NatWest Student Living Index Uncovers Worrying Information On Student Fraud

Fraudsters are looking for more and more new methods to steal money, obtain personal data and payment cards details. Their victims are usually young people. Figures suggest that more than half of all students heading to university this September have been targeted by criminals in the previous year, with those going to university for the first time being most at risk.

According to the NatWest Student Living Index, which interviewed more than 3000 students, who were approximately halfway through their education, there was a sharp increase in students falling victim to fraud, aimed at stealing money from them.

What are the findings on student fraud from the NatWest report?

The worrying conclusions:

• 1 in 4 students encountered a bank scam in the past year aimed at stealing money directly from their bank account.

• The next most common scams are HRMC tax rebates and delivery service scams;

• Other common scams over the past year have revolved around investments (11%), third-party tuition payers (8%) and Visas (6%);

• 53% of students were targeted by scams;

• Students in Edinburgh, Cambridge and Coventry were the most likely to be targeted.

What are the most common student scams?

There are many different scamming methods, but there are some that are more common than others. Here we take a look at some of the most popular scams targeting young people and how you can protect yourself from them.

Occasionally, criminal groups are targeting students, particularly international students. Here are a few tell tale signs:

One of the most common are phishing scams, where fraudsters attempt to trick you into disclosing your personal or financial information by sending an email or text message that looks like it’s from a legitimate source - such as your bank. They may even go as far as setting up a fake website that looks identical to your bank’s, in order to steal your login details. Or perhaps they might fake the right safety certificates or bank's phone number in an attempt to fool you. Be vigilant when checking emails and texts claiming to be from your bank – if something doesn’t seem quite right, don’t click on any links and instead report it to your bank immediately.

Fraud, tricks and scams

Another popular scam is known as ‘vishing’, where fraudsters use the phone to try and trick you into disclosing your personal or financial information. They may claim to be from your bank, and say there’s been suspicious activity on your account, or that your card has been blocked. Again, they may try to direct you to a fake website in order to steal your login details or tempt you with money mulling. Be wary of any unsolicited calls purporting to be from your bank – if you have any doubts, hang up and call your bank using the number on their official website. Never give any bank account details, contact details, passport number, personal details, financial details or mobile phone numbers to anyone you don't know. If something seems to be too good to be true, then it probably is. There is no such thing as easy money, and it's likely to be some kind of criminal activity.

Another scam that students need to be aware of is ‘smishing’. This is where fraudsters send an SMS message purporting to be from your bank, in an attempt to trick you into disclosing your personal or financial information. They may claim there has been suspicious activity on your account, or that your card has been blocked. Again, they may try to direct you to a fake website in order to steal your login details. Be wary of any unsolicited text messages especially those that have spelling errors or grammatical mistakes, if you have any doubts, do not click on any links and instead report it to your bank immediately. Don't conduct any money transfers unless you are absolutely sure you can trust that business or organization.

One final scam students need to be aware of is ‘card skimming’. This is where fraudsters install devices on cash machines or point-of-sale terminals that capture the information stored on the magnetic strip of your debit or credit card. They may then use this information to create a clone of your card, send money, or use it to withdraw cash from your account or make purchases in your name. Be vigilant when using cash machines or paying for goods and services – if anything looks suspicious, do not use the machine or terminal and report it to your bank immediately.

Rental fraud

Also be of aware of rental fraud. Typically fraudsters offer you non-existent homes that are rented out to many clients at once. Always read tenancy agreements and never send any money without signing it first.

Investment scams

Investments scams are becoming increasingly frequent, with young people as the targets. Be very careful when considering any investment, especially if it is from a company you have never heard of. Make sure to do your research and talk to someone you trust before investing any money. Never make impulsive decision especially when you are offered discounts.

What to do to avoid falling victim?

Last year, scammers managed to steal £13bn from unsuspecting victims, as reported in the latest Fraud Report from UK Finance. The huge increase can be accredited to impersonation scams and authorized push payment (APP) fraud.

According to Ofcom, the communications regulator, 80% of people surveyed had received scam texts or phone calls from seemingly trustworthy organizations like banks, the NHS, and government departments. The most common people that fall for these are those in financial hardship.

As fraudsters become more skilful in using social media accounts and creating fake websites to impersonate utility services, students are being warned that they are especially susceptible to being scammed. They may also contact you as fake student loan companies.

There are a few simple steps that students can take to protect themselves and avoid scams, such as never sharing their personal or bank details with anyone they don't know and trust, and being extra vigilant when asked to transfer money.

Money laundering

Students looking to make quick money are often recruited into all sorts of activities that can end very badly for them. Be careful not to get caught up in money laundering or other illegal activities. You may be asked to receive money into your bank account and then transfer it into another one, keeping some money for yourself. Be careful with these suspicious offers.

Where to report if you were scammed?

If you receive a text message and you think is suspicious please do not click on any links and do not provide any of your personal details. You can report any dubious text messages to 7726.

You can report all scam calls to Action Fraud on 0300 123 2040 or by visiting their website at www.actionfraud.police.uk.

Scams affect all students

Fraudsters will often target students who are new to university life and may be living away from home or their home country for the first time, as they may be less aware of how to spot a scam. You can help fight scammers by informing your friends and family about their tactics, or even sharing screenshots on social media accounts. If you’ve been affected by a scam, you can also share your story with others to help raise awareness of the issue and prevent other people from experiencing what you did.

The best way to protect yourself from scammers is to be aware of their strategies and know how to spot a scam. By following the steps above, you can help keep yourself and your friends and family safe from criminals.

Remember - together we can beat the scammers!