Scammers aren’t just interested in your Social Security number and credit cards these days. They’re also snatching cash right out of your kids’ college savings accounts.
On June 27, the Connecticut Higher Education Trust (CHET), which offers the state’s 529 savings plan, announced that fraudsters had snatched $1.4 million from 21 of its CHET Direct investors, accessing users’ accounts online and making withdrawals.
Here’s the surprise: the activity occurred in accounts that previously had no online access, according to Connecticut’s deputy treasurer Larry Wilson.
“This is one reason why we encourage our account holders to establish online access as a way to enhance the security around their accounts,” he said.
The affected customers have been made whole, Wilson said.
TIAA-CREF Tuition Financing Inc. or TFI is the program manager for CHET Direct.
"TFI’s ongoing investigation and analysis found no indication that the personal information used to steal money from CHET account holders was sourced or taken from CHET’s website, from TFI or any of its associated vendors,” said Chad Peterson, a spokesman for TIAA-CREF.