Massive 'Ghost Student' Scam Steals Millions in College Aid

Sophisticated identity theft scheme targets community colleges nationwide

Jan. 28, 2026 at 4:07pm by Ben Kaplan

Got story updates? Submit your updates here. ›

A growing number of 'ghost students' are using stolen or fake identities to enroll in online classes at community colleges across the country, fraudulently obtaining hundreds of millions in federal student loans and grants. The scam has become a 'huge issue' for schools and the Department of Education, with over 200 active investigations and some schemes suspected of racking up over $1 billion in ill-gotten gains.

Why it matters

The 'ghost student' scam highlights the vulnerability of open-enrollment community colleges to sophisticated identity theft schemes, as the shift to online learning during the pandemic has made it easier for fraudsters to exploit the system. This fraud drains critical financial aid resources from legitimate students and leaves victims like Murat Mayor and his son with damaged credit and outstanding debts.

The details

Scammers use stolen or fabricated identities to enroll in online classes at community colleges, then disappear after receiving federal student loans and grants. Experts say the fraud grew exponentially when the pandemic forced schools to shift to remote learning. In California, nearly a third of community college applicants in 2024 were identified as fraudulent. Schools are turning to identity verification software to combat the issue, but the brazen scammers - some operating from overseas - continue to find ways around the controls.

  • In 2024, Murat Mayor and his son discovered their identities had been stolen and used to apply for financial aid at multiple community colleges.
  • Over the past five years, the federal government has investigated more than $350 million in fraud perpetrated by 'ghost student' schemes.
  • In 2023, a Maryland man who used 60 stolen identities to obtain over $6.7 million in fraudulent aid was sentenced to four years in prison.

The players

Murat Mayor

A 58-year-old business analyst whose identity, along with that of his high school senior son, was stolen and used to apply for financial aid at multiple community colleges.

Jason Williams

The assistant inspector general for investigations at the U.S. Department of Education's Office of Inspector General, who says the 'ghost student' scam has become a 'huge issue' costing the government hundreds of millions.

Maurice Simpkins

A retired NFL linebacker who operates a software platform called S.A.F.E. that acts as a firewall to help community colleges detect and combat fraudulent student applications.

Gina Macklin

A senior administrator at Delaware County Community College who says the school found more than 500 fake students enrolled in its classes in 2023.

Dr. Beatriz Chaidez

The chancellor of the San Jose Evergreen Community College District, who says the school discovered that just 6 out of 100 students in a 50-person online class were legitimate.

Got photos? Submit your photos here. ›

What they’re saying

“It's a huge issue. As they're stealing identities ... these loans are not being repaid. They're being assigned to people [who] don't even know they have a debt with U.S. Department of Education ... [until] the Internal Revenue Service says you owe the Department of Education money.”

— Jason Williams, Assistant Inspector General for Investigations, U.S. Department of Education's Office of Inspector General (ABC News)

“When the pandemic [hit], everybody went to online learning. Well, by doing that, it really did open the door' for more widespread fraud.”

— Jason Williams, Assistant Inspector General for Investigations, U.S. Department of Education's Office of Inspector General (ABC News)

“It's a terrible year' for the school, not least of which because those fraudsters 'had taken seats from legitimate students.”

— Gina Macklin, Senior Administrator, Delaware County Community College (WPVI-TV)

What’s next

The Department of Education and community colleges across the country are working to implement stronger identity verification controls and fraud detection measures to combat the growing 'ghost student' scam.

The takeaway

The 'ghost student' fraud highlights the need for community colleges and the federal government to invest in robust cybersecurity and identity verification tools to protect financial aid resources and ensure access to higher education for legitimate students. This scam also underscores the vulnerability of open-enrollment institutions to sophisticated identity theft schemes, especially as more learning has shifted online.