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Fortune
Fortune
Amanda Gerut

Colleges have a new worry: ‘Ghost students’—AI powered fraud rings angling to get millions in financial aid

College classroom and seated students (Credit: skynesher via Getty Images)
  • Local higher-ed institutions are engaging in hand-to-hand combat to keep out fraudsters who are weaponizing AI to swarm their systems. Some are implementing new measures to keep the scammers out, from AI defense firms, to new barriers to entry, to manual application reviews.

The “ghost-student” epidemic that has been attacking California’s community college system is infesting the nation, with colleges in Arizona, Indiana, Oregon, New Jersey, and Michigan working to defend their institutions from AI-powered fraud rings trying to blend in with legitimate students heading back to school. 

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