FTC Cracks Down on Student Loan Fraudsters
This week, the FTC shut down several student loan repayment schemes which stole approximately $12 million from debtors, many of whom were low-income. The companies in question promised to provide borrowers with loan forgiveness and claimed that they were affiliated with the Department of Education or other government programs. Instead of helping students pay back their loans, the companies illegally collected advance fees and pocketed the payments.
While these particular companies appear to have reached their victims over the phone, CfA’s Tech Transparency Project found that Google allowed similar student loan scams to place ads in search results for phrases like “student loan repayment” and “Biden loan forgiveness.” While the FTC’s enforcement actions are encouraging, it’s important that scammers be prevented from running advertisements in the first place. Just in the past month, Google has been accused of running search ads for crypto scams, fake trademark websites, and “free credit report” pages designed to mislead people into paying for additional services. At the end of the day, bad actors will keep taking advantage of Google’s ad platform until the company is forced to strengthen its screening process.
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