Back-to-School Scams
Back-to-school season means a flurry of shopping — and scams. As you get ready for school, look out for these scams targeting college students and parents of private school students who tend to peak before the school year. Make sure you do not fall victim to these back-to-school scams.
The tuition fee scam
How it plays out: A college student, or the parent of a private school student, gets a phone call from a caller introducing themself as an administrator at their school or their child’s school. The caller claims the student or parent owes tuition fees and can not return to school unless the fees are paid. The caller provides the victim with information for wiring money or dropping off cash at a private address. Once the payment is sent, you will never see it again.
Protect yourself: Most schools will not insist on immediate payment or payment through a wire transfer. If you receive a call like this, ask the caller detailed questions about the school, position, and the money owed. If it’s a scam, the caller will not be able to answer well. You can also insist on calling the school directly to make the payment.
The student tax scam
How it plays out: Someone allegedly representing the IRS calls a college student at a public university claiming they neglected to pay their student tax. The caller explains that failure to pay can result in disqualification from class and possible imprisonment. They also insist on immediate payment by prepaid gift card or wire transfer.
Protect yourself: You can spot this scam by remembering that the IRS will always contact people by mail. Also, the IRS won’t insist on being paid through a gift card or wire transfer.
The scholarship scam
How it plays out: A scammer reaches out to a college student telling them they’ve been guaranteed approval for a scholarship but must pay a fee to receive it. Unfortunately, the award is bogus.
Protect yourself: Student scholarships don’t charge for eligibility. Also, no company will guarantee approval for a scholarship; there is always a vetting process of some kind before eligibility is determined.
Fraudsters and scammers will take advantage of you in any way that they can. Do not let someone trick you into falling for any of these back-to-school scams. Make sure you share with your family and friends to keep them safe and protected. Find out what other scams are lurking out there on our MoneySmart Tips blog.
