Smart Software Exploits Direct Tuition Payment. Sure, the Fraud Is Automated
April 22, 2025
No AI, just the dinobaby himself.
The Voice of San Diego published “As Bot Students Continue to Flood In, Community Colleges Struggle to Respond.” The write up is one of those recipes that “real” news outfits provide to inform their readers about a crime. When I worked through the article, my reaction was, “The process California follows for community college student assistance is a big juicy sandwich on a picnic table in the park on a warm summer day.”
Will the insects flock to the sandwich?
Absolutely. Plus, telling the insects where the sandwich is and the basics of getting their mandibles on that sandwich does one thing: Provide an easy-to-follow set of instructions for a bad actor to follow.
The write up says:
Kevin Alston, a business professor who has taught at Southwestern for nearly 20 years, has stumbled across even more troubling incidents. During a prior semester, he actually called some of the students who were enrolled in his classes but had not submitted any classwork. “One student said ‘I’m not in your class. I’m not even in the state of California anymore’” Alston recalled. The student told him they had been enrolled in his class two years ago but had since moved on to a four-year university out of state. “I said, ‘Oh, then the robots have grabbed your student ID and your name and re-enrolled you at Southwestern College. Now they’re collecting financial aid under your name,’” Alston said.
The opportunity for fraud is a result of certain rules and regulations that require that financial aid be paid directly to the “student.” Enroll as a fake student and get a chunk of money. The more fake students that apply and receive aid, the more money the fake students receive.
California appears to be taking steps to reduce the fraud.
Several observations:
- A basket of rules and regulations appear to create this fraud opportunity
- Smart software in the hands of clever individuals allows the bad actors to collect money. (I am not sure how one cashes multiple checks made out to a fake person, but obviously there are ways around this problem. Are those nifty automatic teller machine deposits an issue?)
- The problem, according to the write up, has been known and getting larger since 2021.
I must admit that I think about online fraud in the hands of pig butchering outfits in the Golden Triangle. The fake student scam sounds like a smaller scale operation. Making a teacher the one who must identify the fake student does not seem to be working.
Okay, let’s see what the great state of California does to resolve this problem. Perhaps the instructors need to attend online classes in fraud detection, apply for financial aid, and get an extra benefit for this non-teaching work? Will community college teachers make good cyber investigators? Sure, especially those teaching history, social science, and literature classes.
Stephen E Arnold, April 22, 2025
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