A scammer recently went to an alarming extreme in an attempt to exploit federal and state student loans by stealing the identity of a young man killed in the September 11, 2001, terrorist attacks.
This incident sheds light on a growing issue: “ghost students.” This term refers to fraudulent schemes where individuals create fake student profiles, often using the identities of deceased individuals, to illegally obtain student aid. A professor from a community college, Kim Rich, stumbled upon one such case when she found a student in her class was actually a 24-year-old victim of the 9/11 attacks, as reported by Open the Books.
“Upon realizing this, I quickly confirmed it online,” Rich recounted. “Just a few clicks showed me this person was a 9/11 victim. It was heartbreaking and infuriating at the same time.”
Rich, who has been addressing the issue of fake students for several semesters, mentioned that another ghost student she identified had impersonated a high-level executive from Portugal.
Documents revealed that both individuals had been receiving financial aid. The situation with ghost students is indicative of a larger problem, with Education Secretary Linda McMahon estimating that taxpayers lose around $1 billion annually due to similar fraud. Reports indicate that around 34% of applicants at California community colleges may fall victim to these scams.
The president of the university acknowledged efforts to tackle the issue, yet Rich contended that these attempts have not been fruitful. “I’d be surprised if my class was the only one facing this problem,” she added. “If I could, I’d remove dozens of students from my roster.”
Rich found that several fake student profiles contained glaring errors like duplicate names and odd symbols. In one semester, over half the students in her class were found to be fakes. Some of these fraudulent accounts appeared to be linked to international criminal networks.
Rich suggested that, conservatively speaking, at least $20 million in federal aid could be misappropriated each semester, based on the enrollment of even one ghost student per online class in the Los Angeles Community College District. “Honestly, I think that’s a gross underestimate,” she remarked.
The impact of ghost students extends beyond financial losses; they also occupy seats in actual classes, denying genuine students access to education. In April, California’s entire Republican congressional delegation urged the Secretary of Education and the Attorney General to combat this issue, describing it as a severe misuse of public funds.
The letter emphasized the need for transparent investigations and regular updates to the public to mitigate this waste and restore trust in educational institutions. The state has since audited three community colleges in response.
This problem isn’t limited to California; other states are facing their own challenges. For instance, Minnesota recently identified over 7,000 potential fraudulent applications, with similar cases reported in Texas, Michigan, Oregon, New Jersey, and New York.
“These scammers are robbing taxpayers twice,” commented John Hart, CEO of Open the Books. “While fraud continues unabated, genuine students are left without the financial aid and classroom opportunities they desperately need. It may be time for agencies better positioned to identify such fraud to manage these federal funds more effectively.”
