you send any money or sign any papers.
Stay Connected With the National Consumer Unit
Get clear, actionable consumer reporting delivered across platforms.
Follow National Consumer Correspondent Allie Jasinski for real-time updates on Instagram, TikTok and YouTube.
Have a question you’d like us to investigate? Email us at askallie@hearst.com
Subscribe to our twice-weekly consumer newsletter for in-depth explanations and practical guidance.
