May 25, 2023
A Podcast by BBB of the Tri-Counties
A Big thank you to Ayers Automotive Repairs in Santa Barbara for supporting this podcast!
This year’s college graduates are getting ready to start their new lives! It’s a big transition that includes several important changes. Grads may be moving to a new city, finding a new place to live, or searching for a new job. Graduation also often means new financial responsibilities, such as starting payments on student loans. College graduates are navigating many life changes, and scammers are eager to exploit their inexperience. The following tips can help new grads avoid common scams.
Know the terms of your student loans
One of the most common ways scammers target college graduates is
with fake loan
forgiveness opportunities. You may receive an unsolicited email,
phone call, or text
message stating that you can qualify for lowered payments through a
debt forgiveness
program. Fill out a form and pay a fee to use the company's
services. Some of these
companies are real, but they pitch their services with false claims
and incomplete
information. Other companies are fakes, only hoping to get their
hands on your personal
information and money. Scammers may also contact college
grads regarding student loan repayment hiatus in response to
COVID-19. See the latest U.S. information on loan repayment.
Check Canada's latest student loan information.. Scammers may
claim that to take advantage of the program, you must complete
a form or pay a fee. You may not need to do this, so check
your facts before giving anyone your information.
Understanding the ins and outs of your student loan - what kind
of interest you owe,
when you need to start paying (in most cases, you won’t need to
make a payment until
six months after you’ve graduated), and for how long you’ll be
expected to make payments - will protect you from these
scams.
Be wary of unsolicited messages about unpaid tuition
Some con artists contact graduates or their parents, claiming some
of their tuition was
left unpaid. The graduate’s degree will be revoked if it isn't paid
immediately. Scammers
may ask you to send money via wire transfer or prepaid debit
cards. Whether you are contacted by phone, email, or text
message, be wary of anyone who contacts you out of the blue.
Government agencies, as well as most higher
education facilities, will contact you by mail initially.
Suppose you aren’t sure if a message is legitimate, research
to verify the person’s claims. Ask to contact them later.
Then, investigate by looking up information on the official
website or calling your school’s bursar’s office. Don’t give
in to pressure to make a decision right away.
Do research before accepting jobs or job interviews
Scammers may offer recent graduates high-paying, easy,
entry-level jobs. Con artists
are skilled at drawing new grads in by promoting unrealistic wages
for generally labeled
job positions, such as “virtual assistant” or “customer service
rep.” They may ask for
your personal information, including your bank account and Social
Security number,
claiming they need it to set up direct deposit or file taxes. In
other cases, scammers
require you to pay for training. In yet another version, you may be
“accidentally”
overpaid with a fake check and asked to send back the extra
funds. If you are considering a job with a company you aren’t
familiar with, do some research before you complete an
application or agree to an interview. Ensure the company
has legitimate contact information and the position is posted
on their corporate website. Scammers often steal the names of
real companies for their phony job postings. For tips for
avoiding scams while job hunting, check out BBB’s report on
employment scams.
Watch out for rental scams
Find a gorgeous apartment in a trendy neighborhood at an
affordable price. There’s a
good chance that it’s a scam. According to a survey by Apartment
List, 43% of people
looking for a rental online have encountered a bogus
listing. In many cases, scammers copy the photo and
description of real property. Then, they post it online with
their contact information and try to get a deposit and the first
month’s rent from the victim. If you want to rent a home
or apartment, find out how much other rental properties in
the area cost before signing a lease. Scammers often lure
victims by promising low rents, extra amenities, and a great
location. It may be a scam if the price seems much better than
elsewhere. Also, be sure to see the apartment or house in person.
Don’t send money to someone you’ve never met for an apartment
you haven’t seen. If you can’t visit an apartment or house
yourself, ask someone you trust to go and confirm that it
is what was advertised. Finally, read the lease agreement
documents before you sign. Don’t be embarrassed to consult
with friends or family members who may be more knowledgeable
on the subject if you have doubts or questions. See this BBB
investigation for more tips on rental scams.
Until next time!