Scams on the Rise in Minnesota
Minnesota has gained a reputation for being a hotspot for scammers, particularly those from Somalia.
While this problem isn’t new, many of the individuals involved have been somewhat elusive. Recently, the Trump administration has taken a closer look at the extent of this fraud under the leadership of Democratic-Farmer-Labor Governor Tim Walz.
Much of the scrutiny has centered on alleged fraudulent activities by members of the Somali community linked to pandemic relief funds. Education Secretary Linda McMahon did not hold back in her criticism of Walz, suggesting in a recent letter that he should resign over student aid fraud in the state.
“Minnesota’s political elites have turned a blind eye and even been complicit in facilitating money laundering.”
In her letter, McMahon outlined that the U.S. Department of Education became aware of issues involving fraudulent college applicants, particularly in Minnesota, who manipulated the federal education system. She referred to these perpetrators as “ghost students.” This term arises from the fact that many had dubious identification, resided outside the U.S., or, in some cases, may have never existed at all.
In Minnesota alone, over 1,800 of these ghost students reportedly received $12.5 million in taxpayer-funded aid, according to McMahon.
Earlier this year, concerns were raised by the Department of Education, pinpointing Riverland Community College and Century College in White Bear Lake as two institutions directly affected by the fraud. Local media outlets reported that Riverland had noticed more than 100 potentially fraudulent applications annually across the last two financial aid cycles.
A history professor at Century University revealed to state legislators that earlier this year, about 15% of his students seemed to be tied to organized crime. Similarly, Minnesota State University Southeast found its enrollment spike for spring 2025 included 84 ghost students. While some fraudsters were local, the majority appeared to originate from abroad.
Reportedly, these ghost students would attend classes just long enough to secure their financial aid—typically about ten days into the semester—before disappearing once the checks arrived.
“They would collect federal checks, give a small chunk to universities, and pocket the rest without ever attending classes,” McMahon remarked. “Our new anti-fraud measures have already thwarted over $1 billion in attempts at aid theft, including efforts by international fraud rings and even AI bots posing as students.”
McMahon pointed out that Walz’s lack of oversight and negligence regarding welfare matters has drawn fraudsters from around the globe, especially Somali nationals, to establish a base in the U.S.
Moreover, she contended that Walz has essentially done nothing to tackle this criminal behavior and highlighted that scammers have exploited various federal programs, including housing, education, food assistance, and aid for elderly care.
Following her criticisms, McMahon suggested that Minnesota’s political elite was not only ignoring the situation, but also actively facilitating what she termed money laundering, which should have been aimed at helping the most vulnerable in society.
Republican Tom Emmer voiced his agreement with McMahon’s assessment, labeling Walz’s actions a “catastrophic failure” and calling for him to take responsibility and pave the way for effective leadership.
As Walz prepares for a potential third term in the upcoming election, public sentiment appears to be shifting. Recent polling indicates a significant loss of confidence in his ability to manage misconduct in the state. For instance, a recent survey revealed that 69% of registered voters believe Walz needs to enhance his efforts against fraud, reflecting a 48% disapproval rate toward his performance.
During a recent press conference, Walz acknowledged the occurrence of fraud and noted, “We need to take responsibility. Ultimately, I need to take responsibility.” He declared his intention to own up to these issues fully.
The intensity of these concerns became evident following a statement from the head of the Small Business Administration, announcing an investigation into the network of Somali organizations involved in a massive fraud scheme linked to COVID-19 relief funds.
