Marketplace Tech How AI "ghost students" are stealing financial aid
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Jul 3, 2025 Sharon Lurye, a data reporter at the Associated Press, dives into the alarming rise of AI-driven financial aid fraud through ingenious scams called 'ghost students.' These fraudsters impersonate college students using stolen identities to siphon off crucial loans and grants. Lurye shares eye-opening personal stories from victims and sheds light on the challenges community colleges face as they combat this growing crisis. The conversation also touches on the ineffective measures currently in place and the urgent need for reforms.
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AI Enables "Ghost Student" Fraud
- Scammers exploit AI and online courses to impersonate students and steal financial aid money.
- They enroll as "ghost students," completing coursework briefly to collect funds then disappear.
Community Colleges Are Vulnerable Targets
- Community colleges are especially targeted due to open access policies and lower tuition costs.
- Pell Grants often fund living expenses, giving scammers more cash to steal than just tuition amounts.
Victim Struggles with Ghost Student Impact
- Victims suffer loan debt and class enrollment delays caused by ghost students.
- One woman faced identity theft loans and couldn't immediately enroll in needed community college courses.