US EditionScammers Are Using AI to Enroll Fake Students in Online Classes, Then Steal College Financial Aid
- Cybercriminals use AI-driven bots to enroll fake students in online classes and steal millions in federal financial aid, a surge reported in 2024 at California community colleges.
- Financial aid fraud has surged alongside the increased use of AI tools and the growing prevalence of online courses, with community colleges facing heightened risks from automated scams involving fictitious students.
- Victims like Heather Brady and Brittnee Nelson discovered loans and enrollments in their names for classes they never attended, while the Education Department struggles with staff losses and rising fraud.
- The U.S. Education Department has implemented a temporary rule requiring new federal student aid applicants to present a government-issued ID for identity confirmation, impacting around 125,000 borrowers amid concerns over rising fraud threatening student aid programs.
- Officials expect stronger safeguards and verifications to protect borrowers, but victims face long processes to clear debts while enforcement faces challenges from federal staffing cuts.
112 Articles
112 Articles
Cal Matters
Financial aid fraud is on the rise in California. How federal officials plan to crack down
In summary The U.S. Department of Education will begin more rigorous screening of financial aid applicants, citing instances of fraud at California’s community colleges. Faced with growing reports of fraud, the U.S. Department of Education will make it harder for certain students to access financial aid, including some who could see delays of weeks or even months before cash is disbursed. This month the department announced it would begin a new …
AI leads to rise in financial aid fraud
It was an unusual question coming from a police officer. Heather Brady was napping at home in San Francisco on a Sunday afternoon when the officer knocked on her door to ask: Had she applied to Arizona Western College?
Montana Standard
Scammers use AI to create 'ghost students,' steal aid
It was an unusual question coming from a police officer. Heather Brady was napping at home in San Francisco on a Sunday afternoon when the officer knocked on her door to ask: Had she applied to Arizona Western College?
Mason City Globe Gazette
Scammers use AI to create ‘ghost students,’ steal aid
It was an unusual question coming from a police officer. Heather Brady was napping at home in San Francisco on a Sunday afternoon when the officer knocked on her door to ask: Had she applied to Arizona Western College?
Increased ID Verification for Financial Aid Raises Questions
About 125,000 aid applicants will have their IDs checked this summer. The department says the move is necessary to protect taxpayers. College financial aid offices and students’ advocates say that a Trump administration plan to crack down on fraud in the federal aid system could burden university staff and hinder access to college programs. Although they support fighting fraud as a concept, they particularly worry that real, eligible Pell Grant …
Letters to the Editor, Week of June 14, 2025
Beware of the Latest AI Scams Dear Editor: As senior citizens with grandchildren, we are urging all grandparents to be aware of the latest scam criminals have cooked up to rob them of thousands or more dollars. Through the use of a high-tech scam that uses artificial intelligence (AI) to find their grandchildren’s voices on TikTok and then use voice-cloning software to make panicked calls pretending to be that grandchild, saying that they have b…
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