Beware of These HigherEd Scams
Alice Whinnery
LFE's expanded BrighterU now includes 50+ HigherEd Videos to equip families with the skills to make smarter academic decisions & secure a brighter financial future. Request your FREE Access Code for clients today.
As parents and grandparents struggle to pay rising college tuition costs and other fees for college-bound students, predators are compounding the problem with misleading information, false promises, and hidden scams guaranteed to steal hundreds — or often thousands — from unsuspecting, trusting victims. Knowledge truly is power when it comes to avoiding predatory scams, so we hope you find learning more about the tactics scam artists are using helpful.
The following are just a few of the latest college and consumer scams noted throughout the 50 Video Lessons in our new BrighterU HigherEd Platform. Learning and understanding these ploys means you’ll be armed with the knowledge to recognize ... and then avoid them. While many of these financial traps affect consumers of all ages, here are just a few of the latest scams affecting thousands college-bound families today.
Financial Aid Scams
The changes in FAFSA for 2025-2026 academic year has students and parents understandably feeling the pressure to secure timely awards. Unfortunately, this has led to the emergence of scam websites that promise additional access to funds and free support, but their ultimate goal is to take advantage of unsuspecting financial aid applicants. It is crucial to be aware of such sites and only rely on credible sources ending in '.gov' for accurate information.
The FAFSA site (1) offers a wealth of resources, including information on eligibility criteria, application deadlines, and types of financial aid. It is free and there’s never a need to pay for assistance. Avoid clicking on links from unsolicited emails or social media posts that claim to provide assistance with FAFSA or offer more funds. These are often scams that can result in identity theft or financial loss.
New Tech Support Scams: They Want Your Savings
This is a scam warning from the FTC (2) that every student and parent needs to know. A warning pops up on your computer stating your computer has a virus and provides a help number to call. It often costs hundreds for the scammer to 'fix' the fake virus. Now scammers are upping the stakes — instead of hundreds of dollars, people are unknowingly handing over tens or even hundreds of thousands of dollars to tech support scammers.
Here's the new twist ... Instead of telling you there’s a virus, they now say someone hacked your bank, investment, or retirement account and is using it for fraud. To “help,” they transfer you to another scammer who pretends to be with a government agency (the FTC or the FBI) or the fraud department at your bank. The scammer says the only way to protect your money is to transfer it to a new account. The problem is the scammer controls that new account and quickly cleans it out.?
The FTC recommends:
Identity theft
ID theft continues to be a national problem, and Gen Z'ers are particularly vulnerable targets. Scammers often solicit students through emails, social media posts, and even creating fake college or high school websites to collect personal information. To avoid falling into this trap, it's important to password protect all your devices, don't click on links from unknown sources, and never give bank, credit card, or Social Security numbers to anyone other than your school, bank, or insurance company. While doctors and hospitals may ask for a Social Security number, since they are a prime target of hackers, it's always best to avoid providing it to them. (3)
Got a Package You Didn't Order? It's probably a Scam!
Scammers are sending people fake “luxury” items like rings, beauty products, and even Bluetooth speakers. This is sometimes called a “brushing scam,” so called because it’s “brushing up” — or increasing — the scammer’s sales. (4)
How does it work? Scammers or sellers of knock-off merchandise find your address or other personal information online. They send you goods you never ordered and use your information to write fake reviews about their products in your name — which helps them boost sales. This means someone likely has your personal information — and undoing the potential harm from identity theft could cost you time and money, so watch for these freebies.
Facebook Quizzes
Facebook Quiz Scams have been around awhile, but the Better Business Bureau cautions students to be wary of these seemingly harmless quizzes. These quizzes are designed to collect personal information that could be used to hack into your accounts or steal your identity. Questions like "What was the make of your first car?” “What is your mother's maiden name?" or "What was the name of the street you grew up on?" are commonly used as security questions for insurance, banking, and credit card accounts. By sharing this information, you could be putting your personal and financial information at risk. In today's digital age, one way to protect your personal information is to simply avoid these quizzes. You'll find more information on this and other Facebook Scams in the link below. (5)
Worthless ‘Diploma Mills’ Scams
The rise in alternative options to the traditional college track has led to an increase in a new predator: Diploma Mills. The Department of Education (DoE) recently estimated there are approximately 400 Diploma Mills operating in the USA, generating over $200 million annually. While there are many reputable for-profit colleges, trade, and career schools, these Diploma Mills prey on uninformed students by offering false promises of employment guarantees, higher salaries, and better job prospects. Unfortunately, many students who fall for these promises end up with no job prospects and a huge amount of debt … and many of these schools will sell their students’ personal information (their financial identity) to the highest bidder.
领英推荐
Most Diploma Mills are not accredited, which means that students won't be able to transfer their credits or use their diplomas to obtain an advanced degree. Therefore, it's essential to research and choose an accredited institution that offers quality education and job opportunities. The DoE site highlights these common warning signs (6):
An Important Fact: A degree from one of these schools could also disqualify students from obtaining Federal employment in the future. The government's?Office of Personnel Management?(OPM) (8) verifies the legitimacy of an applicant's degree, and according to the OPM, "There is no place in Federal employment for degrees or credentials from diploma mills."
Remember, most diploma mills offer college degrees that typically take years to complete, so if it sounds too easy or too good to be true, it’s probably a scam.
Stay Ahead of Scammers
To stay ahead of scammers in 2025, go to this FTC site. (8)
Being aware of the latest HigherEd and consumer scams can help provide peace of mind and will help build a brighter financial future.
About the Author:
Alice Whinnery, CEO of the LFE Institute and former CPA with PwC, has been a passionate advocate for Financial Wellness education and leading IT solution provider for more than two decades. After hearing thousands of problems from parents and grandparents of former college students, she worked with leading Financial and Academic Advisors nationally to create BrighterU. This new turn-key educational platform is specifically designed prevent costly HigherEd mistakes, highlight alternatives to college, and avoid roadblocks to retirement by providing essential content missing on college sites and Financial Wellness Programs today. The objectives is to help both students - and the parents and grandparents who support them - build a brighter financial future through education.
Resources:
(7) OPM.gov
?