Around 1.1 million students across England and Wales are set to receive approximately £2.6 billion in maintenance loan payments, but personal finance experts are warning recipients to be vigilant against fraud.
Expert warning on scam tactics
Arielle Flynn, head of advice at UK Debt Expert, has urged students to protect their money from scammers. "With maintenance loans landing in accounts, students are more likely to act hastily if told there is a problem with their money," Flynn said.
She added: "If you receive an unexpected message, avoid clicking any links and log directly into the official GOV.UK website to check your account status."
Flynn emphasised that messages demanding action within 24 hours to prevent payment delays are designed to cause panic. "Take time to verify these requests through official channels before sharing any information," she advised.
Social media and impersonation risks
The expert warned that posting personal details online increases vulnerability. "Posting full names, addresses, dates of birth or course details can expose you to fraud," Flynn said. "Scammers collect this information from public social media profiles to impersonate students when contacting banks or loan providers."
She also cautioned against adverts and social media posts offering guaranteed hardship grants or quick financial relief, noting they "often lead to fraud." Genuine university hardship funds and official grants never require upfront processing fees or account passwords, she explained. "Verify any unusual financial offers directly with your university or the named provider," she said.
Money muling and spending advice
Flynn highlighted a specific illegal activity targeting students: money muling. "Criminals often target students with promises of quick payment in exchange for receiving and transferring money through their personal accounts," she explained. "This activity, known as money muling, is illegal."
"Allowing someone else to route money through your account can result in frozen funds, blacklisting by financial institutions and criminal prosecution. Refuse any requests to transfer money on behalf of someone else," she warned.
On budgeting, Flynn noted that maintenance loans usually arrive in large lump sums, which can make it easy to overspend at the start of term. "Working out your essential costs, including rent, bills, food and travel, can help you understand how much you have available to spend each week," she said.
She concluded: "Keeping track of your spending can also make it easier to spot anything unusual in your account, giving you another reason to regularly check your bank statements."
