Millions of student loan borrowers have reported receiving phone calls offering to pay off their loans or get full forgiveness.
– Timothy Benson, Chief Analyst
SOFIA, BULGARIA, December 17, 2021 /EINPresswire.com/ – Federal agencies around the world are urging student loan borrowers to be careful as dubious businesses and potential fraudsters target borrowers with bogus loan forgiveness offers.
Timothy Benson, chief analyst at Cyber-Forensics.net, said in a press release: “With student loan repayments resuming in February 2022, borrowers are exploring loan repayment options. But there are crooks who are out to cheat people. It is important to carefully consider repayment solutions and verify student loan cancellation eligibility.
Cyber-Forensics.net, a leading expert in cybercrime services for victims of online scams, looked at common scams related to student debt relief. Detailed analysis reveals that scammers typically use phone calls, emails, letters, and texts to offer federal student loan relief. Currently, there are three types of student loan scams:
Upfront Fee Scam: A fraudster claims to offer the best loan repayment rates only after the borrower has paid a small upfront commission. The amount can range from 1% to 5% of the entire loan.
Loan consolidation scam: A cybercriminal charges a fee for loan consolidation (often can be done for free). They call these processing fees, consolidation fees, or administrative fees. However, for students, the government does not charge a consolidation fee.
Lawsuit Consolidation Scam: Typically, borrowers enroll in debt management programs where counselors work on behalf of the borrower and negotiate the amount with creditors. Essentially, the crooks are acting as mediators claiming to help adjust the payment schedule and access borrower data instead.
A particular case related to the scam became a lesson in the life of millions of borrowers when a young elementary school teacher in Palo Alto, Calif., Was tricked into paying crooks thousands of dollars.
The scam victim said, “They got all the information from me,” and later found out that legitimate businesses never ask for such information over the phone.
Unlike the young teacher, many have fallen for scams losing thousands of dollars. But experts say it can be stopped if borrowers identify how the fraudulent schemes work:
Signs to Identify Fraudulent Student Loan Debt Relief Scams:
Scammers ask for upfront fees: Be skeptical when someone asks for direct payments. These types of fees often do not apply to students. And never share your credit card or bank information.
Con artists promise immediate loan forgiveness: Most government organizations run student loan forgiveness programs that require years of qualifying payments in certain areas before the loan can be canceled. So, anyone pushing for instant loan forgiveness could be an indication of an upcoming scam.
Request FSA ID Username and Password: Each student loan borrower receives an FSA ID or Federal Student ID that acts as a signature. This legal signature can be used to make changes to the borrower’s account with the knowledge of the account holder.
Scammers Use High Pressure Selling Phrases: Cybercriminals often try to instill a sense of urgency by quoting terms such as “Take immediate action for student loan forgiveness before program is terminated.” to encourage borrowers to contact them immediately.
Request for Third Party Authorization: Debt relief scammers often seek to get individuals to confirm personal information so that it can be changed later.
Misspelled Communication: A primary way to identify the scammer is to look for errors in the communication channel, such as misspelled words or grammatical errors.
What should a student loan scam victim do?
Some loan cancellation messages are not only information theft attempts, but are also designed to direct borrowers to high cost loan repayment programs with high bogus interest rates. And if someone is the victim of such a scam, they must act immediately. Here are some proven measures to fight student loan scams:
Contact Bank / Business: If borrowers shared credit card information or banking information with scammers. They should immediately contact the bank or the company that issued the credit card. Agencies can help waive fees or temporarily freeze payment to prevent the transaction from going through.
Change FSA ID: Contact Student Loans website and change account information and password details. If the user has been excluded from their profile, contact the relevant authorities as soon as possible to access the user’s account.
Contact the loan provider: If the person signed an authorization form or third party power of attorney while obtaining the loan, they should contact their loan service provider to revoke it.
Get Credit Report Freeze: Scam victims can also request a credit freeze on their credit report. The action would prevent fraudsters from opening new credit card lines on behalf of victims.
How To Get The Right Help With A Student Loan Scam?
The first step is to learn about student loan options. Also, contact the lender. And if borrowers don’t know where to start, they should consider bringing in cyber experts. They can help you with the student loan scam assistance procedure. Victims of scams can also get a consultation and understand legal ways to recover financial losses.
According to Timothy Benson, “People have won lawsuits against fraudulent companies. The chances of recovering money lost in scams are greater if people follow legal measures quickly,”
Recipients of scam victim support strongly recommend a team of cyberspecialists like Cyber-Forensic.net. Such expert teams can build a solid fund recovery plan and provide valuable advice without complicating the process.
Cyber-Forensics.net is committed to providing the most accurate research service for victims of online scams. Cyber-Forensics.net enables and simplifies the process of tracking down cybercriminals and helps to recover funds and create an atmosphere for a negotiated settlement. For more information, please visit https://cyber-forensics.net/.
write us here
Visit us on social networks: