College 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. How can new grads avoid common scams during this time in their lives?
“Graduation is a time of exciting transitions—but it can also leave new grads vulnerable to financial scams,” says Neesha Hothi, Director of Marketing & Communications at BBB. “Scammers know that grads are job hunting, apartment hunting, and managing new responsibilities. That’s why it’s more important than ever to pause, research, and ask questions before sharing personal information or making a payment.”
1. Know the terms of your student loans.
You may receive an unsolicited email, phone call, or text message stating that you can qualify for lowered payments through a debt relief or debt forgiveness program. All you have to do is 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.
For help with government student loans, read more tips about the Federal Government’s Loan Repayment Assistance Program and Student Aid BC’s Loan Forgiveness Program.
2. Be wary of unsolicited messages about unpaid tuition.
Some con artists contact graduates or their parents, claiming some of their tuition was left unpaid and 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 and demands money. Government agencies, as well as most higher education facilities, will contact you by mail. Don’t give in to pressure to make a decision or provide payment right away.
3. Do research before accepting jobs or job interviews.
Scammers may offer recent graduates high-paying, remote, and 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.” Shortly after a very brief interview process, they may offer you the job on the spot and 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 or your office equipment. In yet another version, you may be “accidentally” overpaid with a fake check and asked to send back the extra funds.
Read BBB’s tips on how to spot a job scam.
4. Is that really a graduation gift? Don’t accept every offer you come across.
Scammers often take advantage of graduation season by sending congratulatory messages that appear to offer free gifts, scholarships, or exclusive deals. These offers may come via email, text message, phone calls, or social media—and they can look like they’re from well-known companies, universities, or even friends.
To claim it, they’re asked to provide personal info or pay a shipping or processing fee. For more gifts and sweepstakes tips, see BBB’s scam study.
5. Moving soon? Know the signs of common moving scams.
It’s likely that you’ll be moving away from campus after graduating. Common moving scams involve no-show movers after paying a deposit, being charged for more money than you were quoted for, hidden extra fees, and even stolen items.
Read more about common moving scams and how to avoid them. Check with the BBB to find BBB Accredited movers near you. For more moving tips, like how to choose the best option for our move, see BBB’s Moving HQ.
6. Watch out for rental scams.
Did you find a gorgeous apartment in a trendy neighborhood at an affordable price? Take extra caution, because it could be a scam. In many cases, scammers copy the photo and description of a 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. Read more about renting an apartment and potential frauds from the Government of Canada.
If you want to rent a home or apartment, find out how much other rental properties in the area cost before signing a lease. 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.
Finally, read the lease agreement documents before you sign. Don’t be embarrassed to consult with friends or family members if you have doubts or questions. Read more tips from BBB about rental scams.
For more information:
Read more about scams targeting current college students.
Find more resources for younger adults, from car buying and homeownership to education and employment.
To learn more about scams and how to avoid them, visit BBB.org/AvoidScams.
