Sophisticated 'Ghost Student' Scam Steals Millions in College Aid

Fraudsters use stolen identities to enroll in classes and collect financial aid, leaving victims and colleges to deal with the fallout.

Jan. 28, 2026 at 1:07pm by Ben Kaplan

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A growing 'ghost student' scam has become a major problem for colleges across the country, with fraudsters using stolen or fake identities to enroll in classes online and fraudulently obtain Pell grants and student loans. The scam has cost the federal government hundreds of millions of dollars, and left an untold number of victims like Murat Mayor and his son, whose identities were stolen as part of the scheme. Experts say the move to remote learning during the pandemic has exacerbated the problem, as scammers leverage artificial intelligence to bypass identity verification controls.

Why it matters

The 'ghost student' scam highlights the vulnerability of open-enrollment community colleges to identity theft and financial aid fraud. While the federal government is on the hook for the lost tuition aid, the colleges themselves often bear the burden of detecting and rooting out the fraudulent applications, which can require resources and expertise many institutions lack. The scale of the problem is enormous, with nearly a third of community college applicants in California identified as fraudulent in 2024.

The details

Scammers have realized that the move to remote learning at community colleges provides an opportunity to leverage the power of artificial intelligence to expand their reach and circumvent identity verification controls. Over the past five years, the federal government has investigated more than $350 million in fraud perpetrated by 'ghost student' schemes, and some individual schemes are suspected of racking up more than a billion dollars in ill-gotten gains. Colleges have turned to identity verification software to help combat the fraud, but experts say the scammers' schemes range from the savvy to the sloppy, and all are brazen.

  • In 2024, nearly a third of all community college applicants in California were identified as fraudulent.
  • In 2023, Delaware County Community College found more than 500 fake students enrolled in its classes, which the school described as 'a terrible year'.
  • In 2023, a Maryland man who used the identities of 60 people to take in more than $6.7 million in fraudulent financial aid was sentenced to four years in prison.

The players

Murat Mayor

A 58-year-old business analyst whose identity, along with his son's, was stolen as part of the 'ghost student' scam.

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 is a 'huge issue'.

Maurice Simpkins

A retired NFL linebacker who operates a software platform called Student Application Fraudulent Examination (S.A.F.E.) that helps community colleges detect and combat fraudulent applications.

Gina Macklin

A senior administrator at Delaware County Community College, who said the school found more than 500 fake students enrolled in its classes in 2023, which she described as 'a terrible year'.

Dr. Beatriz Chaidez

The chancellor of the San Jose Evergreen Community College District, who said that at one point, a 50-person online class was booked in minutes and had 100 individuals on its waitlist, but the school later learned that just six of those 'students' were real people trying to get an education.

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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

“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

“From a football term, it's an offensive line.”

— Maurice Simpkins, Founder, Student Application Fraudulent Examination (S.A.F.E.)

What’s next

The judge in the case will decide on Tuesday whether or not to allow the alleged scammer, 'Ken from Tanzania', out on bail.

The takeaway

The 'ghost student' scam highlights the need for community colleges to invest in robust identity verification systems and fraud detection tools to protect against the growing threat of financial aid fraud. This issue also raises broader questions about the vulnerability of open-enrollment institutions to sophisticated criminal schemes and the responsibility of the federal government to safeguard taxpayer-funded student aid programs.