Increasing numbers of university students are being scammed through a combination of rent fraud and fake side-hustle jobs offered on social media sites, according to leading fraud recovery lawyers. However, the law firm says that new rules mean its easier than ever for students to successfully reclaim scam money from banks.
National Fraud Helpline solicitors say they have seen an increase in rent fraud and fake jobs in the past six months and that students are a regular target for scammers. The no win, no fee scam recovery specialists says that it is also aware that many students, particularly international students, are often too embarrassed to claim back the money.
Martin Richardson, senior partner at National Fraud Helpline solicitors, said: ‘As the number of frauds in the UK rise, the number of students falling foul to scammers also goes up. Fraudsters target potential victims when there is desperation. In the case of students this desperation is often seen in their desire to get good quality and good value rented accommodation as well as hard-up university and college students needing extra money. With rental fraud, students are often being asked to pay a full year’s lease money in advance in exchange for a discount only to find that the fake landlord disappears.’
‘Students are also targeted with sophisticated fake side-hustle jobs that are often advertised on Instagram, TikTok, Facebook or via WhatsApp. The victim will think they’ve earned money- typically by reviewing products- but the scammer then demands money to be deposited for “wages” to be released. Inevitably, the student never receives any money. Scammers are aware when students have a lump sum through loans, parental money or maintenance grants and this is a time when they seem to push particular scams such a rent fraud.’
There are no accurate national figures for how many students are scammed each year and how much is lost through fraud. However, it is estimated that tens of thousands of students fall victim to scams each year. The fact that students spend a lot of time on social media is also believed to make them more vulnerable to becoming a fraud victim.
New rules introduced by the Payments Systems Regulator from October 7, last year, obliges payment service providers, including banks, to refund victims of fraud unless they have been ‘grossly negligent’. National Fraud Helpline solicitors says more needs to be done to make students understand that there’s a good chance they can recover money lost to fraud. Mr Richardson said: ‘The students we speak to seem to be particularly ashamed that they have fallen victim to a scam but they really shouldn’t. Fraud is increasingly sophisticated and anyone can fall foul of a fraudster. We know of students not telling friends or family they are fraud victims and instead just taking on additional work to make up the losses. The good news is that if you do lose money through a scam there’s a good chance it can be recovered.’
There are certain scams targeted at students to look out for.
- Student Loans Company scams
When students start university or college the Student Loans Company (SLC) and Student Finance England (SFE) play a key role in financing their education. However, both of these institutions are very unfamiliar for new students which gives fraudsters the chance to take advantage.
The SLC has warned that scammers claiming to be from ‘SLC Investigations’ has emailed students telling them that they should expect a call from a withheld number to verify their payment details. In fact, the SLC never proactively contacts students to verify bank details ahead of a payment date. This is a classic impersonation scam, and rather than accepting a call students should log in their online account to see if they have any messages.
- Fake tuition fee discounts
This involves a fake discount offer for students willing to pay their university tuition fees early. The offer doesn’t exist but it allows scammers to con thousands of pounds from students. Fraudsters pretending to be from a university will typically offer a 15% discount if students pay the money early. This cruel scam will often leave students unable to afford the course that they have signed up to.
- Student accommodation scams
Rental fraud is a huge problem in the UK as demand for properties continues to outstrip supply. Students are often targeted by fake landlords looking to take advantage of their desperation for good value accommodation. Very often they will offer a discount for the rent being paid upfront as they try and take as much money from the student as possible. Students should ignore social media adverts offering accommodation. Even if you go through a trusted platform such as Rightmove you need to make extra checks.
- Job scams
Many students are looking for ‘side hustles’ to earn money while they are at university or college. Never answer random job offers that appear through social media platforms such as WhatsApp, as very often these fake jobs involve asking students to review products and services in return for a wage. Once you are owed money the scammer will demand funds to be paid to them to release the wages. This can go on for weeks as scammers demand more money and the victim starts to chase their losses.
It’s important to remain vigilant against scams such as these, and if you do happen to fall for one, ask for help and remember you’re not alone in this issue.