As college costs soar, students and their families are more eager than ever to find financial aid to help cover expenses. Unfortunately, scammers exploit this eagerness by promoting fake scholarships and grants that require upfront fees or sensitive personal information. This article will show you how to protect yourself and ensure your financial aid journey is safe and rewarding.

What Is the Scholarships and Grants Scam?

This con involves fraudsters promising “guaranteed” or “exclusive” financial aid opportunities in exchange for an upfront fee. They may claim to have insider knowledge of secret scholarships or government grants that aren’t available to the public. Some scammers may even pose as representatives from legitimate organizations or institutions, reaching users through emails, social media posts, phone calls, or in-person seminars. In reality, these promised scholarships or grants don’t exist, and the victims lose their money without receiving any financial aid. And their personal information may be used by scammers to commit identity theft or make unauthorized bank account withdrawals.

Example of the Scam

Adeline, a high schooler, receives an email congratulating her on being selected for a “prestigious scholarship” based on her academic achievements. The email instructs her to pay a processing fee of $200 to secure the scholarship. Adeline, excited about the opportunity, has her parents send the money, but they never hear back from the organization and Adeline doesn’t receive any scholarship funds.

Tips for Protecting Yourself

• Question unsolicited correspondence. Be wary of unsolicited offers for scholarships or grants, especially those requiring upfront fees.
• Research programs thoroughly. Before applying or providing any information, research the scholarship or grant program and verify the organization’s legitimacy through independent sources.
• No guarantees, no fees. Legitimate scholarships and grants aren’t guaranteed and rarely require fees for application or processing. If a scholarship asks for money upfront, it’s likely a scam.
• Verify credentials. Check the organization’s contact information and credentials. Look for reviews and testimonials from other students or organizations.
• Consult your school. Contact your school’s financial aid office for information about legitimate scholarship and grant opportunities.

If You’ve Been Scammed

• Contact us. If your account information has been compromised or if you believe you’ve mistakenly paid a scammer, let us know.
• Dispute charges. If you paid with a credit card, contact your credit card company to dispute the charges and request a refund.
• Report the scam to the FTC. File a report with the Federal Trade Commission at ReportFraud.FTC.gov and your local law enforcement agency.
• Report the scam to your state attorney general. You can find their contact information at naag.org.
• Warn others. Share your experience with friends, family, and your school’s financial aid office to raise awareness about the scam and prevent others from falling victim.

Contact us to learn more about safeguarding your financial information and securing your accounts. Our experts are here to help.