4 common back-to-school scams that could cost you a lot of money

4 common back-to-school scams that could cost you a lot of money

Vladimir Vladimirov / iStock.com

Vladimir Vladimirov / iStock.com

College is expensive enough, but it can cost you even more if you fall victim to a scam that targets students and their parents. The best way to avoid these scams is to educate yourself about them and ways to avoid them.

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Here are some of the most common back-to-school scams to watch out for.

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Textbook fraud

Textbooks can cost hundreds of dollars each semester, so many parents and students look for ways to save money. However, this can leave them vulnerable to fraud.

“Online marketplaces and social media are common platforms for scammers to sell nonexistent textbooks to unsuspecting students,” said Dan Cusick, fraud and claims expert at Wells Fargo.

Cusick warns: If an offer sounds too good to be true, it probably is.

“If the seller is someone you don’t know and they’re offering textbooks at heavily discounted prices, alarm bells should ring,” he said.

“Whatever you do, do not send money or give out account information to anyone you do not know, or give it to a company whose legitimacy you cannot verify. To avoid scams, only buy from trusted sources or merchants.”

This means you need to double-check the website URL to make sure everything is spelled correctly – many scam sites look legitimate but may contain small spelling or grammatical errors.

“If you are sure it is a legitimate website, look for the padlock symbol – that means it is a secure site,” says Cusick.

He also warned against clicking on links in unsolicited emails, text messages or online advertisements promising great deals on textbooks and other school supplies.

“This could be a phishing ploy and a way for scammers to install malware on your device or send you to a fraudulent website,” Cusick said.

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Scholarship fraud

There are numerous scholarships available to qualified students that can significantly ease the financial burden of college costs. However, it is important to be selective when applying for scholarships to avoid scams.

“Scammers target college students by claiming to offer scholarships, grants and other financial aid packages,” Cusick said. “If you receive an email offering you some sort of guarantee that you will win a scholarship, it is a scam.”

“A legitimate scholarship would not simply guarantee you money; it requires an application process. This is just a tactic used by a scammer to obtain your personal information and thus gain access to your identity and bank account.”

You should be cautious if someone asks for bank or personal account information before awarding the scholarship. Another sign that a scholarship is a scam is if someone contacts you instead of applying.

“Students may receive unsolicited scholarship offers by phone, mail or email. If you have not requested information from this provider, that is a red flag,” Cusick said.

“To avoid falling victim to these scams, you should only apply for scholarships and financial aid through trusted sources such as your college, government websites, or other reputable organizations,” he continued. “When you receive information about a scholarship or financial aid, confirm the validity of the offer with your college’s financial aid office.

“Also, never pay a fee to receive a scholarship or apply for financial aid. Avoid services that claim you are only eligible for a scholarship if you pay up front. And never share your personal information with unverified sources.”

Student job fraud

Many college students look for part-time jobs during the academic year to help pay their tuition and living expenses. Unfortunately, there are many scammers who try to take advantage of them.

“Scammers may pose as corporate recruiters,” Cusick said. “It may start with an invitation to apply for a job that is a great lure for students – short hours, remote work and a good salary.”

“After the fake interview, there may be ‘paperwork’ that requires your personal information, and this is their way of stealing your identity,” he continued. “The new ’employer’ may even send you a fake check as an advance payment or to purchase work materials and ask you to send the remaining amount back; this is called check fraud.”

“By the time you realize the check is fake and is being debited from your account, you have already transferred money from your account.”

Always be wary of job offers that sound too good to be true.

“Some job scams look suspicious at first glance, but other scammers may use increasingly sophisticated techniques to appear legitimate. For example, they may spoof academic email addresses, create fake websites, and pose as members of the university/college community,” Cusick said.

Other signs that a student job is a scam include an email that comes from a personal email address rather than a company email address, an offer to send a check before work has begun, and a request to make a payment to secure the job or work materials.

Student dormitory scam

Universities do not always guarantee accommodation for all four years, so students often have to find accommodation themselves. This can make them vulnerable to housing fraud.

“Scammers post fake rental properties, often with real photos and property descriptions stolen from legitimate listings, and promise deep discounts,” Cusick said.

“Once you express interest, you are pressured to immediately send money as a deposit, often via wire transfer or instant P2P payment. Once the money is sent to the scammer, they disappear with your money.”

To avoid this type of scam, look for the following warning signs.

“Avoid offers that require immediate action,” Cusick said. “If you can’t meet in person and view the rental property before paying, keep looking. Be alert if you’re asked to make a payment via wire transfer, gift card or directly into the account of someone you don’t know. These are signs of a scam.”

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This article originally appeared on GOBankingRates.com: 4 Common Back-to-School Scams That Could Cost You Big Money

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