Student Loan Scam Warning: Fraudsters Target Students With Fake Messages to Steal Maintenance Payments

Students across the UK are being warned about a sophisticated scam designed to steal maintenance loan payments by exploiting anxiety over bank details just days before money is due to arrive.

Fraudsters are sending fake texts and emails and making phone calls claiming that a student's bank details have been changed or that their upcoming payment is at risk. Victims are then directed to convincing websites designed to look like the official Student Loans Company (SLC) platform.

The scam is particularly dangerous because it is timed around the dates when students expect their money. About £2.6 billion in maintenance support is due to be paid to around 1.1 million students in England this month, creating a huge target for criminals.

How The Student Loan Scam Works

The scam begins with a message designed to create panic. Students may be told that their bank details have been changed, that their account has been closed or that they need to confirm information before their next payment can be released.

The message typically contains a link. Clicking it takes the student to a fake website that closely resembles the genuine Student Loans Company service. Victims are asked to enter their login details and banking information.

Once criminals obtain those details, they can move quickly to access the student's genuine account and change the bank details so that the maintenance payment is redirected to an account controlled by the scammers.

Alan Balanowski, risk director at the Student Loans Company, told the Guardian that criminals are effectively racing against time to change account information before the fraud is detected.

£519,000 Lost By Students

The scale of the fraud has already become significant. According to the Student Loans Company, 168 students lost a combined £519,000 to scams during the last academic year.

More than 1,100 students had their account details changed during attempted frauds, although most of those cases were stopped before criminals managed to steal the money.

The timing is deliberate. Students in England and Wales generally receive their maintenance loan instalments in September, January and April, meaning those months provide criminals with predictable opportunities to target large numbers of people.

The scam can be particularly effective against students receiving their first university payment, many of whom may be unfamiliar with how the student finance system works.

What Students Should Do

The Student Loans Company has warned that it will not ask students to provide sensitive personal or financial information through email, text messages or social media. Students who receive an unexpected message should not click its link. Instead, they should access their student finance account directly through the official GOV.UK website.

The SLC also does not provide services through WhatsApp or initiate contact through social media, meaning unexpected messages on those platforms should immediately raise suspicion.

Students have additionally been advised against publicly posting information about when their maintenance loan is due. Criminals can use payment dates and other publicly available information to make their scams appear more convincing.

Anyone who receives a suspicious email can forward it to the government's phishing reporting service, while scam text messages can be forwarded to 7726.

Students who believe their account has been compromised should change their password immediately and contact the Student Loans Company. Genuine victims may be eligible for a replacement payment, meaning the priority is to stop the fraud and secure the account before further money is diverted.