Carly and Scott are targets Lesson 6: Scams Targeting Students

Meet Scott and Carly Scott and Carly attend college. Because they are students, they are the likely targets of scams.

Why target students? Less financial experience Eager to get a good deal

Let’s explore some of the scams Scott and Carly experience while away at college.

Scott spots the fake check scam Scammer sent Scott a realistic check that turned out to be fake Scott also found out to never wire transfer money to a stranger He learned to be leery of checks written for a high amount with the sender requesting money be sent back

Scammer promised Carly she could make thousands of dollars by working or running a business. Carly paid a lot of money to get materials and training for the “job.” In the end, Carly had spent a lot of money and did not earn the money back. Carly falls for a job opportunity scam

Video: From the Federal Trade Commission 4N9z21U7o 4N9z21U7o

Along with many classmates, Scott and Carly entered an online contest. A week later, they received notices they had “won” They completed a form which required personal information, including their Social Security numbers Instead of delivering a prize, scammers used personal info to commit identity theft Scott and Carly fall for a personal information ploy

Scammer asked Scott for advance fees in exchange for a phony scholarship  Most legitimate services won’t charge fees Scott gets exposed to scholarship scams

Scott was also cautious when he attended a scholarship seminar that ended with a sales pitch

Video: From the Ohio Attorney General’s Office’s 2012 Take Action Video Contest, 3 rd place 9I4 9I4

– Scammers promise “free” trips, “bargain” airfares, etc. – Often come with other conditions, restrictions, hidden costs, and obligations Carly is cautious to avoid spring break scams

Top Signs of a Scam Someone you don’t know requests personal info. You win a “contest” that you never entered. You’re pressured to “act now!” You must pay to receive a “prize” Someone requests a large down payment.

Top Signs of a Scam You’re asked to send money via wire transfer or prepaid card. You are overpaid for an item you sell online. The company refuses to provide written info. The company has no physical address. The company insists you pay in cash.

Review Questions What are some signs of a scam? Why are students targeted by scammers?

A Short Quiz! 1. List three types of scams that target students. 2. You were offered a job as a secret shopper but first you have to pay $250 for a special training. This is a typical business practice and you should pay for the training. True or False?

Quiz (cont.) 3. To locate good college scholarships, sometimes you have to pay upfront fees: True or False? 4. A representative for a cruise company tells you and your friends that you should buy tickets for a spring break cruise as soon as possible or else you’ll miss out on a bunch of special offers. What are some red flags in this scenario? a - Companies are not allowed to tell students about travel opportunities. b - The representative should not be pressuring the students to buy now. c - The representative may not be disclosing all of the information concerning the special offers. d - Both b and c