Sketchy Scholarships & Scams: How to Spot Them
We know that paying for college is a challenge for many families, and that scholarships are a fantastic way to make getting that degree more attainable.
At the same time, the increased demand for scholarships has also attracted scammers looking to take advantage of hopeful students.
These scholarship scams or “sketchy scholarships” often promise “easy” money in exchange for a fee or personal information, leaving you without the aid you were seeking and even in some financial trouble or with an identity theft risk.
In this article, we’re showing you how to recognize, avoid, and report scholarship scams to protect you and your family’s financial future.
Quick checklist: Is this scholarship real?
Ask yourself these questions before sharing any info:
Do they ask for payment?
Legit scholarships never charge fees to apply. Be wary of “processing fees,” “handling charges,” or any payment to claim an award.
Do they guarantee you’ll “win?”
No reputable scholarship promises money. Anything saying “guaranteed” or “pre-selected” is a red flag.
Are they asking for bank or credit card info?
Never share account details to “hold” a scholarship. That’s a scam.
Do they pressure you to act fast?
Scammers often use urgency: “Act now or lose your scholarship.”
Is the organization unclear or unverified?
Real scholarships come from colleges, foundations, or well-known nonprofits. Check websites and verify contact info.
Did this come out of the blue?
Emails or calls claiming you’ve won a scholarship you didn’t apply for are almost always scams.
If any of these apply, pause and double-check before giving out personal information.
Red-Flag Words to Watch For
Think of these phrases as instant warning lights. If you see them, slow down.
Safe Next Steps
If something feels off, here’s what to do instead:
- Stop and verifyLook up the organization’s official website and see if you can confirm their legitimacy. Search for reviews or complaints online.
- Use trusted scholarship search tools
- Appily Scholarship Search
- College Board Scholarship Search
- EducationUSA (for international students)
- Protect your personal informationNever share Social Security numbers, bank accounts, or credit card details until you’re certain a scholarship is legitimate.
- Report suspicious offersContact the FTC or your school’s financial aid office if something seems fraudulent.
Reputable search sites
One of the best ways to avoid scholarship scams is to search through vetted scholarship lists. Appily's scholarship search engine allows you to search our database of opportunities tailored to your situation.
What to do if you’ve been targeted
Despite your best efforts, you may still encounter a scholarship scam while searching for college aid. If you do run into a scam, or what you suspect to be a scam, there are several agencies to which you can report the company:
- Federal Trade Commission
- Your state attorney general's office
- Better Business Bureau
- Your state bureau of consumer protection
- National Fraud Information Center
If you are unsure whether you have encountered a scholarship scam or should report it, talk with your school's financial aid counselor, guidance counselor, or academic advisor for advice.
You can read more about scholarship scams on the following pages: the Federal Trade Commission (FTC)'s "Scholarship and Financial Aid Scams," the College Board's "How to Spot Scholarship Scams," and the Better Business Bureau (BBB)'s "Avoiding Scholarship Scams."
Don't give up on your scholarship search
Many families believe that scholarships are a scam. They apply and apply and never win any money. They see promises of massive awards and wonder if winning a scholarship is even possible.
But scholarships can open doors to higher education if you know where to look, how to apply, and what to avoid. By recognizing the red flags and knowing the right places to find scholarships, you can help ensure that your family’s search for college funding stays safe and fruitful.
Remember, any offer that seems too good to be true probably is. Stick with reputable sources, avoid paying any fees, and always verify before you apply. With a careful approach, you’ll be well on your way to finding legitimate scholarship opportunities.
Search Appily's scholarships database
Now that you know what to look out for, it's time to get busy finding that free money for college. Appily's scholarship database is where you should start. We have millions of dollars worth of scholarships you can apply for to help bring down the cost of college, and they've all been vetted, so they're legit and scam-free.
Click the button below to create a free account and get personalized scholarship matches today! Even better, you'll automatically be entered for the Appily $1,000 Easy Money Scholarship, which is awarded monthly.
FAQs about scholarship scams
How can I tell if a scholarship is a scam?
Start with a quick check:
- Are they asking you to pay a fee?
- Are they guaranteeing you’ll win?
- Are they asking for bank or credit card information?
If the answer to any of those is yes, it’s likely a scam. Legitimate scholarships don’t charge money or promise awards.
Do real scholarships ever require a fee?
No. Real scholarships are free to apply for.
If you’re asked to pay a “processing fee,” “application fee,” or anything similar, that’s a red flag.
What should I do if I get a suspicious scholarship offer?
Pause before responding. Then:
- Look up the organization independently
- Check their official website
- Search for reviews or complaints
If you’re still unsure, ask a school counselor or financial aid office for a second opinion.
Is it safe to give personal information for a scholarship?
You should be cautious. Basic information (like your name, school, or GPA) is usually fine. But you should never share sensitive details like:
- Social Security number
- Bank account or credit card information
until you’ve confirmed the scholarship is legitimate.
Are emails saying I “won” a scholarship real?
Usually not, especially if you didn’t apply.
Unsolicited messages claiming you’ve already won money are one of the most common types of scholarship scams.
Where can I find legitimate scholarships?
Stick to trusted sources, like:
- College and university financial aid pages
- Well-known scholarship databases (like Appily)
- School counselors or advisors
These are much safer than random ads or unsolicited messages.
Can international students be targeted by scholarship scams?
Yes. In fact, international students are often targeted because financial aid options can be more limited.
That’s why it’s especially important to verify any scholarship before applying or sharing information.
What should I do if I already shared information with a scam?
Act quickly:
- Stop all communication with the organization
- Monitor your accounts for unusual activity
- Report the situation to your school or the FTC
The sooner you act, the better you can protect yourself.
Why do scholarship scams exist?
Scammers are usually trying to:
- collect personal information (identity theft)
- get payment through fake fees
That’s why it’s important to slow down and double-check anything that feels off.
What’s the safest way to approach scholarships?
Use this simple rule: if it feels rushed, guaranteed, or requires payment, stop and verify.
Taking a few extra minutes to check can save you a lot of stress later.
