A widespread fraud scheme is targeting university students as a new academic year begins and student loan payments are being distributed. Scammers are using text messages, emails, and phone calls that create a false sense of urgency, claiming that bank details have been compromised or that accounts will be closed unless immediate action is taken.
The fraudulent messages typically direct students to click links leading to fake replicas of the Students Loans Company website. Once students log in through these counterfeit sites and enter their credentials and banking information, criminals gain access to their legitimate accounts. The scammers then rapidly change the bank details on the genuine student accounts to redirect loan payments to accounts they control before the fraud is detected.
According to the SLC, approximately £519,000 was lost to such scams in the previous academic year, affecting 168 students. An additional 1,100 individuals had their account details altered, though the fraud was intercepted before money was lost in most of these cases. This month alone, around £2.6 billion in maintenance support is being distributed to approximately 1.1 million students in England and Wales, making the current period particularly attractive to fraudsters.
Authorities indicate that criminals deliberately coordinate their attacks with the timing of major loan disbursements in September, January, and April—months when students are most vulnerable and when large sums are moving through the system. The SLC has emphasized that it never requests personal or financial information through email, text message, or social media channels. Students are advised to access their accounts only through the official Gov.uk website and to report suspicious communications to appropriate authorities. Victims who suspect compromise are urged to change their passwords immediately and contact the SLC, with assurances that replacement payments will be issued to cover any losses.
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