As students prepare to return to school or head off to college, the focus should be on starting fresh and embracing new opportunities.

Sadly, scammers do not take a break during this season.

College students particularly find themselves as easy targets for fraud, according to Dan Cusick, a fraud and claim executive at Wells Fargo, who spoke with YSL News.

However, scams can affect anyone, including the parents of younger students and the students themselves, whether they’re in grade school or high school, added Darius Kingsley, managing director and head of consumer business practices at Chase Bank.

“Scammers target us during times when we are preoccupied and most exposed,” Kingsley remarked to YSL News. “Back-to-school season is a key time to discuss with youngsters and teens how to defend against fraud as they venture into this new phase of shopping and online interactions for school purposes.”

According to Cusick, scammers exploit events in people’s lives or other favorable circumstances.

Young adults aged 18 to 24 are frequent targets

Although elderly individuals often face scamming attempts, young adults aged 18 to 24 are also significant targets. Cusick believes that young people are more accessible to scammers through social media platforms.

The Better Business Bureau’s 2023 Scam Tracker Risk Report shows that individuals aged 18 to 24 reported a higher average loss in scams ($155) compared to other age groups for the first time in 2022.

Employment scams emerged as the most common type of fraud affecting this age group, with many being more likely to report financial losses when approached via text message or online payment methods.

College represents a significant step towards independence

Transitioning to college can be a “life-altering event, particularly for first-year students, a prime time for scammers to take advantage,” Cusick noted.

“They may lack experience in certain areas. For instance, many have never signed a lease or purchased textbooks before, and suddenly they’ll be bombarded with job opportunities that they didn’t seek out but are now being presented to them,” he added.

This combination of inexperience and the pressures of preparing for their initial classes, such as buying textbooks, creates fertile ground for scams, he explained.

Young adults newly adjusting to independence or still adapting to college life may lack certain life experiences, Cusick pointed out.

“Everything feels fresh, and they might not consider that the individuals they’re interacting with aren’t necessarily acting in their best interest,” he noted.

Frequent scams targeting college students

Here are some of the most common scams aimed at college students, along with preventative advice from Wells Fargo:

• Textbook scams: Online marketplaces and social media are popular places for students to purchase used books, but these venues can also be breeding grounds for scams, according to Cusick. Always verify and confirm the legitimacy of websites before making purchases, or consider visiting your college bookstore in person. Be cautious of unusually low prices for textbooks. When buying from another person online or in person, ensure you trust the seller and remain cautious when using peer-to-peer digital payment methods, as they function like cash and are often difficult to recover. Using a credit or debit card can provide more protections, as outlined by federal law. Zelle is a bank-operated payment option, but it doesn’t carry the same federal protections as credit cards. Cusick advises that credit cards typically offer the best security because the funds aren’t withdrawn from your account immediately, unlike with a debit card.
• Scholarship scams: Given the high costs of college, many students seek scholarships. Be wary of unsolicited scholarship offers from unknown sources, warned Cusick. Be skeptical of unexpected communications—whether calls, texts, emails, or social media messages—that ask for an application fee for financial aid or scholarships.
• Job scams: Many college students are on the lookout for work opportunities while studying. Some scammers impersonate recruiters or advertise enticing job offers, such as flexible hours, remote work, and appealing pay. Exercise caution with any job offers that include a prepayment item, especially if the employer requests you to return a portion of the money, as seen with advance-fee fraud schemes. Trustworthy job opportunities can often be found at career fairs or through reputable recruitment agencies.
• Housing scams: As students look for their first apartment or house for the upcoming school year, they may encounter scammers posting fake rental listings, often featuring real photos but offered at significantly discounted rates. These fraudsters frequently rush prospective renters into making quick payments. Cusick recommends visiting the property in person before committing.

Young children and families are also at risk

Younger children and teenagers are also susceptible to digital scams due to their active engagement in online gaming and social media, noted Kingsley.

“It’s crucial to talk with your kids about fraud risks and best practices for safe technology use, including advising them on limiting the personal information they share online,” he emphasized.

Families, eager to snag deals and save on back-to-school supplies, can also fall prey to scams.

“Scammers recognize this eagerness and take advantage, often peddling counterfeit items on online platforms,” he mentioned.

Additionally, here are two scams that Kingsley and Chase want families to be aware of:

• Video Game Scams: In April, the Consumer Finance Protection Bureau cautioned about a surge in scams linked to in-game purchases. Well-known video games that sell in-game currency and virtual items could be targets for scammers looking to exploit players’ financial information and resources. Often, players may not receive the digital currency they paid for, Kingsley explained. Scammers might employ various methods to gain entry to users’ accounts to pilfer any purchased game currency and additional assets for resale, as well as personal data.
• Fake or Nonexistent Merchandise Fraud: This type of scam sees victims attempting to buy products through online auctions, marketplaces, or social media, only to end up with nothing or counterfeit goods. Be wary of individuals selling event tickets outside of established ticket websites; particularly, scammers may focus on sold-out shows, requesting digital payment while ultimately providing fake tickets, cautioned Kingsley.