California Community Colleges Battle $13 Million 'Ghost Student' Fraud Crisis
AI-powered scammers steal millions in financial aid as institutions deploy new technologies to fight back Bottom Line Up Front California's community colleges are under siege by sophisticated fraud rings using artificial intelligence to create fake students who steal financial aid. The crisis has escalated to $13 million stolen in the past year alone — a 74% increase — with fraudulent applications now comprising 34% of all submissions. Real students are being crowded out of classes they need to graduate, while faculty spend countless hours playing detective. The state is fighting back with AI detection systems that have identified nearly 80,000 fake applications, but the technological arms race continues as criminal networks adapt faster than institutions can respond. California's community college system is grappling with an unprecedented wave of financial aid fraud, with "ghost students" — fraudulent enrollees created using artificial intelligence a...