Burning Madolf commented on the previous post and I was reminded to find the story behind this headline:

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Los Angeles Times

https://www.latimes.com › california › story › communi...

Jun 24, 2025 — Scammers stole more than $10 million in financial aid last year by fraudulently enrolling in California's community colleges.Read more

AI Overview

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Yes, reports indicate around 1.2 million fraudulent applications were submitted to California community colleges recently, largely due to AI-driven schemes using stolen identities, which floods online classes, blocks real students from enrolling, and steals millions in financial aid funds, prompting colleges to invest in new verification tech

. This massive influx of "ghost students" exploits the shift to online learning for easy financial aid, impacting nearly 80% of the state's campuses. 

How the Fraud Works

  1. Stolen Identities: Scammers use stolen personal information (like Social Security numbers) and AI bots to create many fake student profiles.

  2. Exploiting Online Systems: They apply through online systems like CCCApply (CCCApply), which were less robust during the pandemic's shift to remote learning.

  3. Financial Aid Fraud: Once enrolled, these fake students quickly claim financial aid, receiving $2,000-$5,000 before dropping out, costing millions.

  4. Blocking Real Students: The fake enrollments take up spots in popular online classes, preventing legitimate students from registering. 

Impact

  • Financial Losses: Millions in federal and state funds are lost to fraud.

  • Enrollment Issues: Real students can't get into needed classes.

  • System Strain: The system faces unprecedented challenges, affecting at least 90 colleges. 

Now multiply that by 50 states