In a previous article, we talked about red flags to look out for when applying for scholarships.

We’re going to expand on that topic and focus on things you can do to protect yourself from getting scammed.

Unfortunately, there are many bad actors lurking in the shadows so it’s imperative that you take all of the necessary precautions now to preserve your personal information.

1. Do your research.

Just because an organization sounds official does not mean it is.

Scammers often trick applicants by adding words that carry authority in their business names, such as American, Association, Center, Federal, Foundation, or National (just to name a few).

Here are some examples of fake organizations:

• Collegiate Scholarships Association
• Federal Financial Student Services
• Financial Education Center
• Foundation for Student Success
• Student Financial Aid Association

2. Vet the organization.

Contact the representative using the listed email address and phone number.

Then ask yourself these questions:

• Is it disconnected or out of order?
• How long did it take to receive an email response?
• How was your interaction with the individual?
• Were they professional and courteous?
• Did s/he thoroughly answer all of your questions?

3. Be vigilant.

The last thing you want to do is apply for a scholarship only to be scammed because you were careless, right?

Protect yourself by studying the information in front of you. What do you see? Is the website legit? Did anything during the email correspondence or phone call stand out to you?

4. Ask yourself: “Is this too good to be true?”

Keep in mind that scammers often employ psychological tactics commonly used in marketing to encourage you to act a certain way, which is giving them your money. Don’t be blinded by their empty promises!

5. Ask for a third opinion.

It’s important to get feedback from more than one person because reflecting on different perspectives allows you to make better decisions than if you were to make them alone.

Also, you need at least three people to obtain a majority.

Ask a friend, family member, teacher, guidance counselor, and anyone you trust. If they also think a scholarship is sketchy then it probably is.

The best course of action, in this case, is to move on to another opportunity. Don’t get too hung up on a scholarship because there is a sea of others that are credible and worth your time.

6. Apply to reputable organizations.

You should limit yourself to scholarships offered by well-known corporations (e.g., Apple, Google, Microsoft), organizations (e.g., Ford Foundation, NAACP, Planned Parenthood), and government agencies (CDC, DoD, EPA).

Note: Also applies to organizations in your community that you trust.

This relates to our earlier discussion on social capital because these organizations generally have a good track record of being trustworthy and credible.

7. Follow your instincts.

If a business rubs you the wrong way or you feel something is off, then trust your intuition and skip it. Applying to scholarships should make you more confident in the process, not less.

Legal Resources:

• How to file a complaint with the Federal Trade Commission (FTC)
• Report the scam to the FTC
• Report the scam to your state AG