As students and families prepare for a new school year, scammers are looking for opportunities to take advantage of the busy season. Whether you’re shopping for school supplies, paying tuition, or sending a student off to college, it’s important to stay alert and know the warning signs of fraud.
Here are some common back-to-school scams and tips to help protect yourself.
Student Tax Scam
In this scam, a college student or a parent of a college student receives a phone call from someone claiming to be the IRS. The caller demands immediate payment of the unpaid "student tax" via wire transfer, cryptocurrency, or another electronic payment method. They may threaten that the student could lose their place in college, face federal charges, or even go to prison if the payment isn't made right away.
Some helpful reminders:
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There is no such thing as a “student tax.”
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The IRS always contacts taxpayers by official U.S. mail first.
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The IRS will never demand payment by gift card, wire transfer, or cryptocurrency.
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If you receive a call like this, hang up.
Scholarship Scam
These scams often promise scholarships, grants, or other educational funding in exchange for a fee. Scammers may claim that paying up front will "secure" your place or increase your chances of receiving the scholarship. They may also use pressure tactics, such as saying the offer is only available for a limited time and that you must act quickly.
Some things to keep in mind:
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You shouldn’t have to spend money to get money. Legitimate scholarships are free to apply for.
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Verify the source. Scholarships are usually awarded by colleges, reputable foundations, or established nonprofits.
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Do not give away your personal or financial information, such as your credit or debit card number, bank account number, or your SSN.
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If a scholarship is demanding a fee, take it as a warning sign and research the organization before completing an application.
Fake Giveaways
Everyone loves the idea of free school supplies, gift cards, or shopping sprees. While these giveaways do exist and can be legitimate, scammers often use fake contests like these to collect personal and financial information.
Here are some red flags to look for:
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You’re asked to provide personal information, like your debit or credit card number, bank account number, or other personal details, just to claim a prize.
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You’re told that you won a contest you never entered.
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You’re asked to pay a fee to claim your prize.
If a giveaway sounds too good to be true, it probably is. A legitimate giveaway should never require your financial information or a payment to claim a prize.
Scammers are counting on the busyness of the back-to-school season to catch you off guard. By staying informed and alert, you can help protect yourself and your finances from fraud as you head into the school year.
For more tips on safer banking, read more here.
