$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
essay contest scam
A fake essay contest promises a large scholarship prize but collects entry fees or steals submitted essays for resale, with no real winner ever selected.
“scholarship fraud”
↑ 65.9%Key indicators
Usually targetsHigh school students
Often hitsEducators and students
Common regionUnited States
Last updated2026-04-04
Estimated impact
$640
median reported loss
Typical range$40 – $4.0K
Recovery rate~15%
Scam breakdown
1
The contest is promoted on social media with a large prize amount to attract student submissions.
2
Entry fees are collected from thousands of participants, or essays are harvested and resold to essay mills.
3
No winner is announced, or a fake winner is posted to maintain appearances.
What to do first
Research the contest sponsor before entering — legitimate contests are sponsored by known organizations and have verifiable past winners.
Related terms
fake writing contestscholarship essay scamessay competition fraudFake scholarship scamsSocial mediaSurgingHigh school studentsCollege studentsEducators and studentsUnited StatesCanadaUnited Kingdomfake writing contestscholarship essay scam
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Daniel, 20, a high school students, encountered what appeared to be a legitimate fake scholarship scams situation while using Social media. The contest is promoted on social media with a large prize amount to attract student submissions.
Step 2
What happened next was calculated: Entry fees are collected from thousands of participants, or essays are harvested and resold to essay mills.
Step 3
The pressure escalated quickly: No winner is announced, or a fake winner is posted to maintain appearances.
The outcome
Daniel realized something was wrong when the contest requires an entry fee or asks for personal information beyond what is needed for judging. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Research the contest sponsor before entering — legitimate contests are sponsored by known organizations and have verifiable past winners. Daniel's experience shows why the contest requires an entry fee or asks for personal information beyond what is needed for judging and no past winners are named or verifiable are the clearest early warning signs.
How to identify it
- The contest requires an entry fee or asks for personal information beyond what is needed for judging
- No past winners are named or verifiable
- The sponsoring organization has no online presence, reviews, or history of awarding prizes
- 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
- ✓Research the contest sponsor before entering — legitimate contests are sponsored by known organizations and have verifiable past winners.
- ✓Never pay an entry fee for a scholarship essay contest.
- ✓Verify contests through your school's guidance office or the National Scholarship Providers Association.
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.
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 BBB warns students about fake essay contests, particularly those promoted through social media with no verifiable sponsor.
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.
- ✓Research the contest sponsor before entering — legitimate contests are sponsored by known organizations and have verifiable past winners.
- ✓Never pay an entry fee for a scholarship essay contest.
- ✓Verify contests through your school's guidance office or the National Scholarship Providers Association.
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 BBB warns students about fake essay contests, particularly those promoted through social media with no verifiable sponsor.
BBB Scam Tracker 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
Geographic concentration
United States, Canada, United Kingdom
Primary channel
Social media — 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 BBB warns students about fake essay contests, particularly those promoted through social media with no verifiable sponsor.
Source notes
- BBB Scam Tracker 2025
Frequently asked questions
Common questions about essay contest scam
How does the essay contest scam work?+
The contest is promoted on social media with a large prize amount to attract student submissions. Entry fees are collected from thousands of participants, or essays are harvested and resold to essay mills. No winner is announced, or a fake winner is posted to maintain appearances.
What are the warning signs of essay contest scam?+
The contest requires an entry fee or asks for personal information beyond what is needed for judging No past winners are named or verifiable The sponsoring organization has no online presence, reviews, or history of awarding prizes
What should I do if I encounter essay contest scam?+
Research the contest sponsor before entering — legitimate contests are sponsored by known organizations and have verifiable past winners. Never pay an entry fee for a scholarship essay contest. Verify contests through your school's guidance office or the National Scholarship Providers Association.
Who is most at risk for essay contest scam?+
This scam primarily targets High school students, College students. It is most commonly reported in United States, Canada, United Kingdom and typically appears on Social media.
Is essay contest scam getting worse?+
essay contest 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.