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Fox News advisory News outlet Students October 2, 2026

How a hidden scam plaguing college campuses has racked up a multimillion-dollar price tag

Criminals enroll in colleges using fake or stolen identities to collect federal student aid without attending classes. These fake enrollments, called ghost students, drain millions from the federal aid system.

Identity theftGovernment impersonationFraud

How it works

Criminals use stolen or fake identities to apply for college enrollment. They then collect government student aid funds intended for actual education. The Education Department discovered the scheme was costing taxpayers millions of dollars annually across multiple campuses.

Red flags to watch for

  • Unsolicited offers to help you get college financial aid quickly
  • Requests for your Social Security number or identity documents via email or text
  • Promises of aid with minimal effort or coursework required
  • Pressure to apply through unofficial channels or private recruiters
  • Offers to enroll you in college programs you did not apply to

What to do

Do not share your Social Security number, identity documents, or financial information with anyone you do not know. Apply for student aid directly through your school's financial aid office or through FAFSA.gov. If you receive unsolicited offers to help you obtain student aid, hang up or delete the message and report it to the Education Department's fraud hotline.

If this reached you

Scam Sentinel would flag it: likely a scam Show it the text, email, or caller and you get a plain-language verdict with the reason, and exactly what to do next. A second opinion in the moment, before you tap, pay, or pick up.

Source: Fox News . Scam Sentinel summarizes this news report in plain language; it is a decision aid, not a guarantee.