5 Financial Scams that Target College Students

No one woke up expecting to be scammed today. But according to Pew Research Center, 79% of Americans report receiving some form of scam communication daily so it’s a realistic possibility. Even professors have been duped by scams. Scammers are always trying to be one step ahead so scams can change quickly.  

These best practices continue to serve as top safeguards:  

• Never share private information or passwords.
• If something sounds too good to be true, it probably is.
• High urgency should create high suspicion.

Learn about the five most common scams targeted at college students and how you can protect yourself.  

Scholarship/Financial Aid Scams

You’ve won a scholarship! But you don’t remember applying. You’d be crazy to turn down free money. Right?!

Scholarship and financial aid scams may involve: 

• Scammers calling to award a scholarship that doesn’t actually exist
• Fake scholarship websites set up to collect email addresses or other details for future scams
• Financial aid services that charge well over $1,000 for actions the student or their family can complete for free

Experts recommend every student fill out the Free Application for Federal Student Aid (FAFSA), regardless of income status, to find legitimate scholarship and financial aid options available to you.  

You can also research options on the Federal Student Aid website provided by the Office of the U.S. Department of Education.  

Instagram Likeness/Modeling Scams 

Someone noticed you and slid into your DMs with compliments. But now they want you to cash a check and return some of that money.  

“The Muse Scam” starts with a flattering message from someone claiming to be an artist or curator who wants to use your photo for an art project or exhibit:  

• They may say: “I love your look—can I use your photo for a magazine shoot?”
• But things escalate when they insist you be paid to show “proof of consent.”
• They’ll send a fake check (often $2,5000–$5,000) and ask you to return part of it for “processing fees.”
• A third party may contact you to pressure you into a mobile deposit or wire transfer.

Don’t cash the check or attempt to send money back. The check will bounce, and you’ll be liable for the full amount. Bring the check into your financial institution so the fraud team can take a look.  

Some victims also report malware attachments or phishing attempts. 

Apartments, Moving Services and Textbooks Scams

This hot deal on an apartment can be yours, as long as you pay up front. But hurry — this price won’t last forever! 

Scammers prey on what college students may need — a new apartment, textbooks or moving services — and use that to their advantage: 

• Someone contacts you with a great deal you don’t want to miss out on, asks for payment up front and then never delivers the promised goods or services.
• You’re desperate to find an apartment (school starts in less than a month!). Suddenly, you’re offered a rental you can get into immediately. You just need to provide all your personal information first, so the landlord can do a credit check.

Never agree to rent an apartment without seeing both the inside and outside. Don’t fill out paperwork, make a deposit or pay rent until you’ve verified the landlord/property manager is an established business. Never make a deposit or pay rent over the phone. 

Always validate websites and check reviews before you make a purchase or contract a service online. Do they have a real physical address and phone number? If you’re working with a moving company for a long-distance move, consider budgeting extra for moving insurance. 

Fake Job Postings

Summer/post-graduation employment plans weren’t on your radar until someone messaged you on LinkedIn with an open position that’s *perfect* for you.

Scammers know college students will be looking for a job at some point and capitalize on that: 

• Posing as recruiters for well-known companies, scammers may contact you through job boards, LinkedIn or email, inviting you to a virtual interview for a position they say is a “perfect” fit with your skill set. After you accept their offer, they ask you for personal information to “complete paperwork” or send an invoice for items you’ll need and promise to reimburse you after you start. 

Reputable employers will never ask you to pay fees for a job or equipment. And while reputable employers will require personal information, such as a social security number, this information should be completed on a secure platform.  

Don’t use the contact information provided. Instead, look up the company phone number independently and use that to contact them to verify if the offer is real. They’ll want to know if their namesake is being used fraudulently! 

Social Media/Sextortion Scams

“Oops! Wrong number” was how you met, but now you’ve made a real connection with this person. You feel inclined to help them out of a situation they’re in by sending them the money they need – imagine how much they’ll adore you if you do!  

Scammers create fake profiles and even play the long game, taking time to build trust and connection with you. Once they’ve established a bond, they’ll try to manipulate you into sending money or compromising content. 

Tactics include: 

• “Wrong number” texts that lead to fake friendships or relationships
• Offers of money or gift cards in exchange for photos
• Threats to share private content unless paid

Be careful with anyone you meet online and limit what you share online. Don’t engage with strangers who ask for personal info or photos. Report suspicious behavior to law enforcement or your financial institution. 

Scams can be scary. Keep yourself safe by being aware, alert and listening to your gut if something feels off.  

Think you may have been a victim? It happens. Here’s what to do if you were scammed.  

Want to talk it out? UW Credit Union is here for you. If you are unsure about any financial transaction, call us at 800-533-6773 or log into Web Branch to send a secure message. You can also stop by your local campus branch to speak with someone in person.