As this year’s college graduates grab their diploma and start a new chapter in their lives, there are several important decisions to navigate. Whether it’s finding a new place to live, searching for a new job or securing credit cards, it’s important for graduates to do their homework to avoid fraud.
BBB offers the following tips to 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. They’ll ask you to fill out a form and pay an up-front fee to use the company’s services.
While some of these companies are real, they will likely 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. Students usually can apply for assistance programs on their own, making it unnecessary to pay a third party.
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.
The US Department of Education offers helpful information about student debt at studentaid.gov.
— 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. These scammers are hoping this will prompt quick action and may ask you to send money via wire transfer or prepaid debit cards. These are signs of a scam that will steal your money and leave no paper trail.
Whether you’re 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. Find the correct website for your college to retrieve the number for your school’s bursar’s office so you can verify with them if there’s any outstanding issues.
— Do research before accepting jobs or job interviews. Scammers will target recent graduates with claims of having high-paying, easy, entry-level jobs. They’ll lure 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 reality, they’ll use this information to steal your identity and money.
In other cases, scammers might charge you to pay for training or pull you into a fake check scam. You receive a check and are told that you were “accidentally” overpaid and need to send back extra funds, or you might be told to send money to a third party for supplies, but once your bank determines the check is fake, they’ll expect you to return all of the 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. If you think you’re about to be interviewed by a well-known, reputable business, take the time to confirm this by calling them at the number you’ve verified to be authentic. Be wary of anyone who hires you on the spot from a virtual meeting, especially for a high-paying job that should require experience.
— Watch out for rental scams. 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.
— Be on the lookout for fake credit cards. Offers to apply for the first credit card are tempting to many students. Not only could this create credit problems down the road due to unchecked spending, but some deals could be phony offers designed to access personal information. Research the offers from the credit card flyers and the banking institutions before applying.
Michele Mason is president of the Better Business Bureau in Chattanooga.
Staff photo / Chattanooga Better Business Bureau President Michele Mason