Scammers can turn just about any situation into an opportunity for fraud. According to the Federal Trade Commission (FTC), here are two of the latest scams to watch for: Student Loan Forgiveness scams and Investment Opportunity scams.
Student Loan Forgiveness Scams
Recently, the Federal Trade Commission (FTC) took action against USA Student Debt Relief (USASDR) for deceiving borrowers with promises of student loan forgiveness plans. USASDR targeted borrowers in Puerto Rico, pretending to be affiliated with the Department of Education and offering fake loan forgiveness plans with unrealistically low payments. Then they pocketed the payments rather than sending them in to the lenders.
Here’s how to protect yourself:
- Verify Legitimacy. Scammers often claim affiliation with the Department of Education. Always verify that you’re dealing with a legitimate federal student loan servicer listed on the Department of Education’s official website. Use the contact information listed there to avoid spoofed numbers.
- Protect Your FSA ID. Never share your Federal Student Aid (FSA) ID login information. Scammers can use this to hijack your loan servicer access or steal your identity.
- Understand Contracts. Never sign contracts in a language you don’t understand. Insist on clarity about what you’re paying for before committing to any financial service.
- Free Legitimate Resources. For managing federal loans, visit StudentAid.gov/repay. For private loans, contact your loan servicer directly.
Investment Scams
Investment scams are another prevalent threat, promising big returns when you invest in a new money-making opportunity. If it sounds too good to be true, it probably is. These types of scams have cost victims billions of dollars in 2023. Protect yourself with these tips:
- Research Thoroughly. Before investing, search online for reviews, complaints, or scams associated with the company or program. Visit Investor.gov for guidance from the U.S. Securities and Exchange Commission (SEC) or contact one of our investment officers at First National Bank of Mount Dora.
- Verify Claims. Don’t trust investment opportunities solely based on claims of success. Verify independently before committing any funds.
- Assess Risks. All investments carry risks. Avoid anyone who downplays risks or rushes you into a decision. Understand the risks involved before investing.
General Tips to Stay Safe
Slow Down. Scammers often pressure you to act quickly. Take your time to research and verify before making any financial decisions.
Educate Yourself. Stay informed about common scams and tactics used by fraudsters. You can always review our blog and security pages for more information.
Report Suspicious Activity. If you suspect you’ve encountered a scam, report it to the FTC at FTC.gov/complaint.
By staying vigilant and informed, you can protect yourself from falling victim to financial scams. Remember, legitimate financial services will never pressure you into hasty decisions or ask for sensitive information without proper verification. Stay safe and secure your financial future wisely.