Students Warned of 'First Term' Scam Surge

University students face a significantly higher risk of encountering financial scams, with a substantial majority of incidents occurring shortly after they begin their studies. Research indicates that 78% of students who have been targeted by fraudsters reported the scam happening within their first three months at university. This heightened vulnerability means students are nearly twice as likely to fall victim to scams compared to individuals not pursuing higher education.

Campaign Launched to Protect Undergraduates

In response to these findings, NatWest, Mastercard, and the Home Office have collaborated to launch the 'Stop! Think Fraud' campaign. This initiative aims to raise awareness among students about common fraudulent tactics and encourage them to pause and verify before acting on financial requests. Fraud minister Lord Hanson stated that fraudsters specifically target 'freshers' with bogus job adverts, fake rental properties, and scam investments, often at the start of a new academic term.

The campaign highlights several prevalent scam types that frequently target young adults. These include rental scams, where deposits are requested for non-existent properties; ghost broking, involving the sale of fake motor insurance policies; and money mule schemes, which promise easy money for transferring illicit funds through personal bank accounts. Job scams, bogus online marketplace listings, and cryptocurrency investment fraud are also identified as common threats.

Advice for Students

Simon Forbes, president of Mastercard UK & Ireland, emphasised the new financial independence students experience at university, bringing with it increased risks. James Holian, chief customer and operations officer at NatWest Group, added that fraudsters often use social media to target students, making it crucial to recognise warning signs and pause before taking action. The campaign provides practical advice, urging students to verify investment firms, check seller reviews, be wary of 'easy money' job offers, and always view properties in person before transferring funds.

The research underpinning these warnings involved surveys conducted by Censuswide, which polled 1,000 university students and 1,000 UK adults in September, and by Savanta, which surveyed over 5,000 undergraduate students across UK universities in June and July. Universities and student unions across the UK will receive posters as part of the awareness drive.

What Happens Next

Students are encouraged to report any suspected fraud immediately to their bank or building society, and to the police. This action can assist in tracing funds and preventing further scam payments. The 'Stop! Think Fraud' campaign materials will be distributed to educational institutions to help safeguard students as they begin their academic year.