During this time of the year, college students are having to spend money on tuition payments and school supplies as they begin a new semester. Scammers are taking this opportunity to try to steal some of that money through various schemes and scams.
According to BBB’s most recent Scam Tracker Risk Report, adults ages 18-24 reported the highest median losses - $150 - and many of the scams took place online.
Whether you’re a student starting school away from home or have young students who may be vulnerable to such scams, BBB recommends watching out for these financial scams before heading into the new semester.
Fake credit cards. Offers to apply for a first credit card are tempting to many students. Not only could this create credit problems down the road due to unchecked spending, but some deals could 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 not to jump on a convenient apartment so close to campus, especially if it advertises affordable rent. It’s also 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 Craigslist 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. The official government website to do this for free is annualcreditreport.com.
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.
Online shopping scams. Online purchase scams were the #1 culprit for scams in 2020, attacking 18-25 year olds especially through social media platforms and apps.
