Students across the country are spreading their wings at college – many leaving home for the first time. But with all of the activities and excitement, it’s easy for college kids to let their guards down.
That’s exactly what scammers and cybercriminals are expecting, who are targeting college students and tricking them into handing over their hard-earned money and personal information. If you are a college student, here are seven scams to study-up on so you don’t become a victim of a financial scam.
1. Employment Scams
With the soaring costs of college – and everything else – you may need a job. Scammers know college students can be desperate to earn a few extra bucks, so they target you with employment scams. These scams involve fake job postings on social media or legitimate job websites. They lure you in with the ability to make easy money from home with little time or effort required – think mystery shopper, package re-shipper, or high-paying data entry jobs.
But if it sounds too good to be true, it probably is. Research the company before accepting a job offer. Never send money for training or materials – legitimate companies typically provide that at no cost.
If your new supervisor asks you to deposit a check in your personal bank account and send them back a portion, don’t do it! That is a huge red flag. Their check will bounce, and you will be out that money.
Other red flags include getting a job offer with no interview or being required to give personal information such as your social security number or bank account number before getting a job offer.
2. Online Shopping Scam
You’re in college and you need stuff. Before clicking “buy now,” make sure you are shopping on a legitimate website. Scammers are good at setting up fake websites and social media ads that offer great deals. Once you are through the checkout process, they have your money – and you may never see what you bought. Online shopping scammers also steal your information, including the credit card data you entered during checkout.
Remember, if it sounds too good to be true, it probably is. Make sure you are shopping from a legitimate website. Check the Better Business Bureau for reviews if you are shopping on a new site. Avoid using your debit card when shopping online as the money comes right out of your bank account and it could take some time to get it back through a fraud claim – if you ever get it back.
3. Investment Scams
The lure of easy money is sometimes too hard to ignore – and scammers know that! Scammers turn to college students with fake investment opportunities that offer guaranteed returns with huge financial gains. Many of these scams involve cryptocurrency. These scams use fake websites or apps to promote the investment. Once you invest, your money disappears.
Always do your research before investing in anything, especially when it involves cryptocurrency. Be wary of claims of large returns – this is a huge red flag, and you should avoid that “opportunity.”
4. Debt Consolidation or Credit Relief Scams
It’s easy to get into credit card trouble in college. Debt consolidation may seem like a good option if you have high balances on multiple cards. But beware of scammers, who target college students desperate to erase their high-interest credit card debt. These scammers make false claims that they can negotiate lower payments or settle debts all together – often at a fee. These scams could end up getting students into more debt.
Be sure to research any company before you hand over any fees. Check for reviews and complaints on trusted sources, like the Better Business Bureau. Be wary of claims that offer unrealistic promises. Contact your lender if you are having trouble making monthly payments to work out a legitimate arrangement for getting out of debt.
5. Tech Support Scams
You may be working on a paper or doing your homework when a scary pop-up ad indicates there is something wrong with your system, and you need to call tech support immediately. These ads could also claim that you are a victim of fraud – but it’s these ads that are fraudulent! Once you call the “tech support” they can take control of your device and steal your personal information.
If you are truly experiencing issues with your device, many colleges have a tech support team to help. You can also call your device’s manufacturer or use a legitimate tech support service, such as The Geek Squad.
6. Impersonation Scams
Impersonation scams are a type of phishing scam where the fraudster impersonates a legitimate business or someone you know. They may email you unexpectedly and say there is a problem with your accounts and convince you to disclose personal information. If the scammers are impersonating friends or loved ones, they may claim that they are in trouble and need you to send them money – fast.
Be wary of any unexpected emails from businesses, friends, or co-workers. If in doubt, always contact them through a trusted source, like typing in the business’s legitimate URL or calling them on a trusted number.
7. Student Loan Scam
These scams target people who carry student loan balances. Scammers may claim that they can reduce your interest or balance – or erase the debt entirely. Typically, scammers will ask for an up-front fee for their services. They may also ask for credit card or bank account information.
With these scams, they may tell you to make your payments to them directly, and they will pay your student loan servicer. Unfortunately, they never do, and you will end up deeper in debt
If you are having trouble paying for your student loans, you should contact your loan servicer directly to work out an arrangement. They won’t charge a fee for this.
Also know that the Department of Education will never ask you for your studentaid.gov username and password.
Grow, Learn, and Have Fun in College, But Always Stay Vigilant!
The best defense against being a victim of a scam is a good offense and vigilance.
- Protect your accounts with strong passwords
- Don’t use the same password for all of your accounts
- Be wary of opening attachments or clicking on links from unknown sources
- Before clicking on any ads or links, verify they are taking you to a legitimate website by hovering over the link and closely looking at the URL. Watch for misspellings or other errors that could indicate the link is taking you to a fake website
- Never give your personal information, including account numbers, passwords, and PINs, to someone who contacts you claiming they are with an organization you know, no matter how urgent or scary they make the situation sound. Verify that the organization is legitimate by contacting them through a trusted source
And always remember – if it sounds too good to be true, it probably is!
Learn more about other fraud and scams on the Consumer Financial Protection Bureau’s website.