As the academic year begins, authorities are warning students about a widespread fraud scheme targeting those awaiting loan disbursements. The scam operates by sending text messages, emails, or making phone calls that appear to come from the Student Loans Company, claiming that bank details require updating or that accounts will be closed unless immediate action is taken.
The fraudulent messages direct recipients to click links leading to fake versions of the SLC website. Once students enter their login credentials and banking information on these cloned sites, criminals use that data to access their genuine accounts through the official SLC platform. The perpetrators then change the bank account details on file, redirecting the maintenance loan payment to accounts they control. According to SLC risk director Alan Balanowski, this is fundamentally a race against time, as scammers must act quickly before the fraud is discovered and stopped.
During the last academic year, 168 students lost a combined £519,000 to this fraud scheme. However, over 1,100 additional students had their account details changed without financial loss after the fraud was intercepted. This month alone, approximately £2.6 billion in maintenance support payments are being distributed to around 1.1 million students in England and Wales, with monthly payments continuing for students in Scotland and Northern Ireland.
Authorities advise students to exercise caution during peak payout periods—September, January, and April in England and Wales—when the scams are most prevalent. The Student Loans Company clarifies that it does not request personal or financial information through email, text messages, or social media platforms, nor does it provide services via WhatsApp. Students should access their accounts exclusively through the official Gov.uk website rather than clicking links in unsolicited messages. Suspected phishing emails can be reported to [email protected], while fraudulent text messages should be forwarded to 7726.
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