Cybercrooks are exploiting yet another AI tactic to siphon millions from the higher education system through a new breed of sophisticated scams. In this latest AI-powered heist, scammers impersonate students and enroll them in online courses to collect financial aid.
TechSpot reports that cybercriminals are using AI-powered bots to impersonate students, enroll them in online college courses, and divert their financial aid, leaving real individuals with stolen identities and fraudulent debt. These so-called “ghost students” can complete applications, enroll in classes, participate in coursework, and even submit assignments without any human involvement. In some cases, instructors have discovered that nearly all of their students are fake, with legitimate learners locked out of required classes due to bots filling up the available slots.
The financial impact of this scam is substantial, particularly for community colleges, where lower tuition means a larger portion of grant and loan funds goes directly to students for living expenses. In 2024, California’s community colleges reported 1.2 million suspicious applications, leading to over 220,000 likely fraudulent enrollments, according to data obtained by the Associated Press. The system lost at least $11.1 million in unrecoverable financial aid in that year alone.
Poster Comment:
$316 billion deficit in one month. Gundlach says reckoning is coming. Treasury warns of crisis.
https://citizenwatchreport.com/316-billion-deficit-in-one-month-gundlach-says- reckoning-is-coming-treasury-warns-of-crisis/