How financial institutions can help accountholders avoid back-to-school fraud

As families prepare for a new school year, fraudsters are preparing, too.

The back-to-school season is full of expenses, deadlines and decisions, creating opportunities for scammers to blend into legitimate activity. While consumers are checking items off a growing to-do list, they are less likely to question whether a request, offer or message is legitimate.

For financial institutions, this presents an opportunity to provide timely fraud education. Understanding how scammers build trust and create urgency can help institutions equip accountholders to recognize warning signs before fraud occurs.

Online shopping scams take advantage of urgency and bargain hunting

Back-to-school shopping often comes with budget pressure. Families want to save money, and students are looking for affordable ways to purchase what they need before classes begin.

Fraudsters exploit that mindset by creating offers that feel too good, or too urgent, to ignore. When shoppers focus on a discount or limited-time promotion, they're less likely to verify who is behind the offer.

These scams work because they feel familiar. The shopping experience appears legitimate until the consumer realizes the seller isn't real. By then, money or personal information may already be in the wrong hands.

Financial institutions frequently see the aftermath through disputed transactions and fraud claims. Educational messaging can help accountholders recognize when an offer is creating pressure to act before they have had time to verify its legitimacy.

Student loan scams thrive when consumers are looking for answers

Borrowers trying to understand student loan requirements or financial aid options often seek guidance from outside sources. Scammers take advantage of that uncertainty by posing as experts who promise quick solutions.

These scams depend on trust. Once consumers believe they're working with a credible source, they may share account credentials, personal information or payment details.

For financial institutions, these scams are especially concerning because they often involve sensitive financial information. Helping accountholders recognize common warning signs, such as requests for payment or account credentials, can go a long way toward reducing fraud risk.

Housing scams prey on pressure and limited time

Fraud becomes more effective when people feel rushed, and housing searches often create exactly that kind of pressure.

As move-in dates approach, students and families may feel compelled to act quickly when a promising rental appears. Fraudsters use that urgency to discourage verification and push victims into sending deposits before confirming ownership.

The financial impact can be significant, especially for families already managing education-related expenses. Financial institutions can encourage accountholders to slow down and remember that legitimate landlords will not object to questions or verification before money changes hands.

School impersonation scams are becoming more convincing

Trust plays a central role in many scams. Fraudsters increasingly pose as schools, universities or other organizations students expect to hear from during the school year.

Timing often makes these messages effective. When a communication arrives during registration, move-in season or financial aid discussions, consumers may be more likely to assume it's legitimate.

AI-generated content adds another layer of risk. Many fraudulent emails and text messages now appear polished and professional, making them harder to spot.

Financial institutions can reinforce a simple habit that applies across nearly every fraud scenario: verify first, act second. Accountholders should confirm unexpected requests using trusted contact information rather than the instructions included in a message.

Impersonation fraud remains one of the most effective scam tactics

At its core, impersonation fraud relies on manipulation. Fraudsters create a sense of urgency, fear or authority that encourages victims to react before verifying what they are being told.

Many scams begin with what appears to be a helpful message about suspicious account activity or a potential financial problem. The request sounds reasonable, which is exactly what makes it effective.

Consistent education remains one of the strongest defenses. Financial institutions can help by reinforcing a simple message: If someone asks an accountholder to move money to "protect" it, it is likely a scam. Accountholders should also contact their financial institution directly whenever a request involving money or account access feels unusual.

Fraud awareness starts before a scam occurs

Fraud prevention is often most effective before a scammer makes contact. Accountholders who understand how fraud works are more likely to recognize when something feels off.

Two reminders worth reinforcing

• Slow down when a request creates urgency. Pressure is often a warning sign that a scammer is trying to prevent someone from verifying information.
• Verify before taking action. Whether the message involves a purchase, payment or account issue, use trusted contact information to confirm the request is legitimate.

A simple reminder at the right moment can make all the difference. By helping accountholders slow down, ask questions and verify requests, financial institutions can play a meaningful role in preventing fraud before it happens.

Resource: Federal Trade Commission

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