Scammers Taking Advantage of Online Holiday Shoppers, Student Loan Borrowers

Rhea-AI Summary

Allstate Identity Protection's latest report highlights that nearly 10% of Americans have been victims of federal student debt forgiveness scams, with many contacted weekly. Scammers exploit the current uncertainty, charging fees for debt relief services that are free through the Department of Education. The report also warns about online holiday shopping scams, revealing that over half of victims lose up to $249, primarily through fraudulent purchases. Consumers are advised to be cautious while shopping online, especially during the holiday season.

Positive

• Allstate Identity Protection provides resources and information to help consumers avoid scams.
• The report raises awareness about prevalent scams, potentially increasing demand for protective services.

Negative

• Rising scams may indicate a worsening economic environment, impacting consumer confidence.
• Significant proportion of Americans affected by scams could strain customer trust in financial institutions.

Allstate Identity Protection cautions potential targets to be vigilant

NORTHBROOK, Ill.--(BUSINESS WIRE)-- Nearly one in ten Americans have fallen victim to scams involving federal student debt forgiveness, and two in five of these victims are being contacted at least once a week or more, according to the latest edition of Allstate Identity Protection’s “Identity Fraud in Focus” quarterly report.¹

The findings come as legal battles leave millions of student loan borrowers in limbo. Scammers are exploiting the situation by calling borrowers directly and promising to help get a student loan discharge, forgiveness, cancellation, or debt relief for a fee if the borrower ‘acts fast.’

“You don’t have to pay anyone to obtain debt relief. The application from the Department of Education is free and you can do it all yourself,” says Allstate Identity Protection Restoration Manager Vera Tolmachoff.

The most common form of contact for student loan debt relief scams is by phone. Emails and texts are also popular mediums for scammers to target victims.

Watch out for online holiday shopping scams.

This quarter’s “Identity Fraud in Focus” report also takes a look at online holiday shopping scams and finds that personal information theft is the costliest type of fraud, with over half of surveyed victims losing up to $249 dollars. The most common type of online holiday shopping scam is when someone sends money for an item, but doesn’t receive it.²

“Consumers have to be really careful over the holidays,” said Allstate Identity Protection Director of Customer Care Brian Stuart. “Watch out for prices that seem impossibly low, make sure to only shop on secure sites, and always embrace a healthy skepticism.”

When it comes to online shopping scams, nearly half of U.S. adults are worried about becoming a victim, and roughly a third claim they have been a victim of an online shopping scam in the past.

Allstate Identity Protection is committed to providing essential information, tools, and resources to help protect you from fraud. For more detailed current fraud trends, including tips on how Americans can safeguard their personal information and avoid scams, check out the full "Identity Fraud in Focus" report.

[1, 2] This poll was conducted between November 11-14, 2022 on behalf of Allstate by Morning Consult, among a national sample of 2212 adults. The interviews were conducted online, and the data were weighted to approximate a target sample of adults based on age, educational attainment, gender, race, and region. Results from the full survey have a margin of error of +/- 2%.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221215005668/en/

Alexandria Bennett

mediateam@allstate.com

847-402-5600

Source: The Allstate Corporation

FAQ

How many Americans are victims of student debt forgiveness scams according to the Allstate report?

Nearly one in ten Americans have fallen victim to these scams.

What does Allstate recommend regarding student loan debt relief?

Allstate advises that borrowers should not pay anyone for debt relief since the application process through the Department of Education is free.

What are common types of scams highlighted in the Allstate Identity Protection report?

The report highlights federal student debt forgiveness scams and online holiday shopping scams.

What is the average loss for victims of online holiday shopping scams?

Over half of surveyed victims lose up to $249 due to personal information theft.

What does Allstate suggest consumers do during holiday shopping?

Allstate suggests consumers watch for low prices, shop on secure sites, and maintain healthy skepticism.