Across U.S. colleges, criminal networks are exploiting AI to flood enrollment systems with thousands of fake “ghost” students, using stolen or fabricated identities to secure financial aid and college-issued email addresses. These fraudulent enrollments clog registration systems, block real students from classes, and siphon millions in funds, leaving institutions scrambling to respond.
Jeannie Kim, president of Santiago Canyon College in California, faced this crisis firsthand. “We were hit hard last fall,” she told Fortune. “Fake students filled our waitlists and classrooms, preventing real students from enrolling in the courses they needed.” Kim’s team partnered with an AI firm to strengthen defenses, dropping over 10,000 fraudulent enrollments. By spring 2025, ghost student numbers fell from 14,000 to under 3,000.
The Ghost Student Epidemic
Sophisticated fraud rings use AI to create “synthetic” students, often striking at night to overwhelm college registration portals. These ghost students enroll, apply for financial aid, and sometimes submit AI-generated homework to maintain their ruse long enough to collect funds before vanishing. The scale is staggering: Jordan Burris of Socure, an identity-verification firm, told Fortune that 20% to 60% of applicants at some schools are fraudulent. “It’s like a digital poltergeist haunting enrollment systems,” Burris said.
Sophisticated fraud rings use AI to create “synthetic” students, often striking at night to overwhelm college registration portals. These ghost students enroll, apply for financial aid, and sometimes submit AI-generated homework to maintain their ruse long enough to collect funds before vanishing. The scale is staggering: Jordan Burris of Socure, an identity-verification firm, told Fortune that 20% to 60% of applicants at some schools are fraudulent. “It’s like a digital poltergeist haunting enrollment systems,” Burris said.
One college traced over 400 financial aid applications to a few recycled phone numbers. The Department of Education (DOE) reported $90 million in aid misdirected to ineligible students, including $30 million tied to deceased individuals’ identities. In response, the DOE now requires colleges to verify first-time FAFSA applicants’ identities, as nearly 150,000 suspect identities were detected.
“Every dollar stolen by a ghost student is a dollar taken from a real student,” Burris emphasized. “It’s a misallocation of public funds we can’t afford.”
Precision Attacks on Vulnerable Systems
Scammers target colleges during off-hours or high-pressure periods like holidays and enrollment deadlines, when staff are stretched thin. Laqwacia Simpkins of AMSimpkins & Associates, an edtech firm, explained that fraudsters flood systems with thousands of applications simultaneously, exploiting staff who lack fraud-detection training. “Admissions counselors focus on access, not policing fraud,” Simpkins noted, making colleges easy targets.
Scammers target colleges during off-hours or high-pressure periods like holidays and enrollment deadlines, when staff are stretched thin. Laqwacia Simpkins of AMSimpkins & Associates, an edtech firm, explained that fraudsters flood systems with thousands of applications simultaneously, exploiting staff who lack fraud-detection training. “Admissions counselors focus on access, not policing fraud,” Simpkins noted, making colleges easy targets.
At Chaffey Community College, Bryce Pustos recalled faculty waking up to fully enrolled classes and waitlists overnight. Michael Fink, the college’s chief technology officer, described attacks unfolding in seconds, with 50 applications filed in two seconds or entire classes filled in a minute.
Targeting Open-Access Institutions
Community colleges, designed for accessibility with minimal entry barriers, are prime targets. Fraudsters exploit their open-admission policies and free applications. Burris noted that these schemes have evolved from small-scale scams to organized crime, with international rings operating from countries like Japan, Vietnam, and Pakistan. They target high-credit, online courses like social sciences to maximize financial aid payouts.
Community colleges, designed for accessibility with minimal entry barriers, are prime targets. Fraudsters exploit their open-admission policies and free applications. Burris noted that these schemes have evolved from small-scale scams to organized crime, with international rings operating from countries like Japan, Vietnam, and Pakistan. They target high-credit, online courses like social sciences to maximize financial aid payouts.
Merced College removed half of its 15,000 initial spring registrations as fraudulent, with 20% of a subsequent 7,500 flagged. The human toll is significant: real students lose access to critical classes, disrupting their education, work, and childcare plans. “When fake students take seats, real students face barriers,” Pustos said.
Evolving Tactics and Countermeasures
Scammers adapt quickly, using stolen U.S. identities or disposable email addresses created minutes before applying. A college-issued .edu email address, described by Maurice Simpkins as “like a gold bar,” grants fraudsters legitimacy for student discounts or to order equipment shipped overseas. Some use local IP addresses from abandoned buildings to mask their origins.
Scammers adapt quickly, using stolen U.S. identities or disposable email addresses created minutes before applying. A college-issued .edu email address, described by Maurice Simpkins as “like a gold bar,” grants fraudsters legitimacy for student discounts or to order equipment shipped overseas. Some use local IP addresses from abandoned buildings to mask their origins.
Colleges are fighting back with AI-driven fraud detection. Merced College now blocks ghost applicants at multiple stages, while faculty assign first-day homework to catch AI-generated submissions, often identical across fake students. “Scammers are innovative and keep improving,” said Mike McCandless of Merced. “It’s a multimillion-dollar scheme.”
A Threat to Educational Access
The DOE calls this fraud a threat to federal student aid programs, with Secretary Linda McMahon emphasizing the need to protect eligible students and taxpayer funds. However, colleges face a balancing act. Jesse Gonzalez of Rancho Santiago Community College District noted that excessive barriers could exclude vulnerable or undocumented students. Kim echoed this concern: “Our mission to provide open-access education is at risk when bad actors turn our system into their piggy bank.”
The DOE calls this fraud a threat to federal student aid programs, with Secretary Linda McMahon emphasizing the need to protect eligible students and taxpayer funds. However, colleges face a balancing act. Jesse Gonzalez of Rancho Santiago Community College District noted that excessive barriers could exclude vulnerable or undocumented students. Kim echoed this concern: “Our mission to provide open-access education is at risk when bad actors turn our system into their piggy bank.”
Colleges are refining algorithms to detect fraud, flagging identical addresses, similar emails, or recently created accounts, while striving to preserve access for legitimate students. As fraudsters evolve, institutions must stay vigilant to protect both their resources and their commitment to equitable education.