Ghost student fraud occurs when bad actors enroll at colleges using fabricated or stolen identities to access financial aid, course materials, or institutional resources without intending to attend. These "ghost students" file aid applications, receive disbursements, and disappear, diverting Title IV funds and private loans, and seats away from legitimate learners. The problem accelerated as online and asynchronous programs expanded, making in-person verification harder and with use of Artificial Intelligence.
