Classes are back in session, and soon the cold temperatures will give way to spring — and exams.
For college students, it’s a season of energy, learning and growth.
Unfortunately, it’s also a time when students are prime targets for scammers. Student-focused fraud is big business, fueled by new independence, fast-paced schedules and tempting quick-money schemes.
“We want college students to enjoy the experience,” said Kimberly Reece, Customer Advocacy Manager for the Financial Crimes Unit at Regions Bank. “But be wary that there are people looking to take advantage of you.”
10 Tips to Avoid Student Scams
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- Protect Your Privacy
Be mindful of what you share on social media. Never post your address, dorm room number, license plate or phone number. Always safeguard your financial information.
- Campus Safety Comes First
Walk in groups, avoid unsecured Wi-Fi, and stick to well-lit, well-traveled routes when moving around campus.
- Be Wary of Unsolicited Messages
The forms you fill out during the semester can give criminals access to pieces of your personal information. Scammers often use this to send urgent-sounding texts or calls. If you don’t recognize the number, don’t respond. If you do, go directly to the official website associated with the message before taking action.
- Beware of Identity Theft
A new semester creates opportunities for criminals to slip in fraudulent credit card applications, fake meal-ticket offers or spoofed websites requesting personal information. A new trend is to use info to create “ghost students” to acquire loans illegally.
- Avoid Becoming a Money Mule
Criminals often recruit students to help launder illicit funds—typically through unsolicited messages offering “quick cash.” If someone you don’t know asks for help moving money, it’s a scam.
- Watch for Fraudulent FAFSA Sites
Some scammers pose as third parties offering help with federal financial aid. Remember, you can work directly with the U.S. Department of Education through its official website.
- Beware of Fake Student Housing Listings
Rental scams frequently target out-of-state students who may not know local housing options. Be cautious of unusually low prices or landlords who won’t show a property in person.
- Don’t Fall for Fraudulent Scholarship Offers
If you receive an unexpected scholarship offer, check with your school’s financial aid office before doing anything else.
- Don’t Trust ‘Make-Money-Fast’ Opportunities
Scammers bombard students with quick-cash offers, fake jobs, bogus scholarships or too-good-to-be-true investment opportunities. If it sounds easy or risk-free, it’s probably a scam.
- Above All… STOP. CALL. CONFIRM.
Take a moment to do your homework before reacting. A brief pause can save you from long-term trouble.
Regions customers who need help can call 1-800-REGIONS.
“Half the battle is being aware of what’s out there,” said Jeff Taylor, head of Commercial Fraud Forensics at Regions Bank. “Learn to spot student scams and share the tips with friends to help keep them safe.”
A Growing Trend: ‘Ghost Students’
A troubling new scam that may impact students even after graduation is the rise of “ghost students.” This scheme has already cost colleges across the U.S. millions of dollars.
Here’s how ghost student scams work:
Criminals create fake or synthetic identities and submit college applications in large volumes. Once accepted and enrolled, they apply for financial aid under those false identities.
While current students may not feel the effects right away, the long-term concern is significant. Loans taken out under synthetic IDs can later appear under the names of real, unsuspecting individuals who were somehow tied to the stolen information.
How do you protect yourself from ghost student scams?
Law enforcement agencies are actively combating the issue of ghost students, but students should remain vigilant. A good precaution is to check your credit report regularly and look for any loans or accounts opened in your name without your knowledge.
More updates on fighting ghost student scams will be shared in the months ahead.
Additional Resources from Regions.com
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The information presented is general in nature and should not be considered, legal, accounting or tax advice. Regions reminds its customers that they should be vigilant about fraud and security and that they are responsible for taking action to protect their computer systems. Fraud prevention requires a continuous review of your policies and practices, as the threat evolves daily. There is no guarantee that all fraudulent transactions will be prevented or that related financial losses will not occur. Visit regions.com/STOPFRAUD or speak with your Banker for further information on how you can help prevent fraud.