Key points:
- Identity theft can haunt students long after they’ve graduated
- The future of cybersecurity and privacy
- How to prioritize data protection this school year
- For more news on data security, visit eCN’s Cybersecurity hub
Ten years ago, educational institutions were primarily focused on addressing physical fraud such as misplaced student IDs, stolen personal documents, or campus theft. But in today’s digital era, the nature of fraud has evolved dramatically, and schools now are contending with increasingly complex cyber threats that carry much heavier consequences.
Today’s students are at greater risk of identity theft than ever before. Data from the Better Business Bureau (BBB) shows a rise in online scams, with students particularly susceptible to employment, investment, and online purchase fraud. The combination of new financial responsibilities–credit cards, loans and increased online spending–creates a ripe environment for scammers. Without adequate knowledge and safeguards in place, the repercussions of falling victim to these schemes can affect students long after they graduate.
College students’ unique financial circumstances make them vulnerable to identity theft
College life introduces a wave of new financial responsibilities. Many students are signing up for their first credit cards, applying for student loans, and handling larger amounts of money than they’re used to. This financial naiveté often makes students ideal targets for identity theft.
Inexperience with managing finances, coupled with a growing reliance on online platforms, leaves students exposed to phishing attacks, fraudulent job offers, and misleading online purchase opportunities. Students might not recognize red flags, such as unsolicited job offers that ask for personal information upfront or “too good to be true” investment opportunities.
For example, a seemingly legitimate part-time job offer could ask for a Social Security number and bank details for direct deposit–only for the student to later find their identity stolen and their accounts drained. According to the BBB, employment scams targeting college students are one of the most prevalent forms of fraud. Scammers often post fake job listings on platforms frequently used by students, offering flexible part-time work that seems perfect for busy academic schedules, but that ultimately results in stolen personal information and financial loss.
Similarly, when students turn to online marketplaces to find affordable school supplies or electronics, scammers can prey on their need for quick, budget-friendly deals. Fraudsters may advertise inexpensive items but disappear once payments are made, leaving students without their purchases and at a financial loss.
The long-term consequences of identity theft for students
The effects of identity theft can haunt students long after they’ve graduated. Having their identities stolen can lead to significant financial setbacks, including:
- Damaged credit scores: A poor credit score can hinder a student’s ability to apply for loans, rent an apartment, or even secure a job. Repairing a damaged score can take years.
- Accumulation of debt: Scammers can open credit accounts, take out loans, or make large purchases in a student’s name, leaving them with substantial debt. This financial burden can add stress to a student’s already challenging academic life.
- Time-consuming recovery process: Beyond the financial consequences, the process of reporting and resolving identity theft can be complex and time-consuming. Students may need to spend significant time contacting financial institutions, credit bureaus, and law enforcement to restore their accounts and clear fraudulent activity. This not only disrupts their academic focus but also adds additional stress as they work to regain control of their financial identity.
Strategies schools can use to educate and protect students
Colleges and universities play a critical role in safeguarding their students from these scams. Educational programs, easily accessible resources, and stronger cybersecurity measures can make a significant impact in reducing students’ vulnerability to identity theft. Here are a few strategies schools should consider implementing:
- Raise awareness and teach best practices: Hosting workshops, providing digital resources, and offering seminars can teach students how to identify phishing scams, minimize the risks associated with sharing sensitive information, and establish strong, secure passwords. By increasing awareness of these threats, universities can reduce the likelihood of students falling victim to common scams.
- Adopt security technologies: To protect student data, universities should prioritize the use of advanced cybersecurity systems. Multi-factor authentication (MFA), encrypted communications, and routine security assessments are just a few measures that can limit unauthorized access to sensitive student information. Investing in these technologies can greatly minimize the chances of data breaches and unauthorized activity.
- Leverage biometric identity verification: To further strengthen security protocols, universities can incorporate biometric identification solutions. This prevents the creation of fraudulent student profiles and adds protection for legitimate students. For instance, requiring students to verify their identity through biometric data (like a photo of their government-issued ID paired with a live selfie) at account setup ensures authenticity. Additionally, re-authenticating with biometrics for sensitive actions–like changing passwords or making financial transactions–provides an extra layer of defense against account takeover.
- Offer support for identity theft victims: Should a student fall victim to identity theft, it’s crucial for universities to have resources readily available to assist them. Providing access to legal help, credit monitoring, and counseling can help affected students recover more easily and quickly.
With these support structures in place, universities can help mitigate long-term consequences and reduce the burden on students as they work to restore their financial security.
The road ahead
By establishing robust support systems, universities can lessen the long-term impact of identity theft on their students, creating a safer environment where students can focus on their academic pursuits without the constant worry of fraud. These proactive measures not only protect students but also enhance the institution’s reputation, fostering trust and strengthening relationships with current students and alumni. In the long run, this commitment to student safety and education will position universities as leaders in creating a secure academic community, ultimately benefiting both the students and the institution itself.
As Chief Product and Technology Officer, Bala Kumar is responsible for all aspects of Jumio’s innovation and platform vision, strategy and technology execution. A former TransUnion executive, he brings more than two decades of product innovation and leadership experience to Jumio.
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