Universities students are being targeted by mobile phone fraudsters who are using the lure of smartphones and cash incentives to steal their identities and bank account details.

Students are reportedly being offered cash incentives if they register for lengthy smartphone contracts, and send on the devices and SIM cards they receive to a private company.

The victims are also promised a modest monthly income if they comply, but instead the students who've got involved are now running up large debts.

The National Mobile Phone Crime Unit (NMPCU) said this is because the victims are likely to have passed on details about their bank accounts, credit or debit cards and personal circumstances to the fraudsters.

As a result, the NMPCU is now ordering universities across the country to flag the issue to their students to prevent others from falling foul of the scam.

Detective Inspector Louise Shea, who is leading the investigation at NMPCU, said officers are working closely with mobile operators and universities to bring those responsible to justice.

"We understand that this matter will be of considerable concern to the students and family members affected as they will be accruing significant debts. We are committed to ensuring that those engaged in fraudulent activity do not escape justice," said Shea.