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AI Scammers Create 'Ghost Students' in $11M Fraud

6/11/2025

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Summary

Story summary

Financial aid fraud is on the rise, fueled by scammers leveraging artificial intelligence to create "ghost students" in online classes. In California alone, 1.2 million fraudulent applications were uncovered in 2024, leading to a staggering loss of over $11 million in aid. In response, the U.S. Education Department is tightening ID verification for new applicants to tackle this alarming trend.

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Story summary

Financial aid fraud is on the rise, fueled by scammers leveraging artificial intelligence to create "ghost students" in online classes. In California alone, 1.2 million fraudulent applications were uncovered in 2024, leading to a staggering loss of over $11 million in aid. In response, the U.S. Education Department is tightening ID verification for new applicants to tackle this alarming trend.