How To Avoid A Scholarship Scam

On today’s topic of discussion, i have carefully written a guide on how to avoid a Scholarship Scam, so you don’t make mistakes people make okay! Though there are so many scholarships out there on the internet, many are real and genuine and many are also a way of getting away with your money, we call it scholarship fraud.

The Signs of a Scholarship Scam – What to Look Out For?

The below information will guide you on how to avoid a Scholarship Scam. the following are some of the most often encountered components of academic fraud. Check it out.

  • #1: There is a fee associated with this.

There is a price associated with this service, so plan accordingly. In order to be successful, the vast majority of scholarship scams require some type of monetary recompense. Others, such as well-known scholarships, may require only a small and reasonable fee, such as an application fee, processing fee, or taxes, whilst others, such as well-known scholarships, may not.

  • #2: Inquire about your credit card information.

An rare piece of information is sought after….. It is best not to apply for scholarships that need you to disclose your credit card information or Social Security number. It is not required that you supply your credit card information in order to authenticate your identification or to preserve your scholarship eligibility. It is not necessary for scholarship providers to report scholarships to the Internal Revenue Service unless the scholarship includes the payment of a fee for services.

  • #3: Inquire about your banking information.

It requests the account number associated with your bank account. Despite the fact that it looks to be innocent at first glance, a scam artist can empty your bank account by utilizing nothing more than your bank account number and routing information to commit fraud. They have the potential to remove money from your account without your signature if they give you a demand draft.

  • #4: Congratulates you on your scholarship win, even though you did not apply for it.

Even though you did not apply for a scholarship, you are informed that you have been given one by email. An extensive number of students have been fooled by a scholarship scam in which they were sent a letter congratulating them on getting a scholarship but were then asked to pay the application fee, which was never collected by the scammers.

  • #5: Claims to be a charitable organization.

It makes representations that it is a foundation or a tax-exempt organization when it is neither of these things. When determining whether or not a certain organization is a charity foundation, you can use the Exempt Organizations Select Check tool, formerly known as IRS Publication 78 (formerly known as IRS Publication 78).

It is likely that you will get your scholarship money through the ordinary mail. It is not necessary to send them a check to make up for the gap if it looks that they have “overpaid.” If you deposit the scholarship check, it may look to be genuine, but it is in fact a fake that will not clear. If your check bounces, your bank will almost certainly charge you a fee, so be sure you plan ahead of time. Typographical and grammatical faults are typical when it comes to scholarship fraud.

For their postal address, they may choose to use a post office box or an automated mail collection service. The majority of the time, they do not have phone numbers. There are a couple of other red indicators that suggest a fraudulent scholarship matching service, keep reading to discover more things to note on how to avoid a Scholarship Scam.

  • #6: Promising Money-back guarantee & 100 percent satisfaction.

It offers a 30-day money-back guarantee on all of its products. Nobody can assure you that you will be given a scholarship in your field of interest!

  • #7: Scholarship information is withheld.

It claims that it has unrestricted access to scholarship opportunities and that this is true. It is said that this information is not available anywhere else and that scholarship matching services are the only source for it. When it comes to scholarships, why would a scholarship provider wish to withhold the facts of their awards from the general public?

  • #8: A High Rate of Success Proofs (FAKE)

A high rate of success is something that it is quite proud of. The scholarship matching companies may claim that a large percentage of their clients win scholarships as compensation for the amount you paid for the matching service. A private scholarship, on the other hand, is awarded to around one out of every eight students, with the average reward amounting to less than $4,000 per student.

According to the findings of the survey, hundreds of thousands or even millions of dollars in scholarships went unclaimed in the previous calendar year, according to the report. For decades, people have believed in the concept of “unclaimed help,” despite the fact that it is still just as fictitious now as it was 40 years ago. The majority of scholarships receive more applications than there are funds available to offer them, thus they have to turn down some applicants. The few scholarships that go unclaimed are unable to be claimed by anyone else because of the high criteria they have set for themselves.

  • #9: There is more concern about your compliance.

Essentially, it creates the illusion of a fake sensation of imminent disaster. In spite of the fact that scholarship applications must be submitted by certain dates, scholarships are not awarded on the basis of “first come, first served.”

  • #10: False Claims of Affiliated Organizations

Here is the number 10 aspects of how to avoid a Scholarship Scam. They claim that they have gained approval from a respectable institution in this regard. Some scammers will fraudulently claim to be affiliated with the United States Department of Education or another legitimate agency when they are in fact unaffiliated with any such organization. Although it is prohibited by law, the federal government may not endorse private firms.

Keep an open mind if you are offered free assistance or a lecture, or if you are given the option to speak with someone over the telephone. I believe they are both high-pressure sales pitches for a specific product or service, based on what I’ve seen so far.

For example, a student may pay a fee up front to obtain a student loan, refinance a student loan, change repayment plans, postpone payments, or be eligible for debt forgiveness if he or she has committed advance-fee fraud.

When it Comes to Scholarship Scams, What are the Things To Note?

Don’t apply for a scholarship if you have to pay a fee. There are no costs associated with genuine scholarships. Use a free scholarship matching site, such as Cappex Scholarships, to find scholarships that don’t demand an application fee or any other form of charge to be paid up front.

It was necessary for Cappex to conduct a thorough verification of all scholarships before include them in our database. In general, trust your gut and go with your gut. Be wary of any scholarship that appears to be too genuine. Before submitting an application, enlist the help of those who are more knowledgeable.

What to Do Not To Be A Victim of Scholarship Scam?

If you become aware of scholarship fraud, please contact the appropriate law enforcement agency listed below. It will help you and others not to fall victim as well. See the hotline below and make use of it as soon as possible

  • 1-800-654-7060 or
  • visit www.fraud.org

NOTE: National Fraud Information Center (NFIC) is responsible for all your complaints and their numbers are given above.

Through the National Fraud Information Center, this data is shared with the Federal Trade Commission (FTC) and state attorneys general (NFIC). Call the below phone number:

  • 1-877-FTC-HELP (toll-free)
  • 1-877-382-4357
  • 1-877-382-4357

The Federal Trade Commission (FTC) published a publication and submitted an annual report to Congress as part of its ongoing investigation into scholarship and financial assistance fraud.

Postal fraud, which includes mail frauds, is investigated by the United States Postal Inspection Service (USPIS). See the below telephone numbers and diall up for complaints:

  • C 1-877-876-2455 Or
  • 1-800-654-8896 (in the United States).

Report fraud involving federal student loan funding, such as FAFSA fraud rings, to the Department of Education’s Office of Inspector General by contacting 1-800-MIS-USED (1-800-647-8733) or by using the OIG Hotline.

That’s how far we can go on how to avoid a Scholarship Scam. I hope you have been informed. See you soon on our next article. Do feel free to share. We want to believe your search has been fullfiled.

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