Thread by @roncaruthers

How to Spot a Scholarship Scam:

As the cost of college tuition continues to increase, so has the demand for scholarship money.

Now scam artists are preying on college students, and their parents, with phony scholarship offers that promise money, but only deliver debt.

Last year students lost more than $100 million to scholarship scams.

The Federal Trade Commission and the Department of Education have teamed up to fight this growing type of fraud.

In 2003, the FTC received 670 complaints of scholarship fraud.

In 2004, that number shot up to 4,486.

I wasn't able to find more recent data....sorry.. but I'm sure it's even worse now.

Here are seven ways to protect yourself:

1. Beware of identity theft.

1. Beware of identity theft.

Scammers will attempt to confirm your identity by trying to get your social security number, credit card number, or bank account information, and then, of course, charge like crazy or clean out your bank account.

2. Don't be folled by fees.

A legitimate scholarship agency will not charge a processing fee. Many scammers charge from $10 to $249. Some are just lotteries. They get thousands of parents to each send in, say, $100, and then they award 1 token scholarship, and pocket the rest.

3. High Pressure.

Be very careful about high pressure situations, since most scholarships are very competitive, a legitimate agency doesn't have to pressure anybody.

It's more common for scholarship agencies to fight students off.

4. Beware of "winning" a scholarship that you didn't apply for.

Or being a finalist in a contest that you didn't enter.

It's almost always a scam.

5. Beware of any company that 'guarantees' you to win a scholarship.

Many will just take the money and run.

NO ONE can guarantee the scholarship except the organization that is giving it out.

6. Watch out for them telling you "We'll do all the work for you."

Getting scholarships is a ton of work, and though a good service can weed out what not to waste time with, the student still has to do the work.

7. Many scammers will go out of their way to use official sounding names, like: "federal," "national," "education," or "foundation" to fool parents.

If you think you're the victim of a scholarship scam you should contact the following agencies:

1. Federal Trade Commission.

They have a special scholarship scam section and will respond quickly.

2. National Fraud Information Center. They will also follow up with the FTC and the State's attorney's office.

3. The States Attorney's Office.

'Fooled.'

Daggumit!