In 2024, nearly 1/3 of applications at California colleges were fraudulent, costing $13 million in lost state and federal funds. 'Ghost student' scammers are using AI to steal financial aid, federal investigators warnScammers are using artificial intelligence (AI) to steal tens of millions of dollars in college financial aid, and they're doing it by stealing identities. They enroll fake students, receive financial aid, and leave the victims on the hook to repay loans they didn't take out. In Southern California, community colleges are facing a flood of fraudulent applications generated almost effortlessly by AI. That same year, California Community Colleges saw $13 million in financial aid fraud.