Are you considering adopting EdTech solutions like a school management system, learning management system, or student information system to automate processes in your learning centre? Be aware that there are scam companies in the EdTech industry as well, just like every other business!
We’ve heard from several education business owners about how they were scammed by fake EdTech companies. Hence, we have prepared a guide to help you identify and avoid education software companies that are fraudulent.
Without delay, let’s explore the warning signs to watch out for when dealing with EdTech scam companies.
6 Red Flags of EdTech Scam Companies
To protect yourself from falling victim to EdTech scams, look for the following six warning signs before purchasing any EdTech solutions.
1. Lack of Transparency
Before you decide to work with an EdTech company to enhance your education business, make sure the company is upfront and clear with its information. Scam companies often provide inconsistent or vague details to the public, and beware of those who tempt you with extremely low prices to divert your attention from their questionable actions.
Take your time to examine their website and look for any contradictions in the information provided, like their company address or contact info. Be cautious if their contact details are missing or if they use generic email accounts like hotmail or yahoo. A legitimate school management system company will have a visible online presence with consistent and clear information across its online platforms.
2. Lacking Legal and Regulatory Compliance
Even if you have checked that the EdTech company you plan to work with has an online presence, presents consistent information, and contact details, it’s important not to stop there. You want to make sure that the company is legal and follows all the rules and regulations.
To operate as an EdTech solution provider, companies must obtain licenses and certifications. Verifying the legal status of a Malaysian business can be done through the SSM website. Also, take the time to read the company’s About Page to gather information about its history, certifications, and compliance with regulations. Another way to determine the reliability of an EdTech company is to look at affiliations with reputable industries.
3. Fake Reviews and Feedback
When you’re making a decision, it’s important to consider reviews and feedback from others. Before choosing a school management system provider, check platforms like Google Reviews, Facebook Reviews, or Capterra for feedback about the company.
If there are many negative reviews from customers, it’s likely a sign of a bad company. However, scam companies are getting smarter at faking reviews, so be cautious of short or one-word reviews such as “excellent”, “amazing”, “I like it”, etc. One good way to distinguish authentic reviews from fake ones is that they are usually detailed and sincere.
You can also ask the other education business owners for recommendations and feedback. They might know legitimate EdTech companies to work with.
4. Signing Contracts and Agreements
To protect yourself from being scammed by an EdTech company, it’s important to sign contracts and agreements carefully. Take your time to read and understand the important points before signing. Don’t rush into signing if you’re not clear about something.
If necessary, seek legal advice to ensure you fully understand the terms. Pay attention to clauses related to data privacy, intellectual property rights, and termination terms. Scam companies are skilled at using tricky language in contracts to deceive customers.
5. Implementing Data Security Measures
When searching for a reliable and trustworthy EdTech company to provide a school management system, it’s important to select one that prioritizes data security. Many fraudulent companies don’t take their customers’ data security seriously and neglect to implement data protection policies.
In Malaysia, data protection is primarily governed by the Personal Data Protection Act 2010 (‘PDPA’), which aims to safeguard personal data by imposing obligations on data users and granting certain rights to individuals regarding their personal data.
Considering the prevalence of cybercrime in today’s digital landscape, it is crucial to partner with a company that complies with the stated act and makes significant efforts to safeguard the privacy of its client’s data.
6. Poor or Non-existent Customer Support
The level of customer support provided by a company can reveal a lot about its quality. When adopting digital solutions, the beginning stage is crucial to determine whether the implementation will be effective and successful. However, this stage can be challenging as it involves learning new systems and reforming new workflows. It also affects all stakeholders, including students, parents, teachers, and admin. Hence, proper guidance and support are necessary to ensure everyone is on the same page.
Reputable software companies recognize the importance of timely and effective customer support. If an EdTech company lacks support channels, it’s advisable to avoid them.
Sticking to the six warning signs discussed in this article will help you avoid EdTech scams. Your main objective in adopting EdTech solutions is to enhance your educational businesses. Hence, it’s important to partner with reputable education software companies like AOneSchools.
With the AOneSchools school management system, education businesses are able to simplify administrative tasks, thus improving productivity. Book a free demo with us to learn more about how we can assist you!