$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
merit award notification scam
An unsolicited email or letter congratulates you on winning a merit-based scholarship you never applied for, then asks for a disbursement fee or tax payment to release the funds.
“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
Scammers send official-looking award letters by mail or email congratulating the recipient on a merit scholarship.
2
To release the funds, the recipient must pay a processing fee, tax deposit, or wire transfer fee.
3
Once the fee is paid, no scholarship is ever disbursed, and the scammer disappears.
What to do first
Remember that you cannot win a scholarship you never applied for — treat unsolicited awards as scams.
Related terms
unsolicited scholarship awardfake merit awardscholarship disbursement fee scamFake scholarship scamsMailSurgingHigh school studentsCollege studentsParentsEducators and studentsParents and familiesUnited StatesCanadaUnited Kingdomunsolicited scholarship awardfake merit award
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Patricia, 20, a high school students, encountered what appeared to be a legitimate fake scholarship scams situation while using Mail. Scammers send official-looking award letters by mail or email congratulating the recipient on a merit scholarship.
Step 2
What happened next was calculated: To release the funds, the recipient must pay a processing fee, tax deposit, or wire transfer fee.
Step 3
The pressure escalated quickly: Once the fee is paid, no scholarship is ever disbursed, and the scammer disappears.
The outcome
Patricia realized something was wrong when you received a scholarship award notification for something you never applied for. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Remember that you cannot win a scholarship you never applied for — treat unsolicited awards as scams. Patricia's experience shows why you received a scholarship award notification for something you never applied for and you must pay a fee for taxes, processing, or disbursement before receiving the money are the clearest early warning signs.
How to identify it
- You received a scholarship award notification for something you never applied for
- You must pay a fee for taxes, processing, or disbursement before receiving the money
- The award letter lacks specific details about the selection criteria or judging panel
- 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
- ✓Remember that you cannot win a scholarship you never applied for — treat unsolicited awards as scams.
- ✓Legitimate scholarships never require winners to pay fees to receive their award money.
- ✓Report the scam to the FTC and warn other students through your school.
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 FTC consistently warns that unsolicited prize and award notifications requiring upfront payment are a hallmark of advance-fee fraud.
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.
- ✓Remember that you cannot win a scholarship you never applied for — treat unsolicited awards as scams.
- ✓Legitimate scholarships never require winners to pay fees to receive their award money.
- ✓Report the scam to the FTC and warn other students through your school.
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 consistently warns that unsolicited prize and award notifications requiring upfront payment are a hallmark of advance-fee fraud.
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
Mail — 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 consistently warns that unsolicited prize and award notifications requiring upfront payment are a hallmark of advance-fee fraud.
Source notes
- FTC Consumer Sentinel 2025
Frequently asked questions
Common questions about merit award notification scam
How does the merit award notification scam work?+
Scammers send official-looking award letters by mail or email congratulating the recipient on a merit scholarship. To release the funds, the recipient must pay a processing fee, tax deposit, or wire transfer fee. Once the fee is paid, no scholarship is ever disbursed, and the scammer disappears.
What are the warning signs of merit award notification scam?+
You received a scholarship award notification for something you never applied for You must pay a fee for taxes, processing, or disbursement before receiving the money The award letter lacks specific details about the selection criteria or judging panel
What should I do if I encounter merit award notification scam?+
Remember that you cannot win a scholarship you never applied for — treat unsolicited awards as scams. Legitimate scholarships never require winners to pay fees to receive their award money. Report the scam to the FTC and warn other students through your school.
Who is most at risk for merit award notification 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 Mail.
Is merit award notification scam getting worse?+
merit award notification scam is currently surging — reports are increasing rapidly. It has been reported across US, CA, UK. Last updated 2026-04-04.
Related scams
Similar scams to watch out for
AI impersonation
↑ 34%AI voice clone family emergency scam
A caller sounds exactly like a family member in distress and pressures the victim to send money immediately before verifying the story.
What to do first
Hang up and call the family member back directly using a known number.
Targets
Parents
Seen in
U.S.
AI impersonation
↑ 34%AI school injury parent call scam
A caller with a child's cloned voice says there has been a school injury and demands immediate payment before the parent verifies the story.
What to do first
Call the school or student directly using a known number before taking any action.
Targets
Parents
Seen in
U.S.
AI impersonation
↑ 34%AI police bail demand scam
A victim hears a distressed relative followed by a fake officer who demands bail money through wire transfer or gift cards.
What to do first
Call the relative or local precinct directly using a public number.
Targets
Grandparents
Seen in
U.S.
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.