Protecting Your College Student from Financial Scams: A Parent's Guide

As your child embarks on their college journey, it's crucial to equip them with the knowledge to protect themselves from financial scams. Unfortunately, college students are often prime targets for fraudsters due to their newfound independence and limited financial experience. This guide will help you understand the most common scams targeting college students and provide actionable advice to keep your child safe.

1. Phishing Scams: The Digital Deception

Phishing scams are among the most prevalent threats to college students. According to the FBI's Internet Crime Report, phishing was the most common type of cybercrime in 2020, with 241,342 reported incidents.

How it works: Scammers send emails or text messages that appear to be from legitimate sources, such as the university's financial aid office or a popular campus service. These messages often contain urgent requests for personal information or login credentials.

Protection tips:

• Advise your student to never click on suspicious links in emails or texts

• Encourage them to verify the authenticity of messages by contacting the institution directly through official channels

• Suggest using two-factor authentication for all important accounts

2. Scholarship Scams: False Promises of Financial Aid

The Federal Trade Commission (FTC) reports that students lose millions of dollars annually to scholarship scams. These schemes prey on students' desire for financial assistance.

Red flags:

• Unsolicited offers for scholarships or grants

• Requests for upfront fees to apply or receive funds

• Guarantees of scholarship awards without application

Protection tips:

• Remind your student that legitimate scholarships never require payment

• Encourage thorough research of scholarship opportunities through reputable sources like Federal Student Aid

• Advise against sharing personal financial information with unfamiliar entities

3. Job Scams: Too Good to Be True

The Better Business Bureau (BBB) reports that job scams were the riskiest scams for consumers in 2020, with a median loss of $1,000 per victim.

Warning signs:

• Job offers that require payment for training or certification

• Positions with unusually high pay for minimal work

• Requests for personal banking information early in the application process

Protection tips:

• Encourage your student to use their university's career center for job searches

• Advise them to research potential employers thoroughly

• Remind them that legitimate employers never ask for payment from applicants

4. Credit Card Scams: The Debt Trap

A study by Sallie Mae found that 57% of college students have at least one credit card, making them attractive targets for credit card scams.

Common tactics:

• Offers for credit cards with unrealistic terms

• High-pressure sales tactics on campus

• Promises of instant approval regardless of credit history

Protection tips:

• Educate your student about responsible credit use

• Encourage them to read the fine print on all credit offers

• Suggest they check their credit report regularly at AnnualCreditReport.com

Staying Informed and Vigilant

The key to protecting your college student from financial scams is ongoing education and communication. Encourage them to stay informed about current scam trends by using resources like the BBB Scam Tracker. Remind them that if an offer seems too good to be true, it probably is.

By fostering open dialogue about financial safety and equipping your student with the knowledge to recognize and avoid scams, you can help ensure their college experience is financially secure and rewarding.