The rise of so-called "ghost students" is sending significant tremors through the U.S. education system, and the reverberations are being felt right here in California. In a scheme that underscores both ingenuity and audacity, identity thieves are enrolling in colleges, bagging federal loans and grants, then vanishing without a trace. According to ABC7 Chicago, the Department of Education's Assistant Inspector General for Investigation, Jason Williams, reveals that you could be a victim without even realizing it.
Williams pointed out the particularly vulnerable position of community colleges with open enrollment policies, stating that "more than a third of their applicants in recent years have been fake," as stated by ABC7 Chicago. These fraudulent enrollments have cost the federal government more than $350 million in lost funds, according to the Department of Education's Inspector General. With over 200 active investigations nationwide, the problem is far-reaching and multifaceted.
In a more personal account, Murat Mayor, a resident of suburban Washington D.C., and his teenage son became unintended recipients of this fraud. During their own college financial aid application process, they discovered a disturbing number of loan and grant applications already filed in their names. The mayor told Finger Lakes Daily News, "'We noticed that there [was] a lot of activity' on accounts created in their names." The mayor added, “There are a lot of applications, loan applications, grant applications … then we panicked."
To counteract these threats, tactics such as credit freezes are recommended by experts, such as Federal Trade Commission Midwest Region Director Jason Adler. "Whether you're a student or a senior," Adler says, "the best way to protect yourself is to freeze your credit online for free with the credit bureaus," as per ABC7 Chicago. Additionally, Maurice Simpkins, a retired NFL linebacker, is offering a digital solution called Student Application Fraudulent Examination, or S.A.F.E., which promises to catch around 95% of fake applications instantaneously.
