In the new academic year, it is important to address the issue of payment fraud, as we all like to believe that fraud is something that happens to others until it happens to us. Across regions, there has been an uptick in fraud over the past few years. Criminals often target students like yourselves by offering to help transfer or exchange money internationally or by providing substantial discounts, gifts, or commissions.
Fraudsters can impersonate various individuals and organizations, such as officials from your university or college, the Home Office, education agents, national advisory bodies, or even a senior student from the same university. The claims come in various forms, including fraudulent phone calls, social media posts, direct messaging, or emails. These criminals could be a part of larger crime organizations involved in money laundering, which is a serious offense that can have severe consequences for you and your institution.
It is important for you to send your funds through a trusted platform (like Convera) and protect your funds, that are often at risk when you choose to pay someone in cash or transfer money through a third-party agent or network.
Types of payment scams
Let’s look at some common types of fraud targeting students:
Tuition payment fraud
This involves individuals or agents offering to pay a student’s higher education fees on their behalf, either in exchange for an upfront payment or as soon as “proof” of payment is provided to the education institution. Usually, the person or agent uses stolen debit or credit card details, logging in on behalf of the student and making the payment. The unauthorized card transaction will eventually be reversed, leaving the tuition unpaid. By this time, the person or agent will have disappeared with the upfront payment, leaving the student with unpaid tuition.
Fraudulent universities
Fraudsters may create websites and social media profiles for fake universities to defraud prospective students. Beyond the website and social media, there is no actual university, courses, staff, or campus. Governments have noted that this trend has increased due to the prevalence of online learning in a post-pandemic world and the ease with which a seemingly legitimate website can be created.
Money muling
The ‘money mule’ fraud involves offering students payment in exchange for temporarily receiving money into their bank account and then withdrawing and handing over the cash or transferring it elsewhere. Potential scammers target students who are short on cash and may be tempted by offers to make ‘easy money’.
Student loan phishing fraud
Student loan fraud targets borrowers who are struggling to repay their federal college loans or are looking for loan forgiveness or refinancing options. Fraudsters often target students with bogus emails and messages around the loan instalments periods.
Rental or accommodation fraud
In this type of fraud, students searching for rental properties are asked to pay a fee or a deposit in advance without viewing the property. It could be that the property does not exist or is not available for rent. Reports state that millions of dollars are lost to rental fraud each year.
The ‘virtual kidnapping’ fraud
This involves someone pretending to be from the Embassy of the student’s home country, attempting to scare them into believing they are implicated in a serious crime. They are encouraged not to tell anyone and to cut off all contact with their family, essentially kidnapping themselves. Scammers extort money from the family and the student.
International visa, fake Home Office, fake police, and fake bank fraud
Fake police, home officials, or other officials contact the student and claim there is a visa-related or similar problem that requires the transfer of money or payment of a fine to avoid deportation. Another fraud involves fake police demanding a student share their bank account or personal details to prove their innocence regarding unpaid taxes, suspicious activity in their account, or a hacked account.
Forms of card payment fraud
Most scams involve some form of theft, whether it’s identity theft or the loss of debit or credit card details. Here are three forms of card payment fraud you should be aware of:
Phishing scam: a term used to describe sending communications (emails, texts, and instant messages) with a link that takes you to a fake website designed to steal personal and identifier information. To identify a phishing scam, look for strange-looking senders disguised to look legitimate, impersonal greetings like “Dear Customer” or your email address, and investigate beyond just the title or body of an email to ensure the email address and domain are as expected.
Card payment scams: this type of fraud involves the unauthorised use of your credit or debit card data (card number, billing address, security code, and expiration date) to purchase products and services in a non-face-to-face setting, such as e-commerce websites or over the phone. Such attacks often use compromised card details obtained through phishing scams.
Impersonation scams: also known as authorized push payment or bank transfer scams, impersonation scams occur when victims are tricked into making money transfers to an account posing as a legitimate payee. Another level of impersonation fraud occurs when fraudsters use victim details to apply for financed goods, services, or financial products. Such details can be obtained through phishing attacks or social engineering.
Tips to protect yourself from fraudsters
By following these practical tips, you can enhance your financial security and reduce the risk of falling victim to fraudsters:
Reach out to your university for safe payment methods: Pay tuition fees directly to the university through their approved payment method and partner. Avoid using third-party intermediaries. Never pay tuition fees in cash to individuals that you do not know or have only interacted with through social media. Payments made to third party intermediaries or in cash are much less likely to be recovered in the event of fraud.
Beware of too-good-to-be-true deals: If an offer or inducement seems too good to be true, it probably is. Disregard offers of discounted exchange rates and be wary of unsolicited offers promising easy money.
Avoid offers on social media: Exercise caution when encountering offers on social media platforms such as Facebook, Instagram, WeChat, or any other channel. Do not share your personal details with anyone on such platforms.
Don’t succumb to urgency: Criminals often create a sense of urgency to pressure you into making immediate payments or sharing personal information. Beware of messages that threaten account closure or offer limited-time discounts. Take your time to verify the authenticity of such messages; don’t be afraid to ask questions; and avoid being rushed into making hasty decisions.
Educate yourself on scams and safe fund transfers: Learn more about tuition fee and refund scams, money laundering, secure websites, and phishing or smishing attempts. Be vigilant and cautious, especially around the new academic season.
Save proof of every transaction, conversation, and interaction: Keep a record of every transaction, conversation, and interaction related to your studies and payments. This includes payment receipts, email correspondences, and messages exchanged on university platforms or social media.
Keep your bank account details private: Never share your bank account details, credit or debit card information with anyone. Legitimate entities will not request such sensitive information through calls, emails, or social media messages. Treat any such request as a potential red flag.
Protect your personal information: Safeguard your personal information, including your university number, email address, phone number, and login details. Refrain from sharing this information with unknown individuals or entities, particularly through phone calls, emails, postal mail, or social media platforms.
Implement additional security measures: Whenever possible, use two-factor authentication for your online accounts. Register for telephone preference services to minimize unsolicited calls from potential scammers.
Report suspicious activity promptly: If you come across any suspicious contacts, messages, or offers, report them to the appropriate authorities immediately. Reach out to your university, local law enforcement agencies, or fraud reporting organizations to ensure swift action against potential scammers and to seek assistance in retrieving your funds
Key questions to ask yourself
Scammers are becoming increasingly sophisticated and employ a variety of methods to steal your funds. Here is a list of questions to ask yourself before you make a transaction. If you are suspicious of any contact, always use official phone numbers, online accounts, and official communication channels to verify the details.
- Is someone asking you for your personal, confidential, or security information?
- Are you being forced to take an immediate decision?
- Does the text or email you received contain poor spelling, grammar, or formatting?
- Has someone contacted you unexpectedly?
- Does the offer sound too good to be true?
- Have you been asked to keep quiet about something?
- Have any contact details been provided? If so, are there mobile or cell numbers or PO Boxes?
- Does it encourage you to click on a website link in an SMS or email from an unknown sender?
- Does it ask you to reply or verify your account or information?
Please report to your local law enforcement agency immediately if you think you have been defrauded. Inform your institution at the earliest. If you or a loved one have paid your fees via Convera’s GlobalPay for Students platform and need support related to a scam, please contact us at https://students.convera.com/#!/contacts. Remember, staying informed and vigilant is crucial to safeguarding your finances as a student.
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