Back to School Scams- Please Read

SCHOOL SUPPLY SCAM

The rush to buy supplies has already begun and so have shopping scams. Shopping scams are masked in promotions like computers and accessories sold at unheard-of prices, free shipping, fake websites and your chance to win free shopping sprees.

With higher prices, product shortages and supply chain issues, consumers will be looking for more cost-effective ways to fill the school supply list. But there are warnings associated with what appear to be good deals. According to the 2021 BBB Scam Tracker Risk Report Highlights, online purchase scams were the riskiest for consumers, and continue to cost shoppers in 2022.

“Scammers are finding opportunities by enticing shoppers with discounted products,” said Lisa Frohnapfel, President and CEO of the Better Business Bureau Serving Western Michigan. “Each year scammers take advantage of shoppers who don’t do their research, and instead look only for the lowest price.”

TIPS:

• Only visit the websites of reputable brands that you recognize.
• Be wary of deals that are too good to be true.
• Never click on coupons, promotional advertisements, or great deals that you see on your social media feed. Instead, input the website address directly.
• Don’t fall for “free shopping spree” advertisements or promotional material. If you click on the link, it may be a link to malware.

High School Juniors – Potential Victims For Testing Preparation Materials 

SATs, PSATs and ACTs are some of the more stressful tests that a student can take. With college admissions on the line, hiring tutors and getting materials to practice for the tests is a great way to prepare. It’s important to know that all those study guide materials are FREE, but con artists are tricking parents and students into paying for them.

HOW THE SCAM WORKS:

You or your student receive an unsolicited call from a person claiming to be from the College Board, an official organization for college preparation. The caller may have the student’s name, address and even the school’s name and offers to send you the test preparation and study materials. The catch is that the caller requests a deposit, sometimes several hundred dollars, for the materials that they claim will be refunded once you return them. Unsuspecting students or parents will pay the deposit with a credit card and never receive the materials. The scammer now has the credit card and other personal information.

Read more in this Collegiate Parent article, “SAT/ACT Test Prep Scams Are on the Rise“

Remember, the ACT/SAT preparation materials are FREE.

Student Loan Payment 

Forgiveness Scam

Student loan forgiveness for federal student loans has been paused since March 2020 but scheduled to restart on September 1, 2022.

HOW THE SCAM WORKS

Scammers will send emails or texts to students or parents saying that they can reduce or erase the student loan debt owed for a fee. Once the victims wire these criminals the funds, the scammers disappear, and the victims’ student loan debt remains.

In another loan forgiveness scam, the scammer might ask for personal or financial information to start the loan-forgiveness process. Not only will they not help you; they will use your information to take out loans or credit cards in your name, access your bank accounts, or run up fraudulent charges on your credit cards.

TIPS:
Never work with a private company that says it can reduce or eliminate your student loan debt especially if there is a fee.

• Call an official loan provider directly and ask about working out a new payment plan or terms that make your monthly payment more affordable.
• Never pay a fee for debt relief. Legitimate companies don’t charge for such a service.
• Do your research before signing any document or giving money to someone you don’t know.
• Check the status of your federal student loans through the National Student Loan Database System.
• Be cautious before accepting unsolicited offers or help from people pretending to be from the government or your loan company.
• Only call phone numbers and visit websites you know are correct.
• Don’t provide anyone with any personal information, give them access to your finances or NSLDS account, or sign documents allowing others to take action on your behalf.

Check out this site for information from the Federal Student Aid Program: COVID-19 Emergency Relief and Federal Student Aid | Federal Student Aid

And our last tip for this month: Before sending your child off to college, discuss the importance of protecting their identity.   Remind them AND YOURSELF not to provide personal information, bank information, or their social security number to anyone that calls out of the blue.