Student fraud scams

Employment scams: 

Job hunting can be challenging, especially when you are just beginning your search. The number of job postings out there, many of them asking for qualifications you don’t have just yet, can feel almost limitless. Whether you’re looking for a summer job or a full-time gig, keep an eye out for fake job postings that may appear enticing at first, but turn out to be a front for fraudsters tricking job seekers out of their money or personal information.

Example:

You’re browsing a credible job search website when you come across a job posting offering flexible working hours or high wages requiring little to no experience. The application process is quick and easy, you’ve landed the position before you know it, but then they ask you for money to cover your supplies or training for the job. Once you’ve paid it, you never hear from “your employers” again.

Another common employment scam is the money mule scam. In this case, you receive payment for doing things such as transferring money or opening a bank account. It may seem like easy money, but even unwittingly performing this kind of job could amount to your participation in a financial crime. 

Red flags to look out for:

• An overly simple job interview process or no interview at all, perhaps requiring only an online application
• The employer avoids questions about experience requirements and refuses to provide details about the position
• The employer asks you for personal details like your date of birth, bank account information, or SSN before you’ve secured the job
• Poorly written or vague job descriptions
• Any promises of “easy money”

How to protect yourself:

• Do your research on the employer – is the company reputable?
• Validate the legitimacy of job postings by checking on the company’s official website
• Never send money – a legitimate employer won’t charge you to apply for a job or to participate in training
• Avoid jobs that involve receiving and forwarding funds

Shopping scams:

Who doesn’t love the convenience of online shopping? Today, you can buy just about anything your heart desires from the comfort of your own home. However, online shopping has also opened more opportunities for fraudsters. According to the U.S. Federal Trade Commission, online shopping scams were the second-most common fraud category reported by consumers in 2021.² For this reason, it’s more important than ever to avoid impulse purchases and ensure that your wallet is protected. 

Example:

You’re browsing online for a specific product when you spot it listed on an unfamiliar site at a fraction of the original price. It seems like a great deal, right? Jumping at the chance to save some money, you decide to place an order. However, the item you purchased never arrives; instead, fraudsters have your credit card and personal information.

Another common scam has emerged from the buy-and-sell marketplace, in which fraudsters pose as sellers on legitimate classified platforms and advertise items at bargain prices. When you show interest in buying, the scammer may claim to be travelling and indicate an agent will deliver the product after payment is received. You may even receive an email receipt from the seller’s payment provider, convincing you that the transaction will be fulfilled. Unfortunately, your item never arrives, and your seller is unreachable.

Red flags to look out for:

• The website asks you to pay using a money order, pre-loaded gift card, or wire transfer, or does not support payment through secure payment services such as PayPal
• The product is advertised at an unbelievably low price or claims to have outstanding features that seem too good to be true
• The website has limited information about delivery, returns, and other policies
• The website lacks contact details or has a customer service email address that appears to be a personal one (e.g., ends in @gmail.com)
• The “buyer” pays you more than the price that you agreed on; they immediately request reimbursement for overpayment, but their original payment never clears
• If the transaction involves unusual shipping, processing, or customs fees

How to protect yourself:

• Stick with familiar vendors; well-known companies present a lower risk of fraud
• Compare prices with other online sellers and be wary if the same item being offered at a steep discount on one website isn’t being priced similarly elsewhere
• Make smart check-out decisions: use secure payment services only and look for URLs starting with https:// and a closed padlock symbol, meaning the website uses encryption to protect your data
• If possible, use mobile payment apps or digital wallets like Apple Pay and Google Pay, which are more secure than directly entering your card details due to their tokenisation mechanism designed to prevent credit and debit card fraud online
• Do your research: read the reviews, both on the website itself as well as elsewhere on the Internet, and check the vendor’s refund and returns policy
• If shopping from a reseller of goods, check to see whether the store is authorized to sell the brand’s products
• Avoid shopping online using public Wi-Fi connections

Investment scams:

You’ve earned some money and now you want to start putting it towards your future – a good idea, and a popular one too. Approximately 80% of young people are now investing their money for the years to come³. However, with the anonymity of social media and the growing popularity of untraceable investments like cryptocurrency, investment scams are on the rise. Always do you research or consult with a trusted financial advisor before investing in your money.

Example:

You get a message from someone you consider a friend on social media, pitching you an investment opportunity. They promise you high returns and even claim to have made thousands of dollars investing in it themselves. It all sounds good, but once you invest, you realize your money has disappeared – and that “friend” you thought you had been talking to is actually a fraudster who hacked into their social media account to take advantage of your trust.

Red flags to look out for:

• You are contacted out of the blue with unsolicited investment advice, whether it be from a stranger or a friend
• The individual uses high pressure tactics to convince you to buy or you are told you need to act quickly, or the opportunity will pass you by
• You are told you are being given insider information to entice you to join an “exclusive” in-group
• The opportunity sounds too good to be true: it is described as low risk, yet with fast and high returns

How to protect yourself:

• Be skeptical of investment opportunities offered on social media, even if it’s a recommendation from what appears to be a friend
• When in doubt, don’t click on any links sent by others
• Do your own research on investments and invest only through reputable sources
• Never transfer money to others online to invest on your behalf

The bottom line:

Being a student could put you at risk for certain scams that are difficult to detect, and it’s important to be aware of the warning signs to avoid becoming a victim. If you suspect that you may have been scammed or observe unusual activity in your bank account, contact your bank immediately and report to the Federal Trade Commission (FTC).