10 Scams University Students should be Wary Of

Navigating university life is a thrilling yet challenging journey.

Amidst balancing classes, social activities and newfound independence, students often face an array of unforeseen risks, including scams specifically targeting them.

These fraudulent schemes can range from fake emails to catfishing, all designed to exploit the inexperience and vulnerabilities of young adults.

As the digital age continues to evolve, so do the tactics of scammers, making it crucial for university students to stay informed and vigilant.

We delve into 10 prevalent scams that university students should be wary of, providing essential insights and tips to help them safeguard their finances, personal information and overall well-being.

Fake Emails from the Student Loans Company

A common scam email targeting students pretends to be from the Student Loans Company but is actually a fraud.

Scammers aim to create panic by sending emails claiming your account is suspended and asking you to urgently reply with your bank details or other personal information to receive your loan payments.

If you get an email and aren’t sure if it’s legitimate, stay calm and investigate it thoroughly.

Ignore any email requesting personal or financial information, no matter how convincing it seems; legitimate organisations will never ask for sensitive information via email.

Be wary of emails lacking specific details, such as addressing you as “Dear Student” instead of using your name, and watch for poor spelling and grammar, which often indicate a scam.

Regularly check the Student Loans Company website for updates and verify any suspicious emails against the information provided there.

Bogus Grants & Bursaries

If you receive an email claiming to be from your university, informing you that you’ve qualified for a grant or bursary you never applied for, be very sceptical.

The next step will likely involve someone requesting your bank details to deposit the grant or bursary, which can then be used to steal from you.

Exercise caution with such emails.

Compare the email address with other official university emails you have received. Check the design and layout for consistency.

Pay attention to spelling and grammar. For example, if you’re a student of Queens’ College, University of Cambridge, and you receive an email from “Queen’s College Cambrigde”, it’s clearly suspicious.

Help protect your fellow students by reporting such emails to college authorities so everyone can stay alert.

Fake Freshers’ Events

Falling for this scam might only cost you five or ten pounds, but it’s still frustrating.

When you’re new to university and looking for events to attend with your new friends, you might encounter people selling tickets for various events like society gatherings, student union parties, and club nights.

The scammer blends in with legitimate events, sells tickets to a fake event, and disappears before you realise it’s a scam when you arrive at the non-existent venue.

This scam isn’t easily detected by poor quality tickets, as many legitimate student societies use photocopied tickets with typos.

If you’ve heard about such scams at your university, research the event before buying a ticket.

A quick Google search can reveal if the venue exists and if the event is actually happening.

Catfishing

One of the more devastating scams is catfishing.

Usually, it involves chatting with someone on social media or a student forum. You become friends or even develop a romantic relationship, all taking place online.

There are always excuses for why you can’t video chat or meet in person.

Eventually, they reveal they’re in financial trouble and ask if you could send them some money.

From a distance, this classic scam seems obvious, but scammers are careful about who they target.

Students stressed about exams and university, isolated from their support network and surrounded by friends dealing with similar pressures, are ideal victims.

Be cautious of online friends who are unwilling to video chat or make phone calls.

Fake Landlords

Even legitimate landlords and letting agencies can sometimes leave you feeling overcharged with high administrative fees and deposits.

However, fraudulent landlords take this a step further.

International students, who often need to secure accommodation without viewing properties in person, are prime targets.

These scammers post ads for houses or apartments that either don’t exist or aren’t theirs to rent, ask for deposit money or other fees upfront, and then disappear, leaving the student without money or a place to stay.

To avoid such scams, rent only through reputable landlords and letting agencies.

If possible, view the property in person before paying any deposits.

This ensures the property exists and the landlord has the keys and helps you avoid unpleasant surprises like a flat that’s much smaller than the photos suggest.

Additionally, once you find a place to rent, ensure your deposit is placed into a recognised tenancy deposit protection scheme, which is a legal requirement for landlords in most cases.

Money Laundering

If someone asked you to hold a large sum of money, take a cut and then transfer the rest to another account, you’d probably be suspicious.

But what if it was presented as a job with a convincing title like Payment Processing Agent?

This is known as the money mule scam. Students enticed by the promise of easy money might provide their bank details to fraudsters, risking their savings being stolen.

Even if the scammer only does what they promise – allowing the student to take a small cut for transferring a large amount of money – the student is still participating in money laundering, which can lead to up to 10 years in prison.

A variation of this scam involves befriending a student, posing as another student who claims they can’t access their loan through their bank account.

They ask if they can transfer the loan into your account and have you transfer it on.

By doing what seems like a favour for a friend, you might inadvertently be laundering money for a criminal.

Fake Jobs

Money laundering schemes are just one type of fake job scam targeting students.

Another common scam is job adverts for non-existent jobs.

After spending time crafting your cover letter and CV, the supposed employer is so impressed that the interview process is skipped and wants you to get started straight away.

However, before you can begin, they require a £200 administration fee and £300 for a Disclosure and Barring Service (DBS) check – a legitimate check that usually costs no more than £75.

If you pay these fees, you’ll likely face more bogus charges. If you refuse, the only way to contact them will be through a premium-rate number, costing you even more.

As a general rule, be wary of any job that offers an immediate start without an interview or trial shift.

Fake job offers often come from companies you’ve never heard of and use unconvincing email addresses. A genuine employer will never ask you to pay to get hired.

Pyramid Schemes

Another classic job scam that often targets students is a pyramid scheme.

The concept is simple.

It starts with a single person – the scammer. They present an investment model where you pay them a fixed amount, say £100, and they promise to pay you the same amount for every person you recruit to invest in the same manner.

However, there is no actual way to generate money; the scheme relies solely on recruiting more participants.

You only recoup your money if you recruit others, who must then do the same to recover their investment. The vast majority of participants, typically at the bottom, end up losing their money.

While this might sound easy to detect, pyramid schemes are often disguised as legitimate businesses.

For example, you might be offered a job selling makeup, where you must purchase an initial stock and are encouraged to recruit more sellers.

Despite the presence of a product (which is usually worthless), it remains a classic pyramid scheme.

If you are offered a job that requires you to pay for product inventory and includes a recruitment aspect, scrutinise the structure carefully before investing any money.

‘Free’ Trials

A free trial scam, commonly known as a subscription trap, operates on a familiar principle.

You provide your bank details to sign up for a free trial, which could be for anything from software to muscle growth supplements, often only requiring payment for postage and packaging during the trial period.

Some companies rely on you forgetting to cancel the trial, which, while unethical, is not illegal.

The scam aspect arises when the condition that you’ll be charged unless you cancel is hidden in small print, making it easy to overlook.

Additionally, attempting to cancel can be costly and frustrating, involving premium-rate phone lines and long hold times intended to deter you.

In some cases, the company may be impossible to contact. To protect yourself, always read the terms and conditions thoroughly before signing up for any free trial.

Cash Machine Tampering

Cash machine tampering can affect anyone, but university students are particularly vulnerable because they often withdraw small amounts of money from various locations and rarely visit a bank in person.

This scam can range from sophisticated methods, such as installing technology on the ATM to skim your card or copy your PIN, to simple tactics like a stranger loitering behind you to read your PIN over your shoulder before snatching your bag or picking your pocket later on.

To avoid falling victim to this scam, always cover your PIN when entering it and avoid using a cash machine if someone is standing too close.

Additionally, be vigilant for any signs that something might be wrong with the machine, such as loose plastic, a spongy keypad, or an oversized or blocked card slot.

If you are worried, use a different ATM and prioritise your safety.

Awareness is the first line of defence against scams targeting university students.

By recognising the signs of fraudulent schemes and understanding the tactics used by scammers, students can better protect themselves from falling victim to these deceitful practices.

From fake emails to fake job offers and identity theft, the threats are numerous and evolving. Staying informed, exercising caution and seeking guidance from trusted sources can make a significant difference in avoiding these pitfalls.