KHEAA Attorney General Warns Kyians of New Threat of Scams Involving Student Loan Applications
Authorities are alerting Kentucky consumers to identity theft scam involving student loan and financial aid applications.
The Kentucky Attorney General’s Office and the Kentucky Higher Education Assistance Authority (KHEAA) have seen an increase in scammers attempting to apply for student loans and financial aid using fraudulently obtained personal information including names, addresses and social security numbers. The scammer may attempt to obtain the funds from education loans and then spend them for other purposes.
Loan identity theft scams can damage credit history and potentially make a consumer responsible for repaying the loan. Fortunately, no fraudulent student loans have been paid directly to the crooks through the KHEAA.
âAs technology evolves, it becomes easier for crooks to implement impersonation schemes and take advantage of the personal information of others, and student loan scams are frequently used to perpetrate this type. of fraud, âKentucky Attorney General Daniel Cameron said. “We urge consumers to closely and regularly monitor their credit reports and immediately report to our office ag.ky.gov/scams and KHEAA any suspicion of identity theft involving student loans.”
There are many checks in place with KHEAA and its suppliers and school partners to ensure that no scammer is able to obtain fraudulent funds. Immediately after identifying an attempted fraudulent activity involving a consumer’s personal information, KHEAA stops the application process and begins the process to remove the invalid entry from the consumer’s credit report.
âWe are happy to work with the Attorney General’s office and prevent any loans from being issued as a result of identity theft. KHEAA places the highest importance on protecting the accuracy and validity of a consumer’s credit information, âsaid Eugene Hutchins, Executive Director of KHEAA.
If you believe you are a victim of identity theft, the Attorney General’s Office and KHEAA recommend following these tips:
â¢ act quickly. Recovery after identity theft is usually easier if you act as soon as you learn that you are a victim.
â¢ Report it. Report suspected identity theft to the Attorney General’s office at ag.ky.gov/scams and to the Federal Trade Commission (FTC) at www.identitytheft.gov.
â¢ Monitor your credit. Place a free fraud alert on your credit report by contacting the major credit reporting agencies (Experian, TransUnion, and Equifax) and carefully review your credit report. You are entitled to a free report from each major credit reporting agency each year, which you can access by visiting annualcreditreport.com. Due to the increase in fraud during the COVID pandemic, consumers are currently entitled to a free weekly credit report.
The FTC maintains an identity theft website with additional resources for victims of identity theft. You can also visit ag.ky.gov/identity-theft for more information.
Attorney General’s Office