6 scams for college students to avoid as the school year nears

During this time of year, college students are beginning to spend money on tuition payments and school supplies as they begin a new semester. However, the Better Business Bureau (BBB) says scammers are taking this opportunity to attempt to steal some of that money through various schemes and scams.

According to BBB’s scam tracker risk report, adults ages 18-24 reported the highest median losses ($150) and many of the scams took place online.

While many colleges are considering their COVID-19 policies for school years, scammers will still take advantage of the situation using tactics that have worked in the past. One of the tactics to get students’ personal information is a phishing email that claims to be from the school’s "financial department." The email claims to have information about an economic stimulus check or may ask for personal identification to verify that the student has received a COVID-19 vaccination. Or, if the student hasn’t received one yet, they may offer locations on where to get one.

Messages via text or email may appear to instruct the student to click on a link provided in the email and log in with a student username and password. By doing so, the BBB says it could provide the username, password or other personal information to scammers, while possibly downloading malware onto the device used.

Whether you are a student starting school away from home or have young students who may be vulnerable to such scams, the BBB recommends watching out for these financial scams before heading into the new semester:

• Fake credit cards – Offers to apply for the first credit card are tempting to many students. Not only could this create credit problems down the road due to unchecked spending, but some details could also be phony offers designed to get access to personal information. Research the offers from the credit card flyers as well as the banking institutions before applying.
• Too good to be true apartments – It’s hard to not jump on a convenient apartment so close to campus, especially if it advertises affordable rent. It’s tempting to hand over credit card information online to lock in a great spot, but it’s always worth seeing the apartment in person prior to a money transfer. This also applies to Craiglist ads of other students looking for roommates.
• Safe credit reports – It’s a good idea to start practicing some healthy money habits as early as the age of 18. One such habit is regularly checking your credit report for unusual activity and possible ID fraud. Check the official government website here.
• Scholarship and grant scams – Be wary of phone calls from companies guaranteeing they can help reduce loan payments or offer a hefty grant. Searching the company’s name online could bring up scam alerts or negative reviews from other consumers. Read reviews and complaints about the company at BBB.org and contact the school’s financial aid office for advice and help regarding financing your education. Scholarship scams can affect college students even after graduation.
• Online shopping scams – online purchase scams were the biggest culprit for scams in 2020, targeting 18-25 year-olds through social media platforms and apps.
• Awareness of current scams – As tech-savvy as current college students can be, a surprising number of scams reported to BBB’s ScamTracker are from students who learned their lesson too late.