“They’re very innovative,” McCandless said. “It’s a multimillion-dollar scheme — why wouldn’t you invest in it?”
Bryce Pustos of Chaffey College reported that AI-generated homework was being turned in by fraudulent students using tools like ChatGPT. “Faculty caught it when half the class turned in identical work,” he said.
International Crime Rings
Maurice Simpkins of AMSimpkins noted that fraud rings in Japan, Nairobi, and South Asia are coordinating these operations. They prioritize online-only courses and programs that maximize financial aid.
“These are not basement-dwelling hackers,” said Jordan Burris of Socure. “These are organized criminal enterprises operating at scale.”
Collateral Damage from Financial Aid Fraud
The consequences for legitimate students are severe. Locked out of full classes, some students delay graduation or drop out altogether.
“It’s a barrier,” said Pustos. “They’ve scheduled work, childcare… and now they can’t attend the class they planned their life around.”
