As a student, managing your finances can already feel challenging. Balancing tuition fees, rent and living costs while possibly working part-time can make every penny count. Unfortunately, this financial pressure has made students a prime target for scammers. Understanding the types of fraud aimed at students are and how to protect yourself is crucial to avoid falling foul. In this article, we will explore some of the most common scams targeting students and offer advice from trusted sources, such as the police and banks, on how to stay safe.
Why Are Students a Target?
Students are often seen as easy prey by scammers for several reasons. Firstly, many students are managing their own money for the first time and may not be fully aware of the various types of scams. They are also often financially stretched, which may make them more susceptible. The rise of technology and online banking has provided scammers with new ways to target young people.
Common Scams Targeting Students
1. Smishing Scams
Smishing (SMS phishing) is on the rise, with fraudsters sending fake text messages that appear to be from your bank or other trusted institutions. These messages often contain urgent warnings, prompting you to click on a link or provide personal details such as your bank account information or National Insurance number.
Once you’ve provided these details, scammers can access your account and withdraw funds or steal your identity. According to the UK Government, smishing scams targeting students are becoming increasingly sophisticated.
How to avoid it:
- Never click on links in unsolicited text messages.
- If you receive a suspicious message, contact your bank or the relevant organisation directly using official contact information to verify its authenticity.
2. Fake Housing Scams
Finding accommodation can be stressful, and scammers are ready to exploit that. Fake listings are often posted on websites and social media platforms, offering attractive, affordable student housing. Scammers may ask for a deposit upfront to secure the property, only for students to discover that the listing was fake and the scammer disappears with their money.
How to avoid it:
- Always use reputable letting agents or platforms when searching for student accommodation.
- Never transfer money or make a payment before viewing the property and signing a legitimate rental agreement.
- Nicholas Humphreys, for example, offers fully verified properties and a team of estate agents you can trust.
3. Tuition Fee Scams
With university tuition fees being a significant financial commitment, scammers have devised ways to capitalise on this. Fraudsters may pose as the Student Loans Company or university officials, offering to “help” pay your tuition fees in exchange for your personal details or an upfront fee. This is especially common around term start dates when students are focused on managing their finances.
How to avoid it:
- Be wary of unsolicited offers to help with tuition payments.
- Verify any communication by contacting your university or the Student Loans Company directly.
- Never share your personal information or banking details unless you are sure of the identity of the requester.
4. Job Scams
Many students look for part-time work to support themselves while studying. Scammers often post fake job listings, offering flexible, well-paid work that seems perfect for students. However, these jobs often come with a catch, such as requiring an upfront payment for training or equipment or asking you to transfer money through your personal bank account—a classic money-laundering scam.
How to avoid it:
- Be cautious of job offers that seem too good to be true, especially those that require you to pay any kind of fee upfront.
- Research the company thoroughly and check reviews on platforms like Glassdoor.
- If a job asks you to transfer money using your account, it is likely a scam.
5. Phishing Emails
Phishing emails are a common method used by scammers to trick students into revealing their login credentials or financial information. These emails often appear to be from legitimate institutions, such as your university or bank and contain a sense of urgency—warning you that your account has been compromised or that you need to update your information.
How to avoid it:
- Always check the sender’s email address for legitimacy. Many scam emails use addresses that are similar to official ones but contain subtle differences.
- Never provide sensitive information such as passwords or bank details via email.
- If you receive a suspicious email, do not click on any links—report it to the relevant organisation and delete it.
Advice from the Experts: How to Protect Yourself
1. Banks’ Advice
Banks, like Lloyds Bank, advise students to be vigilant with their finances and regularly check their bank statements for any unfamiliar transactions. Setting up mobile banking alerts can help you stay on top of any unexpected withdrawals. Make sure to use strong, unique passwords for all online accounts and avoid sharing them with anyone.
2. Police Recommendations
The police suggest always reporting any suspicious activity to Action Fraud, the UK’s national fraud reporting centre. They also recommend keeping your personal details secure and never sharing them on social media. Be cautious when using public Wi-Fi for online banking or shopping, as these networks can be insecure and make you vulnerable to hackers.
3. Stay Informed
Staying informed is one of the best ways to protect yourself from fraud. Regularly check for updates on common scams aimed at students and learn how to spot red flags. Websites like Save the Student offer practical tips and up-to-date information on the latest scams. If something seems suspicious, it’s always worth double-checking before taking any action.
What to Do If You’ve Been Scammed
If you suspect you’ve fallen victim to a scam, it’s essential to act quickly. Contact your bank immediately to freeze your accounts and prevent any further fraudulent activity. Report the scam to Action Fraud and if necessary, change your passwords for any compromised accounts. While it can be distressing, swift action can limit the damage and increase the chances of recovering lost funds.
Stay Safe and Vigilant
While scams targeting students are becoming more common, being aware of the tactics scammers use can help you avoid falling victim. Remember to stay cautious, verify any suspicious communication and seek advice from trusted organisations like your bank or university if something feels off. Financial security is a vital part of student life, so take the time to protect yourself.
