Student Loan Scams on the Rise: SLC Warns of Increasing Threats to University Students

Strategic Insights -

As the new academic year begins, The Student Loans Company (SLC) is warning students to be vigilant of scams that can result in significant financial losses. With £2.2 billion in maintenance payments to be made to nearly one million students in September, SLC is urging students to remain cautious and aware of scams that are constantly evolving. Alan Balanowski, Risk Director at SLC, emphasizes the importance of spotting signs of scams, including suspicious emails, phone calls, and text messages.

Key Takeaways:

  • SLC will pay approximately £2.2 billion in maintenance payments to almost one million students in September.
  • Text message (SMS) fraud is currently the most popular form of scam targeting students.
  • Scammers are impersonating SLC or students via phone calls (vishing), contact by text message (smishing), or via emails (phishing).
  • Last year, SLC stopped £45.5 million from being stolen from students through its prevention methods.
  • Students can identify potential scams by checking the quality of the communication, looking out for suspicious messages, and being cautious of links and phone calls that convey a sense of urgency.
  • SLC stresses that genuine communication will always be from the official source, and students should be mindful of the information they share about themselves on social media.
  • The SLC Economic Crime Unit can be contacted immediately for suspicious messages.
  • Neither SLC nor Student Finance England provide services through WhatsApp, and students should be cautious of unsolicited contact on social media channels.

Statistics:

  • £2.2 billion: The amount SLC will pay in maintenance payments to nearly one million students in September.
  • £45.5 million: The amount SLC stopped from being stolen from students last year through its prevention methods.
  • 30% increase: The rise in attempts by scammers to defraud students over the last two years.
  • One million: The number of students who will receive maintenance payments from SLC in September.

Sources:

  • The Student Loans Company (SLC)
  • Alan Balanowski, Risk Director at SLC
  • Action Fraud, the UK's national reporting centre for fraud and cybercrime
  • Stop! Think Fraud, a campaign from the Home Office
  • Student Finance England (SFE)
  • gov.uk, for guidance on phishing scams (referenced in the SLC guide link mentioned in the article)