$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
application fee scholarship scam
A scholarship opportunity requires an upfront application or processing fee, which legitimate scholarships never charge, and the scholarship itself does not exist.
“scholarship fraud”
↑ 65.9%Key indicators
Usually targetsHigh school students
Often hitsFreelancers and contractors
Common regionUnited States
Last updated2026-04-04
Estimated impact
$640
median reported loss
Typical range$40 – $4.0K
Recovery rate~15%
Scam breakdown
1
Scammers advertise scholarships through email, social media, or websites targeting students searching for financial aid.
2
Applicants are asked to pay a processing or application fee, typically 25 to 100 USD, before their application can be reviewed.
3
The scholarship does not exist — the fees collected from thousands of applicants are the scammer's profit.
What to do first
Never pay to apply for a scholarship — legitimate scholarships do not charge application fees.
Related terms
pay-to-apply scholarshipscholarship processing fee scamfake award applicationFake scholarship scamsEmailSurgingHigh school studentsCollege studentsParentsFreelancers and contractorsSmall business ownersPayroll, HR, and finance teamsUnited StatesCanadaUnited Kingdompay-to-apply scholarshipscholarship processing fee scam
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Carlos, 20, a high school students, encountered what appeared to be a legitimate fake scholarship scams situation while using Email. Scammers advertise scholarships through email, social media, or websites targeting students searching for financial aid.
Step 2
What happened next was calculated: Applicants are asked to pay a processing or application fee, typically 25 to 100 USD, before their application can be reviewed.
Step 3
The pressure escalated quickly: The scholarship does not exist — the fees collected from thousands of applicants are the scammer's profit.
The outcome
Carlos realized something was wrong when the scholarship requires a fee to apply, process, or disburse the award. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Never pay to apply for a scholarship — legitimate scholarships do not charge application fees. Carlos's experience shows why the scholarship requires a fee to apply, process, or disburse the award and the sponsoring organization has no verifiable history or contact information are the clearest early warning signs.
How to identify it
- The scholarship requires a fee to apply, process, or disburse the award
- The sponsoring organization has no verifiable history or contact information
- You did not apply for the scholarship but were notified you were selected
- Pause before paying, clicking, or sharing information. Scammers rely on speed.
- Verify the sender, company, or agency using a phone number or website you already know is legitimate.
- Treat secrecy, urgency, and off-platform payment requests as strong scam signals.
What to do now
- ✓Never pay to apply for a scholarship — legitimate scholarships do not charge application fees.
- ✓Verify scholarships through trusted databases like the U.S. Department of Education's free scholarship search tool.
- ✓Report fake scholarships to the FTC at reportfraud.ftc.gov.
What to save before reporting
- ✓Save the message, profile, phone number, email, or URL that was used.
- ✓Keep payment confirmations, receipts, and account alerts before you dispute or delete anything.
- ✓Write down the timeline while the details are still fresh.
- ✓Keep the full sender address, domain, attachments, and—if possible—the raw email headers.
How big is this problem
You are not alone — this scam affects millions of people.
These numbers come from government agencies and official reports. If you have been affected, know that this is a widespread problem — not something that only happens to careless people.
FTC 2024 fraud losses
Imposters
Most common FTC fraud category in 2024
FTC says imposter scams remained the most commonly reported fraud category in 2024.
History and evolution
- This scam family tends to persist because the social-engineering pressure works even when the exact scripts, platforms, and payment methods change.
- The specific packaging evolves over time, but the core pattern usually stays the same: create urgency, control the channel, and push action before verification.
- The FTC advises that any scholarship requiring an upfront fee is a scam, noting this is one of the most common education-related fraud types reported.
Recovery and follow-up
- ✓Save the messages, receipts, account alerts, and transaction details before you block or delete anything.
- ✓Report the scam through the official platform or government channel that best matches where it happened.
- ✓Never pay to apply for a scholarship — legitimate scholarships do not charge application fees.
- ✓Verify scholarships through trusted databases like the U.S. Department of Education's free scholarship search tool.
- ✓Report fake scholarships to the FTC at reportfraud.ftc.gov.
Why this pattern keeps working
Even when the story changes, most scams still use the same pressure pattern: urgency, authority, and a request to move money or data fast.
The FTC advises that any scholarship requiring an upfront fee is a scam, noting this is one of the most common education-related fraud types reported.
FTC Consumer Sentinel 2025
Where to report it
If you have been targeted by this scam, reporting it helps authorities track the pattern and protect others. United States has dedicated agencies that handle fraud reports.
ReportFraud.gov
Federal Trade Commission
Central U.S. consumer fraud reporting portal.
File an IC3 complaint
FBI Internet Crime Complaint Center
FBI portal for internet-enabled crime reports.
Start identity theft recovery
IdentityTheft.gov
Official U.S. identity theft recovery plan builder.
Explore further
Understand the bigger picture
Who is most at risk
Who this scam targets
Primary targets
High school students, College students, Parents
Geographic concentration
United States, Canada, United Kingdom
Primary channel
Email — Fake scholarship scams
Why this group is vulnerable
High school students are particularly vulnerable because this scam exploits trust in familiar brands, authority figures, and time-sensitive decisions. The rapid increase in reports suggests that awareness among this demographic remains low.
Sources and methodology
How we verify this information
OpenScam tracks scam patterns using a combination of government consumer protection databases (FTC, IC3, Action Fraud), platform-specific fraud reports, and verified consumer complaint data. Each entry is cross-referenced against at least two independent sources before publication.
Severity ratings are based on financial impact potential, reversibility of damage, and volume of reports across multiple reporting channels. Trend velocity reflects the rate of change in report volume over the most recent 90-day window.
This page was last verified on 2026-04-04. Red flags, recovery steps, and reporting resources are reviewed quarterly against current agency guidance.
Evidence and indicators
- The FTC advises that any scholarship requiring an upfront fee is a scam, noting this is one of the most common education-related fraud types reported.
Source notes
- FTC Consumer Sentinel 2025
Frequently asked questions
Common questions about application fee scholarship scam
How does the application fee scholarship scam work?+
Scammers advertise scholarships through email, social media, or websites targeting students searching for financial aid. Applicants are asked to pay a processing or application fee, typically 25 to 100 USD, before their application can be reviewed. The scholarship does not exist — the fees collected from thousands of applicants are the scammer's profit.
What are the warning signs of application fee scholarship scam?+
The scholarship requires a fee to apply, process, or disburse the award The sponsoring organization has no verifiable history or contact information You did not apply for the scholarship but were notified you were selected
What should I do if I encounter application fee scholarship scam?+
Never pay to apply for a scholarship — legitimate scholarships do not charge application fees. Verify scholarships through trusted databases like the U.S. Department of Education's free scholarship search tool. Report fake scholarships to the FTC at reportfraud.ftc.gov.
Who is most at risk for application fee scholarship scam?+
This scam primarily targets High school students, College students, Parents. It is most commonly reported in United States, Canada, United Kingdom and typically appears on Email.
Is application fee scholarship scam getting worse?+
application fee scholarship scam is currently surging — reports are increasing rapidly. It has been reported across US, CA, UK. Last updated 2026-04-04.
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Help someone avoid this scam.
Scammers succeed because people do not talk about it. If you or someone you know has been affected, there is no shame in it — it happens to millions of people every year. Share this page with friends and family so they know what to look for.