As the new academic year kicks off, the FTC warns of a growing tuition scam targeting students and their families. Scammers are posing as school representatives, claiming a student has unpaid tuition fees and pressuring victims to pay immediately. They aim to steal personal information or money from unsuspecting victims.
How it Works
Scammers contact you by phone or email, claiming unpaid tuition is due. They demand immediate payment via untraceable methods like wire transfers, gift cards, or peer-to-peer payment apps, threatening the student’s expulsion or loss of class registration if you don’t comply.
Common Signs of a College Tuition Scam
- Urgency and threats: Scammers will often create a sense of panic by saying tuition must be paid immediately to avoid drastic consequences. In contrast, genuine school billing offices typically provide multiple notices and payment options before significant consequences exist.
- Unusual payment methods: If you are asked to pay with gift cards, cryptocurrency, or a peer-to-peer app, this is a major red flag. Legitimate institutions will offer traditional payment methods, like credit cards, checks, or direct bank transfers.
- Unverified contact information: Scammers often use generic email addresses or phone numbers not affiliated with the actual institution. Always verify the sender’s identity by contacting the school directly using their official contact information.
How to Protect Yourself
- Verify the request: If you receive a call or email about unpaid tuition, contact your school’s billing department using the information on their official website. Don’t rely on the contact information in the suspicious message.
- Don’t rush: Scammers rely on making you act quickly out of fear. Take a moment to think through the situation and verify if the request is legitimate.
- Monitor your accounts: Regularly check your bank accounts via digital banking services for any unauthorized transactions. If you notice anything suspicious, report it to your financial institution immediately.
- Use secure payment methods: When paying tuition or fees, use secure payment options like credit cards or direct transfers from your bank account, as these often offer better fraud protection.
If you believe you’ve been targeted by a college tuition scam, contact your financial institution immediately to try to recover any funds lost. Lisle Savings Bank is here to help you with resources and support if you encounter fraudulent activity of any kind.
For more information on safeguarding your personal information and staying updated on the latest scams, visit FTC.gov.