These 5 Scams Target Recent College Graduates
Once the celebrations are over, college graduates typically face numerous transitions, from moving to a new city and/or starting a new job to paying off student loans and other financial obligations. College students are often targeted by job scams , but the Better Business Bureau is warning recent graduates about schemes that are specifically designed to steal their personal information and money during this transitional period.
Unpaid Tuition Fraud
Imagine getting a call after graduating saying you owe tuition and that unless you pay your bill immediately, your degree will be forfeited. Scammers use this threat to trick recent graduates who have actually paid their tuition in full into sending money via wire transfer or prepaid debit card that cannot be traced or recovered. Another version of this scam tries to convince college students (and/or their parents) that they must pay their tuition and must do so immediately to ensure they remain enrolled.
If you receive an email, text message, or call about an unpaid bill, don’t get involved — instead, contact your school’s treasurer or financial services office directly. You’ll typically receive communications from higher education institutions via mail or a secure student portal, not as an urgent message demanding money.
Student Loan Fraud
Student loans have been targets for scammers for years —made easier by the rise and fall of loan forgiveness programs—and recent college graduates who are preparing to make their first payments are common victims. You may receive an unsolicited call, text, or email from a company offering debt relief or forgiveness services for a fee. In some cases, the company is legitimate but makes false claims, and in other cases, the whole thing is a scam. They may ask for an upfront payment, usually via a gift card or wire transfer, and never deliver, or they may collect a bunch of personal information that can be used to steal your identity.
While loan forgiveness status can be difficult to track, you should be aware of your loan details, including your payment start date, and seek out official sources regarding loan forgiveness options .
Employment fraud
Employment scams range from fake job postings to unsolicited text messages from “recruiters” offering a position while demanding personal information and payment for “training.” Recent grads may be promised entry-level remote work at a completely unrealistic salary, and scammers collect everything from your Social Security number to your bank account information in exchange for the offer. Other schemes trick you into paying upfront for training or equipment you’ll never receive (because the job isn’t real), or overpaying you with a fake check and asking for a refund via an app or wire transfer.
No one gets a job that’s too good to be true in this market. Always do your due diligence on companies before applying for a position or accepting an offer: check the official website for contact information and job postings, and consider contacting HR or employees you’ve found yourself to confirm the position is legitimate. Never pay for anything up front.
Moving scams
The moving industry seems to be rife with scams, and recent grads who need to move across town or out of state are not covered. Moving companies may charge more than they quoted and, in the worst case, hold your belongings hostage if you don’t pay. Or they may simply not show up after you’ve put down a deposit for the move.
Red flags for moving companies include quick estimates and little information about your move, demands for full payment before the move, and non-refundable deposits paid through peer-to-peer apps and bank transfers (which negates credit card protection). Research the company thoroughly to understand how moving brokers operate , and make sure you get everything in writing.
Rental scam
If you’ve made it through the move itself, you may still encounter rental scams . Like job scams, there are listings that sound too good to be true, with lots of amenities in a desirable location at an affordable price. (Like job scams, most renters don’t get these offers in this market.) Scammers may even use real properties in their listings to lure you in. Once you’re there, they take a deposit, first month’s rent, and a bunch of personal information, leaving you homeless.
While you can pay the actual rent through Zelle, PayPal, or Venmo, you shouldn’t use these services to send a deposit for a rental you haven’t seen to a landlord you haven’t met. Review the listing on Zillow, Redfin, and other rental sites to look for discrepancies that could indicate a scam. Check the address, look on Google Street View, and visit (or send someone you trust in your place) before paying any money, if you can.