The Rise of Ghost Students: AI-Fueled Fraud in Higher Education

Colleges across the United States are facing an alarming increase in "ghost students"—fraudulent applicants who infiltrate online enrollment systems, collect financial aid, and vanish before delivering any academic engagement. The problem, fueled by advances in artificial intelligence and weaknesses in identity verification processes, is undermining trust, misdirecting resources, and placing real students at risk.

What Is a Ghost Student?

A ghost student is not simply someone who drops out. These are fully fabricated identities—sometimes based on stolen personal information, sometimes entirely synthetic—created to fraudulently enroll in colleges. Fraudsters use AI tools to generate admissions essays, forge transcripts, and even produce deepfake images and videos for identity verification.

Once enrolled, ghost students typically sign up for online courses, complete minimal coursework to stay active long enough to qualify for financial aid, and then disappear once funds are disbursed.

Scope and Impact

The scale of the problem is significant and growing:

• California community colleges flagged approximately 460,000 suspicious applications in a single year—nearly 20% of the total—resulting in more than $11 million in fraudulent aid disbursements.

• The College of Southern Nevada reported losing $7.4 million to ghost student fraud in one semester.

• At Century College in Minnesota, instructors discovered that roughly 15% of students in a single course were fake enrollees.

• California's overall community college system reported over $13 million in financial aid losses in a single year due to such schemes—a 74% increase from the previous year.

The consequences extend beyond financial loss. Course seats are blocked from legitimate students. Faculty spend hours identifying and reporting ghost students. Institutional data becomes unreliable. Most importantly, public trust in higher education systems is eroded.

Why Now?

Several developments have enabled this rise in fraud:

1. The shift to online learning during the pandemic decreased opportunities for in-person identity verification.

2. AI tools—such as large language models, AI voice generators, and synthetic video platforms—allow fraudsters to create highly convincing fake identities at scale.

3. Open-access policies at many institutions, particularly community colleges, allow applications to be submitted with minimal verification.

4. Budget cuts and staff shortages have left many colleges without the resources to identify and remove fake students in a timely manner.

How Institutions Are Responding

Colleges and universities are implementing multiple strategies to fight back:

Identity Verification Tools
Some institutions now require government-issued IDs matched with biometric verification—such as real-time selfies with liveness detection—to confirm applicants' identities.

Faculty-Led Screening
Instructors are being encouraged to require early student engagement via Zoom, video introductions, or synchronous activities to confirm that enrolled students are real individuals.

Policy and Federal Support
The U.S. Department of Education will soon require live ID verification for flagged FAFSA applicants. Some states, such as California, are considering application fees or more robust identity checks at the enrollment stage.

AI-Driven Pattern Detection
Tools like LightLeap.AI and ID.me are helping institutions track unusual behaviors such as duplicate IP addresses, linguistic patterns, and inconsistent documentation to detect fraud attempts.

Recommendations for HEIs

To mitigate the risk of ghost student infiltration, higher education institutions should:

• Implement digital identity verification systems before enrollment or aid disbursement.

• Train faculty and staff to recognize and report suspicious activity early in the semester.

• Deploy AI tools to detect patterns in application and login data.

• Foster collaboration across institutions to share data on emerging fraud trends.

• Communicate transparently with students about new verification procedures and the reasons behind them.

Why It Matters

Ghost student fraud is more than a financial threat—it is a systemic risk to educational access, operational efficiency, and institutional credibility. With AI-enabled fraud growing in sophistication, higher education must act decisively to safeguard the integrity of enrollment, instruction, and student support systems.

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Sources

• CrossHackers: https://www.crosshackers.com/fake-enrollments

• SF Chronicle: https://www.sfchronicle.com/bayarea/article/community-college-financial-aid-fraud-20325192.php

• SFGate: https://www.sfgate.com/bayarea/article/ghost-students-creating-problem-calif-colleges-20311708.php

• Eye on Yavapai College: https://www.eyeonyavapaicollege.com/administration/fraudsters-attacking-colleges-using-ghost-online-enrollment-schemes

• Star Tribune: https://www.startribune.com/ghost-students-the-new-enrollment-fraud-scheme-minnesota-two-year-colleges-are-fighting/601329524

• Campus Reform: https://www.campusreform.org/article/ghost-students-invading-campuses-scamming-millions-of-dollars-away-and-blocking-out-real-undergrads/28295

• University Business: https://universitybusiness.com/what-can-institutions-do-about-the-rise-of-ghost-students

• JD Supra: https://www.jdsupra.com/legalnews/steps-colleges-should-take-to-bust-3949980

• Get VerifiNow: https://www.getverifinow.com/the-ghost-student-problem

• Intellicheck: https://www.intellicheck.com/resource-library/the-rise-in-ghost-students-how-fraudsters-use-fake-identities

Corruption, Fraud and Scandal at Los Angeles Community College District (LACCD Whistleblower)

During the weekend of May 16-19, 2025, the San Francisco Bay Area Independent Media Center – IndyBay which operates as open platform news source against injustice, scrubbed two years of news articles ranging from May 2023 – May 2025.

The focus of these articles was corruption, fraud and scandal in the Los Angeles Community College District, primarily at Los Angeles Valley College’s Media Arts Department.

A few of these articles summarized.

Erika Endrijonas faces new questions in LACCD fraud | May 2, 2023 |

Pasadena City College President-Superintendent Erika Endrijonas being fired from the institution and trying to get a job at Santa Barbara City College, Mt. SAC, and Los Angeles City College. Endrijonas had been subjected to a vote of no confidence by the Pasadena Academic Senate, Pasadena Full-Time Faculty Union, protests by Part-Time Faculty, and finally the vote to reduce her contract by the newly elected board of trustees.

The article dived into Endrijonas’s tenure at her previous institution – Los Angeles Valley College. Endrijonas was announced in her new role at PCC in December 2018, the same week that a jury in Van Nuys awarded a former LAVC employee $2.9 million jury award for illegal retaliation and abuse. A few months earlier, the Los Angeles Times published a major story about the Valley Academic and Cultural Center – a project meant to be Endrijonas’s crowning achievement – being an alleged massive racketeering scheme.

Further it documented the Media Arts Department the VACC would house had a lengthy history of lawsuits and accreditation complaints against the faculty for not providing the education and training advertised – negating the need for the new building. The building’s approval vote happened in August 2016, the lawsuit happened in 2009, and the Accreditation Complaints happened in June 2016.

Dozen LAVC Cinema Students Narratives challenge Erika Endrijonas’s LACCD Success Story | May 5, 2023 |

This article covered a release of an email thread from a dozen students in 2016 that was ultimately sent to the Accreditation Commission for Junior and Community Colleges in 2016, substantiating that there was widespread fraud in the department. Classes were not scheduled by Department Chair Eric Swelstad, training was not provided, labs were not held, etc . . .

Van Nuys/Los Angeles College Screenwriting Professor Faked Writer’s Guild Membership | May 17, 2023 |

Revealed that LAVC Media Arts Department Chair Eric Swelstad faked his membership in the Writer’s Guild of America – West, and then used it in multiple professional bios.

Los Angeles Valley College perpetuated wage theft against students on Julie Su’s watch | May 19, 2023 |

Documented how Grant Director Dan Watanabe engaged in wage theft against students for two years from 2013 – 2016.

Two Los Angeles Film Professors Bilked Taxpayers Over $3.5 Million Dollars | May 21, 2023 |

Described how LAVC Media Arts Department Founder Joseph Dacursso’s retirement first as Department Chair, then as a full-time faculty in 2012, left Department Chair Eric Swelstad and Arantxa Rodriguez to engage in petty infighting and squabbling that spilled over into scheduling decisions. In short, two faculty members collected six-figure-salaries while putting students in the middle of department in-fighting.

LAVC Omsbudsman Stalked Whistleblowers | August 8, 2023 |

Described how LAVC’s Dean of Students, Annie G. Reed (Goldman) retaliated and stalked students that went to Accreditation, going as far as running a smear campaign that one of them was a potential school shooter. Worse, she began stalking him after he left school – including on social media.

[Image: Annie G. Reed Goldman, Dean of Labor and HR at LACCD]

Further articles questioned where Academic Degrees were given out to students who had not completed Academic classes and criteria, the role of Jo Ann Rivas turned YouTube Personality ‘AuditLA’ who was on the Los Angeles Valley College Citizen’s Building Oversight Committee, whether a number of students with falsified resumes received payments from a Grant as ‘Professional Experts’ etc . . .

The scrubbing of these articles coincided with the formal appointment of Alberto J. Roman as the new Chancellor of the Los Angeles Community College District, following the retirement of disgraced administrator Francisco Rodriguez.

It also came with the publication of two final articles. One about Annie G. Reed’s being named as a Defendant in a lawsuit by former faculty at Los Angeles City College, who came to her about an administrator engaging in illegal behavior – including planting drugs on employees to get them fired.

The second article, probed Los Angeles Valley College Department Chair, Eric Swelstad’s professional bio again and provided evidence that he repeatedly lied and engaged in deceptive advertising and practices for two decades. It provided students who held loans with information about student borrower defenses.

The censorship also came months after Jo Ann Rivas aka AuditLA, herself probed by the articles, launched a barrage of attacks for about a week in January about a former student who had grievance's against the school. Rivas had previously engaged in a similar barrage in July 2020.

This was not the first time that an attempt was made to censor this news stream.

In 2020, an attempt was made to hack the community news feed account on Twitter/X.com @LACCDW. Then a week before the LACCD Board of Trustees election in November 2020, Twitter suspended the community newsfeed altogether. It was only restored two years later after Twitter's sale and the re-evaluation of previous suspended accounts.

In a final update – The Valley Academic and Cultural Center, despite having a 2018 completion date, remains unfinished. According to minutes of the LAVC Work Environment Committee Minutes from 2025-05-08;

“The Valley Academic and Cultural Center (VACC) is as of Friday, May 8th, about 80% complete. They are still patching the roof. There are still some critical items like stage protection net.”

(HR 1391). Restoring the GI Bill for Vets Ripped Off by Predatory Schools

The US House Bill to restore GI Bill funds to those who have been ripped off by predatory schools has had little traction so far.  While politicians like to say "thank you for your service," only nine House members have signed on to the Bill, all Democrats. Both Republicans and Democrats have received funds by these schools, which also have lobbyists in DC to promote their agenda.  

A group of folks who have been ripped off by these schools have formed Restore GI Bill for Veterans to share information and organize for justice in this matter. The private group has approximately 250 members and has been active for more than two years. Membership is vetted. 

University of Phoenix: An Albatross for Idaho?

The University of Phoenix will be back in Idaho District Court in 2025 unless Apollo Global Management can find another buyer for the school. Apollo Group, the primary owner of the University of Phoenix, has been trying to unload the school for years.  

Although the University of Phoenix appears to be a profitable institution, it has potential liabilities, including hundreds of millions of dollars in Borrower Defense to Repayment (fraud) claims that the US Department of Education could claw back from the parent owner. While this risk may be seriously reduced over the next four years, that danger could rise again under a progressive administration. 

As of 2023, there were approximately 73,000 Borrower Defense claims against the school. More than 19,000 Borrower Defense claims were approved for student debtors who attended the University of Phoenix and were part of the Sweet v Cardona settlement. Many of the remaining claims are still awaiting a decision from the Department of Education.  

University of Phoenix debtors are saddled with an estimated $21.6 Billion in student loan debt. 

The University of Phoenix has been involved in a number of lawsuits over the last decade. In 2019, the Federal Trade Commission and the University of Phoenix settled a claim for $191M for deceptive employment claims, but the school denied any wrongdoing.