Fraud Prevention and Phishing for Scholarship Scams: A Back-to-School Guide

As students gear up for the new school year in August, it’s an opportune time for fraudsters and scammers to take advantage of the busy and often stressful period. From financial fraud to phishing scams, students and their families need to be vigilant. This guide provides essential tips to help you stay safe and avoid falling victim to common back-to-school scams, particularly those involving scholarships.

Understanding Back-to-School Fraud

1. Fake Online Stores:
   1. What it is: Fraudsters set up fake websites that mimic legitimate online stores offering school supplies at unbeatable prices.
   2. How to avoid: Always verify the legitimacy of a website before making a purchase. Look for reviews, contact information, and secure payment methods (HTTPS).
2. Financial Aid and Scholarship Scams:
   1. What it is: Scammers promise guaranteed scholarships or financial aid in exchange for an upfront fee or personal information.
   2. How to avoid: Legitimate scholarships and financial aid opportunities never require payment. Use trusted sources like the official FAFSA website or your school’s financial aid office.
3. Identity Theft:
   1. What it is: Personal information is stolen and used to open credit accounts or take out loans in your name.
   2. How to avoid: Protect your personal information. Shred documents with sensitive information, use strong passwords, and monitor your credit report regularly.

Scholarship Phishing Scams

Phishing scams are a common method used by fraudsters to trick students into divulging personal information under the guise of offering scholarships. These scams can be highly convincing and sophisticated.

1. Recognizing Phishing Emails:
   1. Suspicious Sender Addresses: Check the sender’s email address carefully. Phishing emails often come from addresses that mimic legitimate ones but have subtle differences.
   2. Urgent or Threatening Language: Be wary of emails that create a sense of urgency or threaten negative consequences if you don’t act immediately.
   3. Too Good to Be True Offers: If the scholarship offer seems too generous or guarantees money without much effort, it’s likely a scam.
2. Red Flags to Watch For:
   1. Request for Personal Information: Legitimate scholarship providers will not ask for sensitive information like your Social Security number, bank account details, or passwords via email.
   2. Unsolicited Communication: Be cautious of scholarship offers that come out of the blue, especially if you didn’t apply for them.
   3. Links and Attachments: Avoid clicking on links or downloading attachments from unknown or suspicious emails. These can lead to phishing websites or malware.
3. Protecting Yourself:
   1. Verify the Source: Research the scholarship provider independently. Look for official websites and contact information to confirm the legitimacy of the offer.
   2. Use Official Channels: Apply for scholarships through official websites and trusted platforms. Avoid third-party websites that promise to find scholarships for you in exchange for a fee.
   3. Report Suspicious Activity: If you receive a suspicious email, report it to your school’s IT department, the Federal Trade Commission (FTC), or the Anti-Phishing Working Group.

As you prepare for the new school year, make fraud prevention a priority. By staying vigilant and informed, you can protect yourself and your family from falling victim to back-to-school scams and scholarship phishing attempts. Remember, the best defense against fraud is to stay informed and verify all information before acting on it.