Overview
- Federal education investigators report more than $350 million lost to ghost-student schemes over five years and about 200 open cases nationwide.
- In 2025, the San Diego Community College District says 43% of applications—49,674 in total—were fraudulent, with $1.07 million disbursed but $9.25 million stopped.
- California’s community colleges identified 31.4% of 2024 applications as fraudulent, with roughly $3 million in state aid and $10 million in federal aid lost.
- Scammers are using AI to mass-generate applications and even complete assignments to keep aid flowing, with digital footprints tied to rings in Bangladesh, Pakistan, Nigeria and recent Russian-language activity.
- Colleges are turning to machine-learning filters, multi-factor checks using live selfies or video, and bot defenses; Cerritos reports only one recent $5,000 breach caught quickly, while LACCD estimates about $500,000 a year to sustain protections.