University students must remain vigilant as a new swindle emerges intending to defraud them of thousands.
As reported by ABC News 5 Cleveland, a lady revealed being a potential victim of a fraud aiming to penetrate her bank account to supposedly pardon her $10,000 student loan.
The fraudster contacted her via phone, suggesting she qualifies for a scheme that could reduce her student loan repayments.
“They proposed to write off $8,260, and all I’d have to repay is $1,080,” the unidentified lady disclosed to the local network. “It seemed appealing, considering you owe $10,000, it’s tempting to grab such an opportunity.”
The President of the United States, Joe Biden, offers insights on student debt cancellation at Culver City Julian Dixon Library on February 21, 2024, in Culver City, California. A fraudulent scheme targeted at borrowers has been trying to invade bank…
The President of the United States, Joe Biden, offers insights on student debt cancellation at Culver City Julian Dixon Library on February 21, 2024, in Culver City, California. A fraudulent scheme targeted at borrowers has been trying to invade bank accounts to loot money.
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The fraudster even exploited the situation to extract the lady’s debit card details, subsequently gaining potential access to her total account balance.
The lady was deceived because the caller possessed knowledge of her full identity and Social Security number. When she perceived the inconsistency in their story, she immediately requested a new card from her bank, consequently evading a potential account breach.
A financial advisor and the founder and CEO of 9i Capital Group, Kevin Thompson, highlighted that any trustworthy firm will never request your bank or personal details for pre-assistance matters.
“When a company insists on acquiring your bank or personal information before rendering help, it’s a red flag indicating the source is likely to be untrustworthy,” Thompson stated to Newsweek.
Lindsay Bryan-Podvin, the founder of Mind Money Balance, recommended students to always communicate directly with the specific department or bank to establish its authenticity.
“Should your student loan service provider call stating you qualify for forgiveness, take note of the program’s name, ask for their name and department, and hang up,” advised Bryan-Podvin to Newsweek. “Redial your loan service provider, or the one they claimed to represent and discuss the loan forgiveness application process and steps.”
Despite the urgency scam victims often feel to apply for debt forgiveness or secure their finances, pausing ensures you don’t land in a trap.
“These scammers capitalize on the disruption of your nervous system and the immense strain that student loans inflict on individuals,” stated Bryan-Podvin.
Any pledge of student loan forgiveness by an organization other than the FSA should be treated skeptically, and should be independently verified, according to experts.
“State entities and schools may indeed offer student loan forgiveness at certain levels, but this should be documented on an official state or school website and should involve that entity,” Alex Beene, a financial literacy teacher for the state of Tennessee, informed Newsweek.
“Even if you receive an email from an organization claiming association with a state or school entity, double-check with the institution. Scams have become more intricate, making it increasingly difficult to discern what’s real versus what’s fake.”
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Newsweek is fueled by challenging traditional viewpoints and identifying links in the quest for shared understanding.
Newsweek is fueled by challenging traditional viewpoints and identifying links in the quest for shared understanding.
