Education scams and fraud awareness

Pursuing higher education is a valuable journey that leads to many opportunities. Unfortunately, it’s now more common for student Veterans to be confronted and sometimes compromised by scammers, fraudulent schools and identity thieves. These scammers prey on Veterans and beneficiaries using education benefits such as the Post-9/11 G.I. Bill, Montgomery G.I. Bill and Dependents’ Educational Assistance programs.

With the fast-growing advances in technology and the use of artificial intelligence (AI) resulting in increased fraudulent scams, VA wants to ensure you are informed about the risks of education fraud and how to make the best decisions when using your VA education benefits.

Here are some of the current scam trends affecting Veterans and education beneficiaries.

Identity and G.I. Bill account information theft

Some scams attempt to steal Veterans’ identities to fraudulently obtain education payments.

Fake schools enrolling Veterans without consent

Scammers may try to appear legitimate by using official-sounding names, logos, websites, or by showcasing a false affiliation with VA. Students should consider using the G.I. Bill Comparison Tool to find G.I. Bill-approved schools and compare benefits.

Student loan scams

Be cautious of promises offering immediate student loan forgiveness or debt cancellation.

• Student loan forgiveness: Deceptive institutions will promise immediate student loan forgiveness or debt cancellation to entice Veterans to enroll in classes. For most borrowers, loan forgiveness is only available through programs that may require many years of qualifying payments or other criteria.
• Financial Aid scams: These scams often involve exploiting federal financial aid systems alongside G.I. Bill payouts. Fraudulent institutions or bad actors deceive Veterans into enrolling in low-value or fake courses to steal their education benefits.
• Scholarship scams: Companies “guarantee” Veterans will receive a scholarship in exchange for a redemption/processing fee.

Fraudulent debt or overpayment collection notices

Fraudsters may impersonate VA employees to trick Veterans into sending money or sensitive personal information. Scammers often demand urgent payments using unconventional methods like gift cards, cryptocurrency or wire transfers to “resolve” an alleged benefit overpayment.

Unpaid college tuition

An unpaid tuition scam targeting VA education beneficiaries typically involves predatory, unaccredited or fraudulent schools that enroll Veterans using their G.I. Bill benefits, falsely bill VA for tuition, and either fail to provide the promised education or abandon the students with unexpected, unauthorized student loan debts.

Fake “guaranteed benefit increase” services

Fraudsters claim they can manipulate, expedite, or legally enhance your VA education benefits (like the G.I. Bill). These schemes are designed to steal your money, commit identity theft, or fraudulently extract federal funds.

Recruiters making false promises about employment outcomes

Fraudulent schools and recruiters may exaggerate job placement rates or guarantee unrealistic outcomes. Be vigilant of job scams utilizing job boards or advertisements targeting specific demographics, which may be misleading or fake and require personal information or money to get the job. Veterans can find free, official information about federal jobs at USAJOBS.gov, FedsHiresVets.gov, and CareerOneStop.org.

Education scams using AI

Two common AI-related scams are targeted phishing and predatory education offers.

• Targeted phishing: Targeted phishing, often called spear phishing, is a highly personalized approach in which cybercriminals use social engineering to trick individuals into handing over sensitive personal information or financial data related to their financial aid, grants or Veteran education benefits. Unlike generic scams, these attacks are highly specific and tailored to the individual being scammed, making them exceedingly difficult to detect.
• Predatory education offers: Fraudulent or unaccredited institutions deploy AI chatbots and synthetic media to pitch “guaranteed scholarships,” fake degrees, or “benefits upgrades” that require Veterans to pay upfront fees or waste their GI Bill benefits.

Be proactive and take action!

• Avoid clicking suspicious links in texts or emails.
• If you get a call pressuring you to provide personal information or take action, don’t.
• Keep copies of enrollment documents and communications
• Don’t panic. Instead, resist the pressure to act quickly!
• Monitor VA payment and enrollment activity regularly.
• Protect passwords and other credentials.
• Read contracts and enrollment agreements carefully before signing.
• Reporting fraud helps protect other Veterans and families from becoming targets of scams.
• Report suspicious communications immediately.
• Verify schools using the G.I. Bill Comparison Tool and select schools and programs that are G.I. Bill-approved.
• Use only official VA websites and communication channels for information and to make updates to your VA education benefits.

Report suspicious activity

It’s important to stay informed about fraud scams and know how to report fraud.

• If you ever have an issue with your school or training facility, you can submit feedback to VA via the G.I. Bill School Feedback Tool.
• If a Veteran is missing a VA benefit payment, identifies a discrepancy in payments, or finds suspicious activity with their direct deposit account, contact VA immediately at 1-800-827-1000. 
• Veterans who suspect they have experienced fraud can find out more and report to the appropriate agency at VSAFE.gov or by calling (833) 38V-SAFE.

Protect your benefits by staying informed

One of the best ways to stay informed about your G.I. Bill benefits is to subscribe to official VA emails. If you’re not already receiving them, opt in today to start. For more information on scams impacting Veterans’ benefits, visit VA Fraud Prevention.