Students are being warned about a fresh push by the government to raise awareness of student loan scams as the new academic year starts. Criminals are attempting to defraud students as approximately £2.6bn in maintenance support is paid out to 1.1 million students this month.
Scammers typically send messages, often by text, claiming bank details need updating or that an account has been closed. These messages include links to fake Students Loans Company (SLC) websites, where students are prompted to enter their login and bank details.
Once these details are obtained, criminals can access genuine student accounts to change bank information and divert maintenance loan payments. The SLC reported that in the last academic year, 168 students lost £519,000 to such scams, although fraud was stopped before money was lost in most cases where details were changed.
The SLC advises students that it will not ask for personal or financial information via email, text, or social media. Students should log in to their accounts directly through the Gov.uk website and avoid clicking on links in suspicious messages. If an account is suspected of being compromised, students should change their password immediately and contact the SLC, as victims may be able to receive a replacement payment.