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AG warns about student loan application scams By Elizabeth Kuhn Frankfort, KY - Attorney General Daniel Cameron and the Kentucky Higher Education Assistance Authority (KHEAA) joined forces today to alert Kentucky consumers about an identity theft scam involving student loan and financial aid applications. The Attorney General's Office and KHEAA have seen an uptick 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 education loan funds and then spend the funds on other purposes. Loan identity theft scams can damage your credit history and potentially make a consumer liable for repaying the loan. Fortunately, no fraudulent student loans have been disbursed directly to scammers through KHEAA. There are numerous controls in place with KHEAA and its vendors and school partners to ensure no scammer is able to secure fraudulent funds. Immediately upon identification of attempted fraudulent activity regarding a consumer's personal information, KHEAA halts the application process and begins the process to remove the invalid entry from the consumer's credit report. "As technology evolves, it's becoming easier for scammers to carry out identity theft schemes and profit from the personal information of others, and student loan scams are frequently used to perpetrate this type of fraud," said Attorney General Cameron. "We urge consumers to closely and regularly monitor their credit reports, and report suspected identity theft involving student loans to our office immediately at ag.ky.gov/scams and to the KHEAA." "We are pleased to be working with the Attorney General's office and to prevent any loan from being issued as a result of identity theft. KHEAA places the highest value on protecting the accuracy and validity of a consumer's credit information," noted KHEAA Executive Director Eugene Hutchins. If you suspect you are the victim of identity theft, the Attorney General's Office and KHEAA recommend following these tips:
This story was posted on 2021-08-11 08:30:29
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