These Five Scams Are Targeting Recent College Grads
After the celebration ends, college graduates typically face numerous transitions, from moving to a new city and/or starting a new job to taking on student loan payments and other financial responsibilities. College students are often targeted for job scams, but the Better Business Bureau is alerting recent grads about schemes being employed specifically to steal their personal information and money during this transition period.
Unpaid tuition scam
Imagine getting a call after graduation that you have an outstanding tuition payment, and unless you pay the bill immediately, your diploma will be rescinded. Scammers are using this threat to con recent grads—who have, in fact, paid their full tuition—into sending money via wire transfer or prepaid debit card, which cannot be tracked or recovered. Another version of this scam attempts to convince college students (and/or their parents) that they owe tuition and need to pay immediately to ensure they remain enrolled.
If you receive an email, text, or call about an unpaid bill, do not engage—instead, contact your school's bursar or financial services office directly. You will typically receive communication from higher education institutions by mail or via a secure student portal—not as an urgent message demanding money.
Student loan scams
Student loans have been targets for scammers for years—made easier by the starting and stopping of loan forgiveness programs—and recent college grads who are getting ready to make their first payments are common victims. You may get an unsolicited call, text, or email from a company offering debt relief or debt forgiveness services for a fee. In some cases, the company is legit but making false claims, and in others, the whole thing is a scam. They may ask for upfront payment, usually via gift card or wire transfer, and never deliver, or gather a bunch of personal information that can be used to steal your identity.
While the status of loan forgiveness can be difficult to follow, you should know the details of your loan, including when payments are due to begin, and look for official sources regarding loan forgiveness options.
Job scams
Employment scams range from fake job listings to unsolicited texts from "recruiters" offering a position while demanding personal information and payment for "training." Recent grads may be promised an entry-level remote role 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 have you pay upfront for training or equipment you never receive (because the job isn't real) or pay you too much with a fake check and ask for reimbursement via app or wire transfer.
No one is getting too-good-to-be-true jobs in this market. Always do your due diligence on companies before applying for a position or accepting an offer: Review the official website for contact information and job postings, and consider reaching out to HR or employees you locate independently to confirm that a position is legit. Don't ever 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 immune. Moving companies may charge more money than was quoted and, in the worst cases, hold your stuff hostage unless you pay. Or they may simply not show after you've paid a deposit for the move.
Red flags for moving companies include estimates delivered quickly and with little information collected about your move, full payments demanded before the move, and non-refundable deposits paid via peer-to-peer apps and bank transfers (negating the protection of credit cards). Thoroughly research the company to understand how moving brokers operate, and make sure you get everything in writing.
Rental scams
If you make it through the actual move unscathed, you could still encounter a rental scam. As with job scams, these involve listings that sound too good to be true, with lots of amenities in a desired location at an affordable price. (Like job scams, most renters aren't getting these deals in this market.) Fraudsters may even use real properties in their listings to lure you in. Once they have you, they collect a deposit, first month's rent, and a bunch of personal information while leaving you with nowhere to live.
While you may pay your actual rent via 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. Search the listing on Zillow, Redfin, and other rental sites to look for inconsistencies that could indicate a scam. Verify the address, look at Google street view, and visit (or send someone you trust in your place) before paying any money if you can.