"Financial Planning ... it's not always about money."

It’s Back-To-School Season for Scammers, too—What to Watch Out for and How to Protect Yourself

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David M. Brenner, ChFC®, CLU®

D. M. Brenner, Inc.
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Paying for college can be stressful, but receiving calls about unpaid tuition? That sounds super stressful—and it's probably a scam.


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School is starting again across the country, as are related frauds.

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The Federal Trade Commission (FTC) has issued an alert about scammers calling students and parents and pretending to be from the school's financial aid or bursar's office. The caller may claim to be someone who supposedly works at your or your child's school, saying you haven't paid the bill—and threatening to drop classes unless you send money right away.

The caller might call and say financial aid fell through and that you or your child can't start classes until you pay the entire balance right away—or that school transcripts are on hold until you pay up.

Other Student-Focused Scams

In a related scheme, scammers call and pose as those with legitimate offers for scholarships, grants, and financial aid services. However, to take advantage of this "great offer," you are asked to provide personal information or pay upfront fees to secure the aid. Sometimes, you're asked to provide your bank account information so that grants or other assistance can be deposited immediately.

Related, some scammers may take advantage of those with student loans by making offers to pay down student loan debt or forgive existing loans altogether. In reality, scammers are just trying to solicit personal information to steal your identity or collect fees for "help" they do not plan on providing.

Also a back-to-school scam? Thieves set up fake websites to sell expensive textbooks at "great deals." Students are asked to pay upfront, but they never receive any books.

Concerts and other events are potential lures, too. Scammers using GroupMe or other apps will claim to have concert or sports tickets at a discount, but want to confirm student status before selling the tickets. The scammer will ask the student to send a picture their student ID as "proof" of student status, in addition to money for the (non-existent) tickets—now they have your money and a copy of your student ID card.

And yet another trick? Scammers pose as individuals or property managers renting or subletting a property. It's an easy lure for students and other newbie renters who can be persuaded to hand over money to view or apply to rent the property. Once the payment is received, the potential tenant realizes the property is unavailable.

In another variation, a scammer, acting as a potential roommate, will offer to pay rent or other fees upfront but claim that they can't cash a paycheck due to geography or other logistics. So, they offer to send the paycheck over and ask the student to return the extra amount once it's been deposited. For example, the scammer may send a paycheck for $5,000 to pay rental expenses of $3,000 and ask the student to return the overage ($2,000) using Venmo or Zelle. The catch? It's a bad check.

Giveaways

Don't think you would fall for these scams? The rental scam almost happened to me—I saw an ad on a legitimate rentals site, complete with a photo, and was familiar with the area. It turned out that the property was owner-occupied, and the scammer was attempting to collect "rents" associated with a home they had no interest in. What saved me? The cost—it felt way too cheap for the area. If an opportunity seems too good to be true, it almost always is.

Other giveaways?

  • Callers who demand that you act immediately. Even in a hot real estate market or during back-to-school season, you shouldn't be expected to make payments over the phone without getting more information. Similarly, no one can promise immediate and total loan forgiveness or cancellation or guaranteed scholarships over the phone—don't be afraid to take a pause. Similarly, callers who immediately ask for your bank or credit card information should not be believed.
  • Companies or websites that appear brand new, have slightly “off” names, or don’t provide complete contact information. Be wary of websites offering government services that don't offer contact information and carefully examine the email address, URL, and spelling used in any correspondence. Sometimes, scammers will change a letter or two—Sallie May instead of Sallie Mae—to trick you.
  • Callers accept limited forms of payment. Payees who only accept alternative payments such as crypto, wires, gift cards, or payment apps should be regarded with suspicion—scammers may ask you to pay by unconventional means so they can launder money quickly. While individuals might ask for specific kinds of payment, government agencies (like the IRS) or schools will not request payment over the phone and will not require you to only pay in a certain method.
  • Charging for information that’s otherwise available for free. You shouldn't have to pay to access your Free Application for Federal Student Aid (FAFSA) form or your tax transcript online on the IRS website. (You may pay a professional to help you with those services, but the feds don't charge a fee for this information.)
  • You receive communications with many typos or poor English. Look for indications that scammers may be trying to shoehorn official terms into a fake document, like referring to the "Bureau of Internal Revenue"—that's not the IRS. Be aware, however, that with artificial intelligence, it's easier than ever for scammers (even those based abroad) to clean up their grammar and accurately mimic official titles and communications.

Protect Yourself

Despite the proliferation of fraud, there are steps you can take to protect yourself. Those include:

  • Don't trust your caller ID. Scammers fake caller ID numbers, even "spoofing" the first six digits to make it look like the call came from on campus. Just this week, I got a call purporting to be from a Philadelphia university, but when I answered, they were selling credit-related services. If you believe it's a legitimate call, say you'll call them back—then call a trusted, direct number.
  • Check it out. Most schools will send a paper bill or post a balance on a student portal—check any tuition balance there first. If you believe that you might owe some money, call the school's financial aid office or billing office directly. They'll help you verify any outstanding balances or determine how to pay. Ditto for student loans—typically, you can check your loan status, including any forgiveness, directly online.
  • Don’t click on anything in an unsolicited email or text message. Scammers hope you will click on links. If you aren’t expecting a call, text, or email from a student loan provider or other service, don’t rely on the information in the email or text. Don’t click and never open an attachment from someone you don’t know. As with unsolicited calls, if you think it could be a legitimate offer, look up the source’s official information and reach out directly.
  • The more layers, the better. Set up two-factor (or multi-factor) authentication on any account that allows it, and never disable it.
  • Switch it up. If you think you've fallen for a scheme, quickly change passwords and notify your financial institutions, including your local bank. You may also want to freeze your credit—it's free, but you'll have to place a freeze with the three big consumer credit reporting agencies: Equifax, Experian, and TransUnion.
  • Report it. If you get a suspicious call or text, chances are, you're not the only one. Call local law enforcement, if appropriate. You should also report the fraud at ReportFraud.ftc.gov.

By Kelly Phillips Erb, Forbes Staff

© 2024 Forbes Media LLC. All Rights Reserved

This Forbes article was legally licensed through AdvisorStream.

David M. Brenner profile photo

David M. Brenner, ChFC®, CLU®

D. M. Brenner, Inc.
Phone : (858) 345-1001
Schedule a Meeting