Loans

Urgent warning after scam stimulus email promises help with student loans under the CARES Act

Urgent warning after scam stimulus email promises help with student loans under the CARES Act
Written by Publishing Team

Students are warned about a fraudulent email pledging to repay loans under the CARES Act.

The Sun has seen an email claiming that student loans may qualify for stimulus relief.

Students have been the target of scammers throughout the Covid pandemic

2

Students have been the target of scammers throughout the Covid pandemiccredit: scientific
The Sun saw a scam email claiming that student loans may qualify for forgiveness

2

The Sun saw a scam email claiming that student loans may qualify for forgivenesscredit: the sun

It invites recipients to “submit” an application by January 31.

In August, President Biden signed off on plans to extend the moratorium on federal student loan payments through January 31.

But on December 22, the White House revealed that the pause was extended for another 90 days, until May 1.

“We know that millions of student loan borrowers are still dealing with the effects of the pandemic and need more time before payments can resume,” Biden said.

There is no need to submit any “request” by the end of this month.

The email states: “This applies to all loan situations including those loans in default and foreclosure.”

The sender urged the receiver to call the “Dedicated Eligibility Line” at 209-332-8233.

In the scam email, the recipient was warned that benefits would only be applied on a “first come, first served” basis.

Read our Stimulus Checks live blog for the latest updates on Covid-19 relief…

They were also urged to provide their personal verification code when speaking to a “representative”.

Ben Brigida, director of operations for Expel’s Special Operations Center, told TechRepublic that attackers are trying to trick people into giving them information.

“The best way to do this is to make the email appear legitimate, to call for one clear action, and to associate it with emotions,” he added.

Scammers want their victims to move quickly so they don’t stop and think about whether the email is legitimate.

Student loan borrowers have been a target of unscrupulous scammers throughout the COVID pandemic.

Experts say it’s probably too good to be true if you’re given a tolerance, NerdWallet reports.

“It used to be called the Obama loan forgiveness hoax, now there’s the CARES tolerance hoax,” said Persis Yu, director of policy at the Center for Student Borrower Protection.

“Borrowers should always view advertisements that promise tolerance with skepticism.”

Education officials across the country are urging Americans to stop before sending personal information if they receive a letter about debt forgiveness.

Students should research the health of the company as there are not many companies run by scammers.

Americans should verify the email address scammers use as communication about student loans that tend to come from a government address.

Do not provide your Social Security number or bank details unless you are absolutely certain that the company is legitimate.

If in doubt, just hang up and report the incident to your bank provider.

For students who suspect that they are being scammed, they are advised to close their bank account immediately.

To do this, contact your provider and they will block any pending outgoing payments.

Banking providers can monitor your account for any suspicious activity, and they can take appropriate action.

It can take weeks, months, or years before your details are used for fraud, so credit reports should always be monitored.

Warning from phone scammers claiming to be police officers and demanding up to $3,600 to ‘avoid arrest’

We pay for your stories!

Do you have a story for US Sun?

About the author

Publishing Team

Leave a Comment