Four online money scams that target students
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As a student, you spend most of your lives online. And because of this, it can leave you more vulnerable to online scams.
And while some website and email scams are more obvious, scammers are using lots of different methods to try and target your hard-earned money.
Like everyone, students can fall victim to online scams. So, with that in mind, we have put together a list of the most common online scams that target students and how to avoid them.
1. Student Loan Company phishing email scams
We often see phishing scams that target students pretending to be the Student Loans Company (SLC). They tend to ask for personal details and your bank details for payments.
Don’t respond to these emails. The SLC, banks and other organisations will never ask for your personal details over email.
Look out for spelling mistakes in the subject line or email address. They may also use forceful or threatening language such as “‘we will stop your payments.” You should also be aware of odd-looking email addresses or subtle changes to a sender’s email such as Hot-mail.com instead of Hotmail.com.
Sometimes Student Loans Company scam emails can look real. This is how they try to trip students up. If you are concerned about an email from SLC, please login to your account or contact them directly.
Other examples of phishing emails to students include:
- UK Visas and Immigration asking you for money for not attending police registration appointments
- The Home Office asking for personal details or money to correct visa application issues
- The HM Revenue and Customs (HRMC) informing you about a rebate or penalty
- The Royal Mail, Amazon or any other delivery company asking you to make a payment to have your parcel delivered
2. Fake websites and products
We live in a society where new websites and products pop up every day. This includes websites and products from abroad which can be difficult to see if they are genuine. Here’s some examples of how scammers use fake websites:
- Scam online shops that promise deals that are too good to be true. They may also target you through advertisements on social media.
- Fake customer support websites where scammers pose as technical support staff so they can access your computer remotely.
- Fake delivery websites where scammers try to mimic the look of FedEx, DHL, and Amazon websites. They may ask you to verify your address or ask for payment details so they can deliver a parcel.
- Web pop-ups that hackers create to download malware into your computer or device. This helps them scan your hard drive for personal information.
It’s not always easy to tell if a website is fake or not. Always do your research before buying any products or services from a website. Check out online reviews to see if other customers have had negative experiences with the company. Independent review websites such as Trustpilot and Trusted Reviews are a good place to start.
3. Money Mule Scams
Students can be targets of deceptive offers to receive money into their bank accounts and transfer it to another account while keeping a portion for themselves. Don’t be fooled by quick cash offers. Be wary of anyone, including someone you know, who asks you to do this.
This scheme is ‘Money Laundering.’ It involves using innocent individuals to move funds, which are often obtained from serious criminal activities. Being involved in money laundering is a serious criminal offense that can lead to severe consequences, including legal trouble, damage to your credit rating, and having your bank accounts frozen.
- Never open a bank account in your name for someone else, regardless of the promises or incentives they offer.
- Never allow your bank account to be used for sending or receiving funds on behalf of others, even if you know them personally.
- Safeguard your PINs, passwords, and passcodes.
4. HMRC scam
Scammers are making fraudulent calls targeting international students, claiming to be from HMRC (Her Majesty’s Revenue and Customs), falsely stating that the University has not paid the required tax on your behalf.
These scammers may use intimidation tactics, threatening deportation and cessation of your studies if you do not pay a lump sum of money immediately. The callers have told students not to ask anyone at the University about any outstanding tax payments and not to mention these payments to friends or family. The caller may address you by your name and may provide a ‘badge ID number’.
This is a scam, and you should not pay any money to these callers. HMRC will never call you to ask for money, and they will not request you to pay any money on behalf of the University.
Getting support
For more tips on how to protect your money from online and offline scams, please visit our financial safety webpage. You will also find links on where you can get support if you suspect fraudulent activity or have been targeted by a scammer.