Asking
Only logged in members can reply and interact with the post.
Join SimilarWorlds for FREE »

California uses AI to find 80,000 fraud community college students. But they cost the state $90 million already last year.




Photo above - screen shot from the 2006 film "Accepted". The plot involves a fake college scam, but this year AI flipped the script and began creating fake students.

I did not see this coming. How do you steal $90 million in college aid by spoofing your application? Evidently there are two problems here.

First, the fraudsters used fake or stolen identities to apply to college online. Then the state of California approved their request for financial assistance, and disbursed money. The fraudsters took the money and ran. ... the state gave them the money – checks or electronic transfers – before classes even started. (See link below)

Before we pin a “software innovation of the year” on AI for detecting the fraud, let’s also note that AI was used by the perps to generate those stolen IDs, bank accounts, and steal the money. Evidently fraud applications tripled in 2024 because AI was having its moment in the news.

You’d think that if the number of college applicants exploded, someone in state government would take a closer look and say “WTH? Is this real?” Apparently, this never happened. California bureaucrats kept pushing money out the door, and crowing with pride about the boom in new students.

Okay, great that someone finally caught on, and used AI to slam the college door shut (at least partially). But here’s where it gets even trickier:

If there were 80,000 college fraud/AI student aid requests last year, then how many fraudulent applications were there in California for welfare, food stamps, section 8 housing, utility bill relief, etc? It’s probably even easier to steal identities for welfare fraud, isn’t it? And the IRS has been warning everyone – for years – that scammers are filing change of address and bank account info to steal our income tax refunds.

Welcome to AI, which is going to destroy us even before it becomes “sentient”.

I’m just sayin’ . . .

AI tracked down nearly 80,000 ‘ghost students’ trying to enroll in California colleges
Top | New | Old
beckyromero · 36-40, F
One of the dangers of electronic checks and online banking institutions.

It used to be you had to go into a bank to open an account and present your documents, deposit paper checks and have your signature checked when making a withdrawl.

Yes, people could still create fake identities. But it was much more difficult and the chance of getting caught was much higher.

But the banking industry doesn't care. Because they generally aren't the ones who end being scammed out of money. And they save money without having tellers and physical locations.
SusanInFlorida · 31-35, F
@beckyromero as a former banker, i can assure you that banks hold significant risk when accounts are looted, or identities stolen.
beckyromero · 36-40, F
@SusanInFlorida

And as a banking customer, I can assure you that banks have done little to protect customers, particularly the elderly, from scams when their bank checking account numbers have been compromised.

This is the case for even savings accounts.

Customers should have the option of having saving accounts that require withdrawls in person so that their identity can be confirmed. And if the bank fails to do so, then the bank should be out the money not the customer.

This would help safeguard the life savings of many Americans, particularly seniors.
SusanInFlorida · 31-35, F
@beckyromero agreed. the elderly are the first target of nigerians, pakistani's and whoever else has invented the scam of the day.

but banks have started to offer new tools to customers. Whenever a wire transfer like Zelle or Erica is initiated, there's usually a followup call from some bank employee asking "are you sure this is real, and you want to do this?"

that's why so many scam artists are now insisting on being paid with gift cards purchased from 7-11 and other convenience stores. Untraceable.
MoveAlong · 70-79, M
Tip for everyone: With AI becoming more sophisticated and more prevalent it is a good idea to place lock or freeze on your credit with the three main credit reporting bureaus, Experian, TransUnion and Equifax (in the US)

If you are not familiar with this process it would be a good time to go online and learn abut it.
SusanInFlorida · 31-35, F
@MoveAlong what does the lock do? alert you to new account openings, or address changes?
MoveAlong · 70-79, M
@SusanInFloridaBoth a credit lock and credit freeze block access to your credit report. They prevent anyone from opening a new account in your name, such as a credit card or loan. Freezing or locking your credit are some of the protection options the credit reporting agencies offer to help you manage your credit and safeguard your identity.

You can call or go on line to initiate a block or freeze. Then later if you want apply for credit you can remove the block on line in about a minute.
SusanInFlorida · 31-35, F
@MoveAlong thank you. you should top post this for the benefit of everyone.
This comment is hidden. Show Comment
SusanInFlorida · 31-35, F
@jshm2 worst reply of the thread. there's an actual link documenting the fraud. a bunch of news organizations covered this.
A couple of issues here. First off we have at best cases of fraudulent applications. Ok.

But then the first leap is a total assumption all 80k were approved. An application for college even for legit people is absolutely not a guarantee of any kind.


And then with no facts or evidence we have fear mongering that this is a widespread issue even though the right seems to have found exactly 1 welfare queen with a lambo since Reagan in the 70s.
@SusanInFlorida I did read it. And I am not making up excuses.

You are as usual finding click bait articles that don't even support your fear mongering.

Oh and as othere point out there are zero arrests or court cases associated with this.

All things required to happen to proclaim someone a criminal and also a pretty good indication that this was a nothing burger.
SusanInFlorida · 31-35, F
@PicturesOfABetterTomorrow i'm confused by your rant. are you saying that I did NOT include a link about 80,000 fraud college applications? Or are you saying that when we cheer the end of fraud against government agencies that's "fear mongering"
@SusanInFlorida I am saying as usual you pretend a click bait title BuzzFeed would be proud of are real problems and pretend Trump and Elon are the saviors of American society instead of the objective proof of the degradation of America.
exchrist · 36-40
Yea not good no suprise. Also musk probably mastermind the whole thing to then blame democrats and praise his handler DJT.
You are saying AI tracked down the fraud a different set of AI committed. Hard to know whom to blame. Cutting the number of government personel is likely the most obvious cause to have this effect.
dale74 · M
@exchrist wrong again he took it then donated it.

https://www.politifact.com/truth-o-meter/promises/trumpometer/promise/1341/take-no-salary/
exchrist · 36-40
@dale74 so as i said he didnt take a salary he chose to donte it instead of receiving it himself. Now ill read.
exchrist · 36-40
@dale74 trump "took no salary"!
FloorGenAdm · 51-55, M

 
Post Comment