Con artists have been around forever. Scams have caught unwary victims before, and they will again. But it seems that one of the newest targets for these unsavory characters is college students, and often their parents as well. Make sure you stay alert and talk to your student about being careful as well.
College students may be prime targets of scammers for several reasons. They are busy and distracted, many don’t have much financial or tax experience, most don’t have extensive credit histories yet and/or don’t check them, and they spend much of their lives online.
What’s the latest threat?
According to the Internal Revenue Service, one of the most recent scams involves students receiving a phone call from someone impersonating an IRS official and demanding payment of a ”federal student tax.” The IRS wants to make it clear that there is no such tax. But the caller claims that the student owes the tax and that he will call the local police to arrest the student if it is not paid. If the student hangs up, there may be follow-up calls. Often, the caller has just enough information about the student, gleaned from public sources such as directory information, to make the call sound more legitimate.