The New York Department of State's Division of Consumer Protection is warning families and students about increasingly sophisticated scams as they prepare for the new school year.
Consumers are urged to use caution when shopping online, where scammers may create fake websites, deceptive advertisements and AI-generated content designed to steal money and personal information.
Back-to-school shopping is the second-largest spending event of the year for many Americans, behind the holiday shopping season, according to the Department of State.
The agency cited a PwC U.S. Consumer Poll that found 73% of parents and caregivers plan to use artificial intelligence during their back-to-school shopping, including to research products, compare prices, create
budgets and find deals.
While AI can help consumers shop, scammers also can use the technology to create convincing websites, advertisements and phishing messages.
“Artificial intelligence is changing the way we shop, but it is also used as a tool to exploit consumers during one of the most expensive times of the year for parents and caregivers,” New York Secretary of State Walter T. Mosley said.
“As families make the most of the final weeks of summer, I encourage New Yorkers to do their research and use these helpful tips to protect themselves from scams while shopping for the new school year,” Mosley said.
Here are some common back-to-school scams and ways New Yorkers can protect themselves.
Common back-to-school shopping scams
According to the Division of Consumer Protection, shoppers should watch for:
- Fake websites: Scammers can create websites that closely resemble legitimate retailers, using similar logos, photos and payment options. Check URLs for unusual spellings, extra characters or unfamiliar domain extensions. Spelling and grammatical errors and suspicious-looking images also can be warning signs.
- Deceptive advertisements: Scammers may use emotional stories or advertisements to encourage consumers to make purchases. Before buying, look for reviews from sources outside the retailer's website.
- Unrealistic discounts: Extremely low prices or steep markdowns can be signs of a fraudulent website or seller. Research the seller before making a purchase.
- Phishing emails and texts: Parents and students may receive messages claiming a delivery was missed and asking them to click a link to reschedule. The links can lead to malware or fake websites designed to steal personal and payment information.
- Fake test preparation offers: As students prepare for the SAT and other exams, scammers may make unsolicited calls offering test preparation services. The College Board does not make unsolicited calls or request sensitive information such as Social Security numbers or credit card information.
- Third-party sellers: Major retailers may allow outside sellers to list products on their websites. These sellers can have different return, refund and shipping policies, so review the seller's policies before buying.
- Fake social media discounts and giveaways: Be cautious of deals advertised by unfamiliar retailers or links that lead to websites you do not recognize.
How to protect personal information
Back-to-school scams can involve more than stolen money. Scammers also may target students and parents for sensitive personal information.
Phishing emails, texts and calls may impersonate legitimate organizations and claim to involve scholarships, grants, unpaid tuition or other school-related issues. These messages may request Social Security numbers, passwords, bank account information or other personal details.
Scammers often create a sense of urgency and pressure people to act immediately. Verify the organization and independently confirm the information before providing personal details.
College students also should protect their identities as they begin the academic year. Store personal documents, checkbooks, credit card statements and other sensitive paperwork securely.
When applying for student loans or financial aid, students should not provide personal information by phone or online unless they initiated contact with the organization or have independently verified the request.
Protect children's information
Parents and caregivers should understand how schools, after-school programs and sports organizations collect and store children's personal information.
When enrolling children in programs, ask how records are protected, including whether digital records are encrypted, whether physical documents are securely stored and who has access to the information.
Parents also should question requests for a child's Social Security number when registering for activities or sports programs. If an organization asks for the number, ask why it is necessary and whether another form of identification can be used.
Tips for safer online shopping
The Division of Consumer Protection recommends that consumers:
- Review return and refund policies: Check a retailer's policies before purchasing. If a retailer does not post a refund policy, consumers generally have up to 30 days from the purchase date to receive a full refund or store credit with a receipt.
- Use a credit card when possible: Credit cards generally provide fraud protections and may offer zero-liability protection for fraudulent purchases.
- Avoid unusual payment methods: Be cautious of websites that require payment through gift cards, cash or money-transfer apps.
- Verify sellers: Review the policies of third-party sellers before purchasing through major retailers.
- Check links before clicking: Double-check unsolicited emails and texts that contain links to reschedule deliveries or claim discounts.
- Protect online accounts: Parents should talk with children about creating strong passwords, keeping social media accounts private and avoiding links or attachments from unknown senders.
The Department of State urges New Yorkers to research sellers, verify deals and avoid providing personal information to unfamiliar sources as scammers increasingly use sophisticated tactics and artificial intelligence.
How to report a consumer complaint
The New York State Division of Consumer Protection provides educational resources and voluntary mediation services between consumers and businesses.
Consumers can contact the Consumer Assistance Helpline at 1-800-697-1220, Monday through Friday from 8:30 a.m. to 4:30 p.m., excluding state holidays. Complaints also can be filed online through the Department of State's Division of Consumer Protection.
This article originally appeared on Rochester Democrat and Chronicle: New York back-to-school scams: Fake websites, AI ads and phishing texts to watch for
