Student’s Guide to

Fraud Scams

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 Students Guide to
Fraud Scams

Table of Contents

Types of Scams

1 Cracking Cards Page 3

2 Student Tax Scams Page 4-5

3 Tech Support Scams Page 6-7

4 Student Loan/Scholarship Scams Page 8-9

5 Identity Theft Page 10

6 Behavior Blackmail Scam Page 11

7 Roommate Rental Scam Page 12

8 PayPal Scam Page 13

9 Reshipping Scam Page 14

10 Ride Share Scams Page 15-16

11 Fraud Prevention Tips Page 17-18

12 Fraud Prevention Resources/Acknowledgments Page 19

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1. Crackin’ Cards – aka Card Cracking
What is Card Cracking?

A student opens a new account at a bank,

generally with a low dollar amount ($10-$25). The
student then provides their ATM card and PIN
number to a third party. The third party then
deposits stolen or counterfeit checks into the
account and makes withdrawals prior to the checks
being returned as bogus. The student is instructed
to tell bank officials they lost their debit card. If
questioned how the fraudster obtained the PIN, the
student is instructed to inform bank officials they
wrote the PIN on a piece of tape and attached it to the back of the card.

Card Cracking Recruitment

Recruiters often resort to social media to recruit students for Card Cracking with the
promise of quick money. Here are some examples from social media accounts:

Prevention Tips
 Never share your debit card or
PIN with anyone.
 Never deposit a check or money
order from an unknown source
into your account.
 Don’t be a party to a criminal
scheme. It’s illegal to defraud a
bank.

In recent investigations criminal

charges have been brought against
students for conspiracy and larceny.

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2. Student Tax Scams
For several years, IRS scams have been affecting
individuals across the United States. Tax scams tend
to increase around tax season, but recently fraudsters
are running this scam year-round. There are a couple
different types of “tax” scams. In one scenario, the
student is contacted, usually via telephone or email,
and told they have not paid their student tax. They are
instructed to wire the unpaid taxes to a designated
account. The student tax is usually a nominal fee,
often less than $100.00.

In another scenario, the fraudster informs the student they have a legal order pending
against them for unpaid taxes. Payment is required or they will be arrested. The scam
works like this:

 The student receives a phone call from a phone number that appears to have an
area code around Washington DC. Below is a transcribed voicemail from an
actual fraudster:

“I am **** and I am calling regarding an enforcement action executed by US

Treasury, intending your serious attention. Ignoring this will be an intentional second
attempt to avoid initial appearance before a magistrate judge or a grand jury for a
federal criminal offense. My number is (***) ***-****. I repeat (***) ***-****). I advise
you to cooperate with us and help us help you. Thank you.”

 When the student calls the phone number, the fraudster answers the phone,
“Internal Revenue Service”. The fraudster sometimes uses threatening language
to get the student to cooperate. The student is told the money needs to be paid
immediately. Students are threatened with arrest and possible deportation.

 The scammer will inform the student they can pay their taxes by either
purchasing gift cards, completing a wire transfer or by sending cash.

 Some students are convinced to pay the unpaid taxes with cards, such as
iTunes, Green Dot, Google Pay and Steam cards. The fraudster requests the
student provide them with the numbers printed on the back of the card. This
expedites the scam.

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Prevention Tips
 Some colleges and universities assign enrolled students a student fee (Tax). Before
paying the fee, verify the fee is legit at the Bursars Office.

 The IRS does not initiate contact with taxpayers by email, text messages or social
media channels to request personal or financial information. The IRS initiates most
contact through regular mail delivered by the United States Postal Service.

 The IRS will never call you and demand immediate payment using a specific
payment method such as a prepaid debit card, gift card or wire transfer.

 The IRS will never threaten to bring in local police, immigration officers or other law-
enforcement to have you arrested for not paying. The IRS also cannot revoke your
driver’s license, business licenses or immigration status. Threats like these are
common tactics scam artists use to trick victims into buying into their schemes.

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3. Tech Support Scams
The fraudster contacts the student to offer technical support service. They target
Microsoft Windows users. The fraudster claims to be a Microsoft Tech Support
Employee. These calls primarily originate from call centers in India. The fraudster will
attempt to get the victim to allow remote access to their computer. After remote access
is gained, the fraudster uses confidence tricks involving utilities built into Windows and
other software to gain the victims trust and pay for services. The fraudster actually
steals the credit card information or persuades the victim to log in to their internet
banking center, lying that a secure service is connected, and they cannot see the details
to receive a refund.

Operation – These scams rely on social engineering. They use numerous confidence
tricks to entice students to install remote desktop software. Once they have access,
they take control of the student’s computer and use several Windows components and
utilities to make the student believe the computer has issues that need to be fixed.

Initiation – These support scams begin in a variety of ways. They usually begin with a
cold call, associated with a third party-Microsoft or Windows Tech Support. They also
advertise on popular search engines like Bing or Google. Some scams have been
initiated, via pop-up ads, on infected web sites instructing students to call a phone
number. These pop-ups often resemble error messages as the blue screen of death.

Remote Access- The fraudster instructs the student to download and install a remote
access program such as, Team Viewer, LogMein, GoToAssist or ConnectWise Control,
and provide them with the details required to remote control their computer using that
program.

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Prevention Tips
 Never relinquish control of your computer to a third party unless you know
it’s the representative of a computer support team you contacted. Scammers
can steal your personal information and install malware that is later used to
commit identity theft.
 Be wary of unsolicited calls. Legitimate tech companies don’t make
unsolicited calls to their customers. This is a popular scam tactic. Remember,
scammers can spoof official looking phone numbers, so don’t trust your Caller
ID.
 Look out for warning screens. Nearly half the tech support scams begin with
an alert on the students computer screen. This pop up will have a phone
number to call for help. Instead of calling, shutdown your computer and restart it.
 Don’t click on links in unfamiliar emails. Scammers also use email to reach
students. These messages point consumers to scam websites that launch pop-
ups with the fake warnings and phone numbers.
 Beware of anyone asking for untraceable payments. Scammers often ask for
payment via wire transfer, gift card or pre-paid debit cards. Legitimate
companies do not ask to be paid this way.
 Download software only from official vendor sites or the Microsoft Store.
Be wary of downloading software from third-party sites. These sites may have
been modified without the owner’s knowledge to bundle support scam malware
or other threats.
 Use Microsoft Edge when browsing the internet. It blocks known support
scam sites using Windows Defender SmartScreen. Never call the number in the
pop-ups. Microsoft’s errors and warning messages never include a phone
number.
 Enable Windows Defender Antivirus on Windows 10. It detects and removes
known support scam malware.

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4. Student Loan/Scholarship Scams
Students are being targeted by several scams to
include guaranteed scholarships, financial aid
and/or offers of student loan debt relief. The
scammers prey on the financial needs of the
student with the promise of a significant award
or lower cost loan. In reality, their goal is to get
the student to pay up-front costs or fees for
which the student will receive no benefit or
obtain the students personal identifiable
information (PII), bank account numbers or
credit card information.

Scholarships

Many of these scams guarantee a scholarship which is just not true. No scholarship is
guaranteed and the scammers typically ask you for an upfront ‘management,
processing or enrollment fee. Once the fee is paid, there are requests for additional
fees or there is no further contact with the student from the solicitor. Scholarship
applications must be submitted by the student, not a third party. The student must write
their own essays and gather their own letters of recommendation. A third party who
offers to do all this for you should be a red flag that it’s a scam. Another red flag is you
receive an email or phone call advising that you have been selected for a scholarship, a
scholarship you never applied for. Scammers often use pressure tactics advising the
student to act fast or risk losing the scholarship. In reality, they are only trying to get
your financial information.

Loans and Debt Relief

In some circumstances scam loan companies will tell you they can get you the best
rates, for a nominal fee. Legitimate student loans do not require upfront fees. If there
are any processing fees involved, they are lumped into the repayment amount or
deducted from the loan disbursement. Loan consolidation scams typically charge
students a consolidation fee upfront and then don’t deliver on the promise. Student
loans can be consolidated for free at
https://studentloans.gov/myDirectLoan/index.action

Student loan debt elimination is also a well-known scam. Legitimate student loan debt
must be repaid and can only be eliminated in rare circumstances for reasons like
permanent disability, death or falsified documents.

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Prevention Tips
 Ignore offers with a demand for an immediate answer.
 Never give out your personal identifiable information, including your social security
number, bank account numbers or credit card information.
 Never share your FSA ID or sign a power of attorney or third party authorization
allowing someone to act on your behalf relative to your student loan.
 Do not pay a third party to manage and make payments for you.
 Verify the existence of the business, via directory assistance and the internet.
 Visit the U.S. Department of Education Federal Aid website at
https://studentaid.ed.gov/sa/repay-loans/avoiding-loan-scams. This website has a
lot of information regarding seeking help from trusted debt relief companies and
actions to take if you’ve already shared personal information with a student loan
debt relief company.
 Ignore a company that claims they are affiliated with the Department of Education.

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5. Identity Theft Tips to Protect your Identity:
Identity Theft occurs when a fraudster steals
 Never give PII over the phone or
key pieces of your personal identifying
internet unless you initiated the
information (PII) and uses this information to
contact.
gain access to your financial and personal
 Never input your credit card or
accounts, opens new credit and/or financial
financial account information at a
accounts, purchases vehicles, rent
website unless it offers a secure
apartments, opens utility accounts, phone
transaction. Indications of a secure
service, etc. PII may include your name, date
transaction include an icon of a lock
of birth, social security number and mother’s
at the bottom strip of the web
maiden name.
browser page. The URL address for
the webpage will change from “http”
to “https”.
 Shred unwanted important
documents containing PII before
discarding them.
 Memorize your social security
number. Do not carry your social
security card in your wallet or purse.

Monitor Your Credit:

Review credit card and financial account

statements each month and reconcile purchases.

Order your free Consumer Credit Report each year

and review the report for accuracy. You can order
the free credit report online at
annualcreditreport.com.

If you are concerned about becoming a potential

victim of identity theft you can freeze your
consumer credit file by contacting the 3 Credit
Reporting Agencies, via their websites. Click on the
tab for credit freeze. This will make it extremely
difficult for a fraudster to open new accounts using
your identity.
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6. Behavior Blackmail Scam
College students are extorted for money in
return for maintaining their reputation on
campus, with family and friends. Students are
caught on video doing something inappropriate
or share intimate photos. The blackmailer
threatens to publish the unsavory video or
photographs on social media unless payment is
made immediately.

Students have hooked up on dating sites and

convinced to send their “match” intimate
photos. Once that’s done, the match will
demand additional compromising photos and/or
sexual favors from the student. If the student is
uncooperative, the match will threaten to post/share the photos across social media
platforms, via email or through other online dissemination.

Others have been tricked into sending intimate photos to someone impersonating a
celebrity, talent scout, singer or athlete. Once that’s done, the impersonator will
blackmail the sender and demand money, sexual favors, more intimate photos or
videos. The perpetrator gets a rush from the control they hold over the student.

Behavior blackmail has serious consequences and can have devastating outcomes.
Some cases have resulted in students taking their own lives. Other matters have
resulted in serious criminal charges filed against those who have posted photos of
students, who were minors.

Prevention Tips:
 With the prevalence of a phone in every hand and a multitude of social media apps,
students should be aware their every action can make its way to the internet with
the click of a button.
 Keep apps and privacy settings set to the strictest levels possible.
 Do not share compromising photos with anyone, even dating partners. Not all
relationships last forever or end on amicable terms. Do not save intimate photos on
your device.
 Be mindful of others who may be impaired and acting inappropriately – be
respectful and don’t take or post pictures of them online. The internet is forever and
a lapse in judgment today can come back to haunt you in the future.

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7. Roommate Rental Scam
This scam is one of many variations of fake check scams. The fraudster answers an ad
online or through a phone number posted on campus claiming to be a potential
roommate. The fraudster sends a check in an amount that exceeds the agreed upon
initial rent. The check is deposited into the bank and appears to clear. The funds are
credited to the account. The potential roommate (Fraudster) requests the extra money,
an amount paid above the agreed upon price, be returned to him/her via wire transfer,
through a digital financial transaction such as Venmo, Apple Pay, etc. or via Mobile
Deposit if the account holder provided log on credentials. The excess money is returned
to the potential roommate (Fraudster). On a later date the bank notifies the student the
deposited check is bogus and the student is out the money.
A variation of the Roommate Rental Scam is when a student answers an ad online. The
ad includes photos of the apartment and requested rent. The fraudster claims to be out
of town and is unable to show the unit. A refundable deposit is requested to hold the
unit until he/she can show you the apartment. The deposit is electronically remitted to
the fraudster. The fraudster never owned the unit and the student is out the money
(Deposit).

Student Prevention Tips

 Trust your gut – If the apartment seems too good to be true, it probably is.
 Beware of a roommate or landlord who can’t meet with you in person. If your
only way to communicate with them is via email, be very wary.
 If you’re pressured into sending a deposit immediately, slow things down until
you can properly research the offer.
 Do your research on the apartment and the people. Always be skeptical.
 Search “Roommate Scams” online to learn about the most recent scams.

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8. PayPal Scams
PayPal typically uses email to contact its customers. The information below can help
you make sure it’s really PayPal, and not somebody trying to gain access to your
account.

Fake email addresses:

Fraudsters can easily fake the PayPal name in the sender’s email address. For
example, an email can appear to be from “PayPal Services,” but is actually from
[email protected].

If you mouse over the name or click “Reply,” you should be able to see the full email
address of the sender. Sophisticated fraudsters can fake the entire name to look like a
legitimate sender, so be careful.

If you do click a link in an email, be sure to review the URL of the site where you land. It
is easy for bad guys to copy the look of a legitimate website, so you need to check that
you are at the correct website.

Verify through your PayPal

account:
If you receive an email that says that you've
received a PayPal payment, take a moment
to log in to your PayPal account before you
ship any merchandise. Make sure the
money has actually been transferred, and
that it isn’t a scam.

An email from PayPal won't:

Ask you for sensitive information like your password, bank account, or credit card.

Contain any attachments or ask you to download or install any software.

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9. Re-Shipping Scam
Most re-shipping scams originate when a student
answers an on-line advertisement, applies for a
position on a job board or other official looking website
for “work at home” positions.

Successful applicants are promised thousands of

dollars for working at home with no special skills and
minimal training. These jobs are very attractive to
students, stay at home parents and seniors.

These positions are often advertised as merchandise

managers, import/export specialists or package
processing assistants.

The employer (Fraudster) describes the duties of the position to include:

 Receiving merchandise from merchants (Usually Electronics)

 Consolidating and repackaging the merchandise
 Affixing postage paid mailing labels
 Re-shipping parcels to an overseas address

What most people don’t realize is the merchandise was purchased with stolen credit
cards or counterfeit checks and you, the employee, are an unwitting co-conspirator to
the crime.

Here is an example of what a job ad might look like:

Prevention Tips:
 Steer clear of job advertisements where the position description involves
repackaging or re-shipping merchandise.
 Do not provide your personal identifiable information to on-line job
applications. Your information may later be used in an ID Theft scheme.
 If the salary does not match the actual work effort, it’s a scam.

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10. Ride Share Scams

Whether you are riding with Uber, Lyft, Via, or any of the other Transportation Network
Companies(TNC), the most important first step you can take to ensure your ride is
seamless and safe is to make sure you enter the right vehicle. Prior to pick-up, every
TNC provides the customer with valuable information to ensure they enter the correct
vehicle. Information should include the vehicle make and model, the first name of the
driver, photo of the driver and the vehicle license plate number. When your driver arrives,
politely ask him/her their name and check their answer against the name provided on the
app. Make sure the make and model of the car is accurate and ensure the license plate
matches the information provided on the app. If any of the observed details do not match
those on the app, do not enter the vehicle.

Once inside the vehicle, your driver should never ask you to pay in cash. If the driver
pressures you to provide cash, ask to exit the vehicle and call 911. If the driver refuses
to allow you to exit the vehicle, call 911.

Where you live is an important piece of information and you may not want to share this
information with others. Instead of being dropped off directly in front of your apartment,
house or dorm, select a drop off location adjacent to your residence.

Most of the time after you exit the vehicle, your payment will be immediately processed.
If you notice a cleaning fee charge ($100-$300) for no legitimate reason (you did not make
a mess or vomit in the vehicle), immediately access the company website, select the trip
in question and select the help section. There you will find a link titled “Dispute Cleaning
Fees.” Click this link and dispute the charge. You should also contact your credit card
company and dispute the charge.

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If you find an unauthorized charge on your credit card statement, immediately report this
information to your local law enforcement agency and your credit card company. Also,
some TNC’s have an app support for unauthorized transactions. For example, for
unauthorized purchases made through Uber, go to - https://help.uber.com/h/fe547761-
4384-42d4-8531-4cfb0e0e523e and complete the required information. Uber will refund
the amount for each unauthorized trip and provide you information linked to the
unauthorized transactions such as the phone number and email associated with the
account as well as the trip pick up and drop off locations.

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 Top Ten Fraud Prevention Tips

1) Get your free credit report at annualcreditreport.com. Each year you may
receive 1 free credit report from each of the 3 credit reporting agencies
(Trans Union, Equifax or Experian). Upon receipt, check for unauthorized
accounts, inquiries and unknown addresses.

2) Register to access your social security benefits statement at www.ssa.gov. Upon

receipt, review your estimated benefits and earnings record. You should also
ensure no one is using your social security number for employment or other
benefits.

3) Know who you are paying, via person to person payments, i.e., Zelle, Venmo,
etc. Pay and receive money only with people you know. Don’t pay strangers with
P2P (Person to Person). Most “person to person” transactions are instantaneous
and irreversible.

4) Do not pay for merchandise online or via the phone using a debit card. Debit
cards are vulnerable because they are linked to a bank account. You have a far
better chance of resolving a fraudulent transaction when paying with a credit card
rather than with a debit card. Also do not provide your debit/credit card numbers
over the phone, via emails or on websites unless you initiated the call or order.

5) Keep thorough records. If your laptop is stolen, can you provide a full description
to the police? Write down your computer's make, model, color and most
importantly the unique serial number, which acts as a key identifier, much like the
vehicle identification number (VIN) on a car. You might also need this information
to file an insurance claim.

6) Do not use an ATM machine if you notice wires or a skimming device attached to
where you insert your card. Also, cover the key pad with your hand, a hat or
other piece of clothing when inputting pin numbers. Notify the bank or local
police if you observe device(s) attached to the ATM.

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 7) Do not make a debit card purchase without first verifying the account balance.
Most financial institutions will allow the transaction to process through even when
you don’t have enough funds to cover the charge. This will result in penalties and
unnecessary fees.

8) DON’T ASSUME AN EMAIL OR PHONE CALL IS AUTHENTIC - Just because

someone knows your basic information (such as your name, date of birth and
address), it doesn’t mean the email or phone call is legit. Criminals will use a
range of social engineering techniques to get your personal identifiable
information.

9) When leaving bars or restaurants late at night do not accept a ride from a person
who purports to be employed by a well-known private car service or
transportation network company unless you initiated the call for service. In the
past, fraudsters have driven students to secluded areas and robbed them. In
other cases intoxicated customers were driven to ATM machines and forced to
withdraw funds from their accounts.

10) Do not offer to deposit a check into your account if requested by an unknown
individual. The individual may claim they do not have an account and offer a sob
story. You are financially responsible for all Items deposited into your account.
Do not provide your account log on credentials to anyone. If you do, they can
deposit stolen or counterfeit checks into your account. The Bank will hold you
financially responsible.

Trust Your Gut - If something just feels wrong, it probably is.

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 Fraud Prevention Resources

International Association of Financial Crimes Investigators

The IAFCI, a non-profit international organization, provides services and an

environment within which information about financial fraud, fraud investigations and
fraud prevention methods can be collected, exchanged and taught for the common
good of law enforcement, the financial payment industry and our global society.

www.iafci.org

Acknowledgements
Phil Bartlett
United States Postal Inspection Service

Michael Carroll
United States Postal Inspection Service

Brian O’Connor
Cambridge Police Department

Missy Coyne
NICB

Linda Presti
American Express

Wade Stormer
Uber

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