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Chatbots are impersonating students for profit - make sure your place is safe

  • Chatbots are posing as students to collect financial aid and attending online classes, impacting real students.
  • Analysis revealed 1.2 million fraudulent applications in California, leading to 223,000 suspected fake enrolments.
  • Identity theft protection software is crucial to safeguard against such attacks, especially after a data breach.
  • Ghost students, operated by chatbots, are accessing online classrooms and collecting financial aid funds.
  • Online classrooms are being filled with chatbot 'students', pushing out real students and causing financial losses.
  • Criminals have stolen at least $11 million in financial aid from California colleges, with little chance of recovery.
  • AI scams are contributing to a surge in identity theft and fraud, with hackers utilizing advanced tactics.
  • Scammers often exploit data from breaches to apply for grants and loans using authentic credentials.
  • The Federal Student Aid Office faced significant staff reductions in 2025, impacting fraud investigation efforts.

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