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'Ghost student' scammers are using AI to steal financial aid, federal investigators warn

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https://abc7.com/post/ghost-student-scammers-are-using-ai-steal-financial-
aid-federal-investigators-warn/18495539/

Scammers are using artificial intelligence (AI) to steal tens of millions 
of dollars in college financial aid, and they're doing it by stealing 
identities. It's part of an ABC News investigation.

Investigators are warning Americans about so-called "ghost students," an 
army of digital thieves stealing identities and using them to submit AI-
generated applications to community colleges across the country.

They enroll fake students, receive financial aid, and leave the victims on 
the hook to repay loans they didn't take out.

"These loans are not being repaid," said Jason Williams, the assistant 
inspector general for investigations at the U.S. Department of Education's 
Office of Inspector General. "They're being assigned to people (who) don't 
even know they have a debt with U.S. Department of Education... (until) 
the Internal Revenue Service says you owe the Department of Education 
money."

In Southern California, community colleges are facing a flood of 
fraudulent applications generated almost effortlessly by AI.

"These systems are able to fill out applications by the second, where in 
the past, a human being had to take 20 to 30 minutes to fill out an 
application," said Dr. Nicole Ablo-Lopez, the Deputy Chancellor of the Los 
Angeles Community College District.

Statewide, the battle is exhausting. California has 116 community colleges 
with 2.2 million full and part-time students.

In 2024, those schools found nearly a third of all applications were 
fraudulent. That same year, California Community Colleges saw $13 million 
in financial aid fraud.

Coast to coast, over the past five years, the federal government has 
investigated more than $350 million in "ghost student" fraud.

"It's a huge issue," said Williams. "Right now, we have about 200 
investigations open nationwide."

But now, some California schools say they're using AI to beat AI.

Cerritos College installed new vetting systems and live verification to 
make sure they're actually dealing with humans.

"Our latest report actually shows that only one of them was able to get 
through and seek financial aid to the cost of about $5,000, which we were 
quickly able to trace and take care of the situation," said Dr. Jose 
Fierro, President of the Cerritos Community College District.

The Los Angeles Community College District is doing the same, and says 
it's costing about half a million dollars a year to keep "ghost students" 
in check.

"They are knocking at our door, but we are no longer letting them in 
without verifying that they are, in fact, a live person," said Albo-Lopez.


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'Ghost student' scammers are using AI to steal financial aid, federal investigators warn "Leroy N. Soetoro" <leroysoetoro@americans-first.com> - 2026-02-06 22:07 +0000

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