Detecting Scholarship Scams

Each year there seems to be a new scholarship scam aimed toward college students and their parents.

SDSU’s Office of Financial Aid and Scholarships has become aware of a recent potential fraud scheme involving persons who are contacting students and telling them that they have won a scholarship or grant.  To get the money, the student is instructed to give their bank account number so that the money can be directly deposited.  They also tell the student that there will be a one-time processing fee charged as well as a membership fee to remain eligible for the funds each year.  Students and parents should never provide bank account or credit card information as a result of such a request.

Is it a scam?

• If you’re asked to pay a membership fee or application processing charge, it might be a scam.
• If they guarantee that you’ll win a scholarship, it might be a scam.
• If you’re suspicious and it sounds too good to be true, it probably is.
  
  

If you have been a victim of this or a similar scam, you should take the following action:

1. Contact your bank, explain the situation, and request that the bank monitor or close the compromised account.
2. Report the fraud to the Department of Education’s Office of Inspector General hotline at 800-MIS-USED (800-647-8733) or www.ed.gov/misused.  Special agents in the Office of Inspector General investigate fraud involving federal education dollars.
3. Report the fraud to the Federal Trade Commission (FTC) at 877-FTC-HELP (877-382-4357; teletype for the hearing impaired; 866-653-4261).  The FTC will investigate if the fraud is deemed widespread.  Therefore, it is important that every student contacted by the individual(s) in question submit a complaint.

Always remember that applying for federal financial aid and university and private scholarships is free. Students and parents who need help filling out their Free Application for Federal Student Aid (FAFSA) are always welcome to contact the Office of Financial Aid and Scholarships for assistance.

For more information about how to apply for financial aid, visit the Office of Financial Aid and Scholarships Web site.

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