Tips for the Unsuspecting Student

Monday, August 10, 2009

You are excited about embarking on your college years. This should be the time of your life – as long as you keep in mind that not everyone out there is above-board and honest! Whether an offer is online, in the mail, or posted on a bulletin board around campus, be aware of some typical scams that target college students and avoid them!

Roommate/Rental scheme - If you don’t live in the dorms, you will be looking for an apartment and most likely roommates to share the expense, so you post an ad. You get a phone call accepting the rental agreement that has been posted. The call may come from a student in a foreign country, a student that will be unable to attend the first week of college, or one who says they will be flying in from across the country. In any case, the scamster says that they have the rent in the form of a money order which will be higher than the amount that was requested. The instructions along with this money order usually state, “cash this money order, use what you need to, and send me back the rest.”

You will find that the money order is fake, that if you cashed it, you are subject to arrest, felony charges, and jail time. Better bet to find a roommate is thru the campus student life center.

Credit Cards - You will see applications all over campus from credit card companies offering student credit cards. While it is important to build credit, it is more important to maintain good credit. Many of these cards will hit students with an annual fee that is charged at the time of the first charge or high interest rates on purchases. Keep in mind that you do have to pay for what you charge eventually and that it’s best to pay off credit card bills every month.

Employment – Beware ads that pop up near campuses advertising for jobs such as painting or sales jobs for college students. Most often these “opportunities” are bogus and have been known to fine students for not selling enough! If you are interviewed in a hotel lobby or required to sign a contract, or you have to pay for everything, including training, travel, lodging, food, etc. associated with the job, forget it!

Scholarship/Grants - Many scholarship-finding services will tell you that "millions of dollars in private scholarship money goes unused every year." These services sell lists to students of potential scholarship or grant opportunities. The fact is, nearly all available financial aid comes from the federal government or from individual colleges. No one can guarantee that they'll get you a grant or a scholarship. Refund guarantees often have conditions or strings attached. Get refund policies in writing—before you pay. Free money shouldn't cost a thing.

Safeguard Your ID – College students are prime targets for Identity Theft. Keep close tabs on your driver’s license, student ID, debit or credit cards, bank information, etc. Be wary of any online solicitations

for your personal information via email phishing/vishing, shopping venues, and social networking sites, and NEVER give it out.

Online Shopping Deals - Victims see an item they want for sale online -- like the latest electronic gadgets -- for a price they can't pass up. You might not normally be able to afford these items, so these steep discounts are especially appealing. However, after money is sent, the item is not received.

Trial Offers – From Fitness Club memberships to Magazine Subscriptions to Acne Medicine, Diet Pills, or free DVDs and CDs, know how much these products and services are going to cost you once the “Free Trial Offer” expires.

Best piece of advice: If it sounds too-good-to-be-true, it probably is!