From bogus investment offers promising “guaranteed” high returns to fraudulent scholarship applications charging hidden fees, scammers prey on financial and academic ambitions to steal money or personal data.
What Are Fake Investment & Scholarship Scams?
Scammers impersonate legitimate financial advisors, banks, or scholarship foundations, often using look-alike websites and emails to solicit funds or personal details under the guise of application fees or initial investments.
Real-World Example
In 2024, the FTC took action against a fake scholarship site posing as the “International Study Abroad Grant Trust (ISAGT).” Students paid non-refundable application fees and unknowingly shared sensitive information.
FTC action on scholarship scheme
How to Spot These Scams
Look for URLs that slightly differ from official domains (e.g., “scholarship-awards.com” instead of “scholarships.gov”), unsolicited emails promising risk-free investments, or requests for upfront fees without transparent terms.
How to Protect Yourself
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Verify official sources by searching government or school websites directly.
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Research thoroughly—check for reviews, accreditation, and contact details.
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Avoid upfront fees for applications or investment accounts.
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Use secure payment methods—credit cards often offer dispute protection.
If You’ve Been Targeted
Report fake scholarships or investment schemes to the FTC at reportfraud.ftc.gov or call 1-877-FTC-HELP. If you lost money, consider filing a complaint with the SEC at sec.gov/investor.
