Virtual criminals are a very real threat for freshers but there are steps new students can take to protect themselves.
The start of university can be a challenging and unsettling time for new students as they face new challenges in a new environment and get to grips with a new found freedom that brings opportunities and also risks.
For criminals looking to exploit people for their own gain, that makes new students a prime target.
And with thousands of new students settling into university life, experts have warned them to be extra vigilant as scammers look to target them for their money and their personal details.
Many freshers start off with a healthy bank account thanks to student loans and maintenance grants. They might also have new student accounts offering large overdrafts and credit cards with sizable limits - all services designed to help make life easier for students but all seen as an open invitation by scammers.
“New students can find they have access to a reasonable amount of money before it gets spent on things,” said John Webb, Head of Consumer Affairs at Experian.
“They will often hit university with, potentially, a reasonable sized overdraft and possibly a new student credit card, and anything with a credit limit is an opportunity to a fraudster. So they will try to get log-in details, card details, anything that will allow them to get at those funds.”
Scams can come directly through emails, cold calls, text messages or be set up on social media sites and online marketplaces, but the red flags to watch out for are generally the same - anything that seems like an unbelievable bargain, anything that promises easy money and anything urging you to immediately take action now
Students might be expected to be a bit more tech savvy and less likely to fall victim to scams. But in fact the data shows they face a higher risk because of their lifestyle, because they might not be as wary as their parents' generation and because they often have an urgent need for things like accommodation and work.
“Yes the younger generation are far more tech savvy, but they are also far more willing to share information online, which is a huge opportunity for scammers,” said John.
“What we see is generally data suggests the older generation are more cautious online - more cautious with passwords, more cautious with sharing information. Students are far less cautious around sharing pictures of themselves or of letters that might have a lot of personal information.
“Trawling through social media is an extremely good way to farm personal information, and my guidance for anyone, not just students, would be avoid posting anything personal online - any private details, posting your mother's maiden name - which is a common bank security question - when you’re on holiday, your home address. All these things just present more risk.”
New data from Experian shows that last year 145,000 18-19-year-olds opened their first Buy Now, Pay Later account in September and October alone, while 101,000 opened their first credit card and 103,000 accessed an overdraft.
And a major concern is that students who are scammed out of money might put off reporting it to anyone out of shame and regret - something that can be magnified by the fact they are often away from home for the first time and feeling more isolated.
John said that they needed to be aware help was available - and that reporting it was the best thing they could do.
“We find there is definitely a certain stigma to being scammed, but I would urge people to think about the sophistication of scammers - it can happen to anyone,” he said.
“The first thing to do is to contact people and get the help you need immediately. Your bank can put a block on affected cards or get them cancelled, and they will be able to start the process, if you have been scammed out of money, on how you get it refunded. It’s the same for credit cards and savings - if you’ve lost that to a scammer there is protection banks can offer you.
“The other thing to do is keep an eye on your free credit report and score. If you watch closely then any sudden changes will be spotted quickly. Most scams involve fraudsters stealing your information which leaves you more likely to be a victim of ID fraud. They will start applying for credit in your name.
“The key thing is don’t panic - there’s good protection from banks and lenders. There’s a knee-jerk reaction when you have been scammed to do certain things, especially if you are left unable to pay for urgent costs like housing deposits, bills or food, that can just get people into more trouble. Again, banks are pretty good at offering support, so contact them as soon as you can.”
Three common scams targeting students
Money Mules
“Students are hugely at risk of being targeted to act as money mules with the promise of earning very quick money if they let fraudsters transfer money in and out of their bank account.
“It’s a serious concern, as it leads to a huge amount of difficulty opening up new credit in future for a mortgage or car finance. It is also illegal so there is a risk of prosecution.
“But for students who need money it can be very attractive and can outweigh the thought process of ‘I should not be doing this’.”
Marketplace scams
“This is a particular risk to students who need things like laptops, books, furniture or things like tickets to gigs. Scammers will post fake listings on social media sites or online marketplace sites, primarily just to encourage people to share their details. So you lose money, you don’t get the product and the scammers have information about you.
“If you pay by paypal or credit card there is an extra level or protection but most scammers will try and get you to transfer the money to an account.
“The big problem is that you don’t just lose the immediate money you have spent on something - you’re giving away card details, bank details, name, address, date of birth, all the info fraudsters need.”
Accommodation Scams
“This is something that is more common in places like Edinburgh or Glasgow where there is a real shortage of housing, and that desperation to find somewhere - particularly students who need somewhere for the start of term - makes them a target.
“They will typically set up a fake website that looks like student lets - it's easy to put up fake properties and images and then get other people involved using third-party sites like marketplaces or Gumtree listings. Many then push for a deposit before you have even seen the property so you end up losing quite a large amount of money, you’ve lost personal details you still need somewhere to live and you need to find more money for a deposit which can make you desperate.
“So never pay a deposit on somewhere you haven’t seen, and anywhere that looks too good to be true probably is!”