The article details the rise of financial aid fraud in U.S. higher education, where criminals use artificial intelligence and chatbots to steal identities and fraudulently enroll as “ghost students” to collect federal and state aid. Victims often have no idea until debts appear on their credit reports. The problem is especially severe at California community colleges, which have lost millions due to the scams. In response, the U.S. Education Department introduced new ID requirements for first-time federal aid applicants and is working on better fraud detection. Staffing cuts at federal agencies may hamper efforts to fight these crimes and aid victims.
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