$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
fake scholarship deadline scam
Scammers contact students claiming they have won or been selected for a scholarship but must pay processing fees or provide personal information by an urgent deadline to claim it.
“back to school scam”
↑ 202%Key indicators
Usually targetsHigh school seniors
Often hitsFreelancers and contractors
Common regionUnited States
Last updated2026-04-04
Estimated impact
$960
median reported loss
Typical range$60 – $6.0K
Recovery rate~15%
Scam breakdown
1
Scammers email or call students claiming they have been selected for a prestigious scholarship, creating urgency with an expiring deadline.
2
To claim the funds, students are asked to pay a processing fee, tax withholding, or provide bank account details for direct deposit.
3
After payment, the scholarship is never disbursed, and the student's personal information may be used for additional fraud.
What to do first
Legitimate scholarships never require application or processing fees — any request for payment is a scam.
Related terms
scholarship fee scamfake scholarship awardBack-to-school scamsEmailRisingHigh school seniorsCollege studentsParentsFreelancers and contractorsSmall business ownersPayroll, HR, and finance teamsUnited StatesCanadascholarship fee scamfake scholarship award
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Jennifer, 72, a high school seniors, encountered what appeared to be a legitimate back-to-school scams situation while using Email. Scammers email or call students claiming they have been selected for a prestigious scholarship, creating urgency with an expiring deadline.
Step 2
What happened next was calculated: To claim the funds, students are asked to pay a processing fee, tax withholding, or provide bank account details for direct deposit.
Step 3
The pressure escalated quickly: After payment, the scholarship is never disbursed, and the student's personal information may be used for additional fraud.
The outcome
Jennifer realized something was wrong when you are told you won a scholarship you never applied for. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Legitimate scholarships never require application or processing fees — any request for payment is a scam. Jennifer's experience shows why you are told you won a scholarship you never applied for and scholarship requires an application or processing fee to claim are the clearest early warning signs.
How to identify it
- You are told you won a scholarship you never applied for
- Scholarship requires an application or processing fee to claim
- Urgent deadline pressures you to act before you can verify the offer
- 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
- ✓Legitimate scholarships never require application or processing fees — any request for payment is a scam.
- ✓Verify scholarship offers through your school's financial aid office or at studentaid.gov.
- ✓Report scholarship scams to the FTC at reportfraud.ftc.gov and the scholarship platform if applicable.
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 reported that scholarship and grant scams cost students and families over 40 million dollars in 2024, with complaints peaking in March through September.
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.
- ✓Legitimate scholarships never require application or processing fees — any request for payment is a scam.
- ✓Verify scholarship offers through your school's financial aid office or at studentaid.gov.
- ✓Report scholarship scams to the FTC at reportfraud.ftc.gov and the scholarship platform if applicable.
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 reported that scholarship and grant scams cost students and families over 40 million dollars in 2024, with complaints peaking in March through September.
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 seniors, College students, Parents
Geographic concentration
United States, Canada
Primary channel
Email — Back-to-school scams
Why this group is vulnerable
High school seniors are particularly vulnerable because this scam exploits trust in familiar brands, authority figures, and time-sensitive decisions. The growing number of 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 reported that scholarship and grant scams cost students and families over 40 million dollars in 2024, with complaints peaking in March through September.
Source notes
- FTC Consumer Sentinel 2025
Frequently asked questions
Common questions about fake scholarship deadline scam
How does the fake scholarship deadline scam work?+
Scammers email or call students claiming they have been selected for a prestigious scholarship, creating urgency with an expiring deadline. To claim the funds, students are asked to pay a processing fee, tax withholding, or provide bank account details for direct deposit. After payment, the scholarship is never disbursed, and the student's personal information may be used for additional fraud.
What are the warning signs of fake scholarship deadline scam?+
You are told you won a scholarship you never applied for Scholarship requires an application or processing fee to claim Urgent deadline pressures you to act before you can verify the offer
What should I do if I encounter fake scholarship deadline scam?+
Legitimate scholarships never require application or processing fees — any request for payment is a scam. Verify scholarship offers through your school's financial aid office or at studentaid.gov. Report scholarship scams to the FTC at reportfraud.ftc.gov and the scholarship platform if applicable.
Who is most at risk for fake scholarship deadline scam?+
This scam primarily targets High school seniors, College students, Parents. It is most commonly reported in United States, Canada and typically appears on Email.
Is fake scholarship deadline scam on the rise?+
fake scholarship deadline scam is currently on the rise with growing reports. It has been reported across US, CA. 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.