Student loans, fraudulent letters; Wisconsin scam warning for June
Wisconsin scam warning for June
Wisconsin's Division of Trade & Consumer Protection is sharing its top consumer warnings for June.
MILWAUKEE - Wisconsin's Division of Trade & Consumer Protection is sharing its top consumer warnings for June.
Student loan debt scams
Why you should care:
Time is up for student loan debt on defaulted federal loans. The U.S. Department of Education resumed its collection efforts on May 5. That means involuntary collections like wage garnishments and Social Security reductions are back for the first time since the COVID-19 pandemic.
Student loan debt scams
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For scammers, it's a prime opportunity.
"There's been so many changes, pauses, starts and stops since 2020," said Michelle Reinen, administrator of the Wisconsin Division of Trade & Consumer Protection. "Where there's confusion, scammers will try to come and create misdirection."
Reinen is warning federal loan borrowers against any outreach that offers help with paying student loans and includes upfront fees or limited-time offers. Reinen said scammers may also promise immediate loan forgiveness or cancellation.
Student loan debt scams
"They can't promise anything," said Reinen. "They don't know the facts, your circumstances, the situation."
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Reinen advises borrowers to never share their Federal Student Aid ID, or FSA ID, with a caller. A scammer could use the FSA ID to access an account and take control of personal information.
Old-school letter mailing scams
Why you should care:
One scam making the rounds in June is a return to tried-and-true tactics: fraudulent letters in the mail.
Old-school letter mailing scams
One letter sent to a Wisconsinite claims to be from Medicare. It said the recipient must take action to avoid penalties for late enrollment and included "helpful" tips and information, along with a fake website and phone number.
"It contained a questionnaire," said Reinen. "That questionnaire would ask for personal indentifiable information."
Video games warning for parents
Why you should care:
The final warning is for parents who help fill kids' summer free time with more screen time.
Reinen reminds parents to set limits on in-game purchases and downloading games. She recommends reading online reviews before downloading apps or video games, and setting clear family rules for use.
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"You need to talk about the important to money, paying online, chatting and chatting in rooms," said Reinen.
Reinen recommends watching your child play the game.
Video games warning for parents
"Check in from time to time on the game as the levels advance," said Reinen.
Report a scam
What you can do:
Anyone who experiences one of the scams described above can let the state know. The Wisconsin Department of Trade and Consumer Protection (DATCP) has a form you can fill out online.
The Source: Information in this Contact 6 report is from the Wisconsin Department of Agriculture and Consumer Protection.