Scholarship Fraud

Certain scholarship companies have been taking advantage of high school students looking to fund their college careers. ABSTRACT: Although these scholarship companies are scamming local students, the FTC wants everyone to know that there are precautions to take to prevent this fraud from happening to you.

Fake Scholarship Companies:

• If companies offer to help you make money, but only if you pay them first are scamming you.
• These companies have deceived an estimated 300,000 students and taken about $10 million each year from them and their families.
• After they receive your money, they move their fraud company to another location.
  They claim that they have lists of hundreds of scholarship opportunities and convincing fliers to fool college bound students and their families.
• They make a promise to return the payment you made to the company.

Local Students Who’ve Been Scammed:

Al Giangelli:

• Al was working hard at Burger King in order to save enough money for college.
• He sent in a $999 check of his hard-earned money to one of these scholarship companies, but never heard from them again.

Susan Carigg:

• Susan wanted to be a nurse, a low funding for school was taking a toll on her.
• She sent in a $799 check, but again, never heard back from the company.

Real Opportunities for Scholarships:

• Use free services when applying for scholarships.
• Free services include: libraries, and college and high school counselors.

FTC’s Warning to Students:

• Never give companies your credit card numbers, bank account numbers, or social security number.
• When given this information, these fraud companies empty bank accounts and add charges to credit cards.

Key Quotes:

• “ I worked hard for that money and they stole it,” – Al Giangelli.
• “If you have to pay money to get money it might be a scam. Be wary,” –FTC.
• “We can almost always help really exceptional students, and sometimes the poor,” --Matt Adamopoulos, UW- Oshkosh Head of Financial Aid.

Additional information:

The following links will direct you to a safer way of funding your education :

• http://www.finaid.org/scholarships/reporting.phtml
• http://www.fastweb.com/content/college-scholarships
• http://dpi.wi.gov/sspw/sccontentglines.html