FTC FACTS for Business

FOR THE CONSUMER 1-877-FTC-HELP

ftc.gov FEDERAL TRADE COMMISSION

BUSINESS

Avoid Fake-Degree Burns 

By Researching Academic Credentials

f you’re a hiring manager or human resources professional, chances are 

you review applications and resumes from people who want to work for 

your organization or who want to be promoted. Some applicants may 

list credentials — like a bachelor’s, master’s, or doctoral degree, or a professional 

certification — that sound credible, but in fact, were not earned through a legitimate 

course of study at an accredited institution.

Federal officials caution that some people are buying phony credentials from “diploma 

mills” — companies that sell “degrees” or certificates on the Internet without requiring 

the buyer to do anything more than pay a fee. Most diploma mills charge a flat fee, 

require little course work, if any, and award a degree based solely on “work or life 

experience.”

According to officials from the Federal Trade Commission (FTC), the Department 

of Education, and the Office of Personnel Management (OPM) bogus credentials can 

compromise your credibility — and your organization’s. You could place an unqualified 

person in a position of responsibility, leaving your organization liable if the employee’s 

actions harm someone. You could hire a person who is dishonest in other ways, exposing 

your organization and colleagues to potential damage. And if the bogus degrees are 

brought to light, you risk embarrassment.

The agencies have teamed up, putting new tools in place to help you weed out bogus 

academic credentials and insure the integrity of your hiring process.

I
Facts for Business

TELL-TALE SIGNS OF A BOGUS DEGREE

Although it’s not always easy to tell if academic 

credentials are from an accredited institution, 

the federal officials say there are clues to help 

you spot questionable credentials on a resume or 

application. Look for:

Out of Sequence Degrees. When you review 

education claims, you expect to see degrees 

earned in a traditional progression — high 

school, followed by bachelor’s, master’s, 

and doctoral or other advanced degrees. If 

an applicant claims a master’s or doctoral 

degree, but no bachelor’s degree — or if the 

applicant claims a college degree, but no 

high school diploma or General Educational 

Development (GED) diploma, consider it a 

red flag, and a likely sign of a diploma mill.

Quickie Degrees. It generally takes time to 

earn a college or advanced degree — three to 

four years for an undergraduate degree, one 

or two years for a master’s degree, and even 

longer to earn a doctorate. A degree earned 

in a very short time, or several degrees listed 

for the same year, are warning signs for 

the hiring official or the person doing the 

preliminary screening.

Degrees From Schools in Locations Different 

From the Applicant’s Job or Home. If the 

applicant worked full-time while attending 

school, check the locations of the job and the 

educational institution. If the applicant didn’t 

live where he went to school, check to see 

if the degree is from an accredited distance 

learning institution, using the steps described 

under ‘Checking Out Academic Credentials.’ 

If the degree is not from a legitimate, 

accredited distance learning institution, it 

may be from a diploma mill.

Sound-Alike Names. Some diploma mills 

use names that sound or look like those of 

well-known colleges or universities. If the 

institution has a name similar to a wellknown school, but is located in a different 

state, check on it. Should you come across a 

degree from an institution with a prestigioussounding foreign name, that calls for some 

homework, too. Researching the legitimacy 

of foreign schools can be a challenge, but 

consider it a warning sign if an applicant 

claims a degree from a country where she 

never lived.

CHECKING OUT ACADEMIC CREDENTIALS

Federal officials recommend that you always 

check academic credentials, even when the school 

they’re from is well-known. Some applicants 

may falsify information about their academic 

backgrounds rather than about their work history, 

possibly because employers are less likely to 

check with schools for verification or to require 

academic transcripts.

Here’s how to verify academic credentials:

1. Contact the school. Most college registrars 

will confirm dates of attendance and 

graduation, as well as degrees awarded and 

majors, upon request. If the applicant gives 

permission, they may provide a certified 

academic transcript. If you aren’t familiar 

with the school, don’t stop your research just 

because someone answers your questions 

on the phone or responds with a letter. 

Some diploma mills offer a “verification 

service” that will send a phony transcript to a 

prospective employer who calls.

2. Research the school on the Internet. 

Check to see if the school is accredited 

by a recognized agency. Colleges and 

universities accredited by legitimate agencies 

generally undergo a rigorous review of the 

quality of their educational programs. If a 

school has been accredited by a nationally 

recognized accrediting agency, it’s probably 

legitimate. Many diploma mills claim to be 

“accredited,” but the accreditation is from 

a bogus, but official-sounding, agency they 

invented.
Facts for Business

 You can use the Internet to check if 

a school is accredited by a legitimate 

organization at a new database of 

accredited academic institutions, posted 

by the U.S. Department of Education at 

www.ope.ed.gov/accreditation. (There are 

a few legitimate institutions that have not 

pursued accreditation.)

 To find out if an accrediting agency is 

legitimate, check the list of recognized 

national and regional accrediting agencies 

maintained by the Council for Higher 

Education Accreditation at www.chea.org.

 Look at the school’s website. Although 

it is prudent to check out the school on 

the Internet, it’s not always easy to pick 

out a diploma mill based on a quick scan 

of its site. Some diploma mills have slick 

websites, and a “dot-edu” Web address 

doesn’t guarantee legitimacy. Nevertheless, 

the website can be a source of information. 

Indeed, federal officials say it’s probably a 

diploma mill if:

● tuition is charged on a per-degree 

basis, rather than per credit, course, or 

semester

● there are few or unspecified degree 

requirements, or none at all

● the emphasis is on degrees for work or 

life experience, and

● the school is relatively new, or has 

recently changed its name.

 Check other resources. There is no 

comprehensive list of diploma mills on 

the Web because new phony credentialing 

sources arise all the time. However, the 

Oregon Student Assistance Commission’s 

Office of Degree Authorization maintains 

a list of organizations it has identified as 

diploma mills at www.osac.state.or.us/oda. 

Another way to check up on a school is 

to call the registrar of a local college or 

university and ask if it would accept transfer 

credits from the school you are researching.

3. Ask the applicant for proof of the degree 

and the school’s accreditation. If you 

don’t get satisfactory answers from the 

school itself and the accreditation sites on 

the Web, ask the applicant for proof of the 

degree, including a certified transcipt, and 

the school’s accreditation. Ultimately, it’s up 

to the applicant to show that he earned his 

credentials from a legitimate institution.

The FTC works for the consumer to prevent 

fraudulent, deceptive, and unfair business 

practices in the marketplace and to provide 

information to help consumers spot, stop, and 

avoid them. To file a complaint or to get free 

information on consumer issues, visit ftc.gov 

or call toll-free, 1-877-FTC-HELP (1-877-382-

4357); TTY: 1-866-653-4261. The FTC enters 

Internet, telemarketing, identity theft, and other 

fraud-related complaints into Consumer Sentinel, 

a secure, online database available to hundreds of 

civil and criminal law enforcement agencies in the 

U.S. and abroad.

OPM oversees the federal work force and 

provides the American public with up-to-date 

employment information. OPM also supports 

U.S. agencies with personnel services and policy 

leadership including staffing tools, guidance on 

labor-management relations and programs to 

improve work force performance.

The U.S. Department of Education establishes 

federal policy and administers and coordinates 

most federal assistance to education. It assists the 

president in executing his education policies for 

the nation and in implementing laws enacted by 

Congress. The Department’s mission is to serve 

America’s students—to ensure that all have equal 

access to education and to promote excellence in 

our nation’s schools.
Facts for Business

1-877-FTC-HELP FOR THE CONSUMER

FEDERAL TRADE COMMISSION ftc.gov

February 2005

Federal Trade Commission

Bureau of Consumer Protection

Offi ce of Consumer and Business Education

The National Small Business Ombudsman 

and 10 Regional Fairness Boards collect 

comments from small businesses about federal 

compliance and enforcement activities. Each 

year, the Ombudsman evaluates the conduct 

of these activities and rates each agency’s 

responsiveness to small businesses. Small 

businesses can comment to the Ombudsman 

without fear of reprisal. To comment, call 

toll-free 1-888-REGFAIR (1-888-734-3247) 

or go to www.sba.gov/ombudsman.