London: Students across the UK are being warned about scams designed to steal their bank details and divert student loan payments as the new academic year begins.
The warning comes as around £2.6bn in maintenance support is being paid to approximately 1.1 million students in England and Wales. The first of three annual instalments is due to reach students’ accounts this month, while students in Scotland and Northern Ireland receive their loan payments monthly.
The Student Loans Company (SLC), which manages student loans and grants, said criminals are using the timing of these payments to target students with convincing fake messages.
How the scam works
Fraudsters may contact students through text messages, emails or phone calls, claiming there is an issue with their student finance account or that their bank details need to be updated.
The messages often create a sense of urgency, warning that a payment could be delayed or an account could be closed unless the recipient immediately logs in through a provided link.
The link typically directs victims to a fake website designed to resemble the official SLC platform. Once students enter their login or banking information, scammers can use the stolen details to access their genuine account and change the bank account linked to it.
The criminals then attempt to redirect the upcoming maintenance payment into an account they control. The SLC noted that the fraudsters deliberately target periods when large numbers of students are expecting payments, using the prospect of missing essential financial support to pressure people into acting quickly.
£519,000 lost to fraud
During the previous academic year, 168 students lost a combined £519,000 to scams, according to the SLC. More than 1,100 students had their account details changed, although in most cases the attempted fraud was detected before money was lost.
Students in England and Wales typically receive their loan instalments in September, January and April, making these periods particularly important for scam awareness.
How students can stay safe
The SLC has reminded students that it will not ask them to confirm personal or financial information through text messages, emails or social media. Students should avoid clicking links in unexpected messages and instead access their student finance account directly through the official UK Government website.
Students have also been advised not to publicly share information about when their loan payments are due, including on social media. The SLC does not provide services through WhatsApp and does not initiate contact with students through social media platforms.
Anyone who believes their student finance account has been compromised should change their password immediately and contact the SLC. Students affected by fraud should be eligible for a replacement payment, meaning genuine victims should not ultimately suffer a financial loss.
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