NORTHBROOK, Ill., December 15, 2022 – Nearly one in ten Americans have been the victim of federal student debt forgiveness scams, and two in five of these victims are contacted at least weekly or more , according to the latest edition. from Allstate Identity Protection Quarterly report “Identity Fraud in Focus”.one
The findings come as legal battles leave millions of student loan borrowers in limbo. Scammers are taking advantage of the situation by calling borrowers directly and promising to help them obtain a student loan debt forgiveness, forgiveness, cancellation, or relief in exchange for a fee if the borrower “acts fast.”
“You don’t have to pay anyone to get debt relief. The Department of Education application is free and you can do it all yourself,” says Vera Tolmachoff, Allstate Manager of Identity Protection Restoration.
The most common way of contact for student loan debt relief scams is by phone. Emails and text messages are also popular means for scammers to target victims.
Beware of online Christmas shopping scams.
This trimester Report “Identity fraud in the spotlight” also take a look at online holiday shopping scams and find that personal information theft is the costliest type of fraud, with more than half of the victims surveyed losing up to $249. The most common type of online holiday shopping scam is when someone sends money for an item but doesn’t receive it.2
“Consumers need to be very careful around the holidays,” said Brian Stuart, Director of Customer Service for Allstate Identity Protection. “Watch out for prices that seem incredibly low, make sure you only buy from safe sites, and always adopt a healthy skepticism.”
When it comes to online shopping scams, almost half of American adults are worried about becoming a victim, and about a third say they have been the victim of an online shopping scam in the past.
Allstate Identity Protection is committed to providing essential information, tools and resources to help you protect yourself against fraud. For more detailed current fraud trends, including tips on how Americans can protect their personal information and avoid scams, see the “Identity fraud in the spotlight” report.
[1, 2] This survey was conducted November 11-14, 2022 on behalf of Allstate by Morning Consult, among a national sample of 2,212 adults. Interviews were conducted online and data was weighted to approximate a target sample of adults based on age, education level, gender, race, and region. Full survey results have a margin of error of +/- 2%.
