Scammers have become a staple of the American digital experience. Be it emails from mystery Gmail accounts telling people that they need to pay the IRS, or the promotion of “hot singles” in someone’s area, Americans are inundated with scammers doing their best to rob hard-working people of their hard-earned money.
Administrators with California Community Colleges have been battling scammers’ attempts to syphon financial aid funding from state coffers for years; however, the problem has become more significant following the COVID-19 pandemic. Fraud cases for so-called “Pell Runners,” or fraudsters who enroll in courses at California Community Colleges, receive financial aid, then disappear with the money, have grown from 20% of enrollees being fraudulent in 2021 to 25% last year, according to a report from CalMatters.
What this means for CCC and the 116 community colleges under its discretion is a collective $10 million loss in 2024, an amount that has propelled action from the California Community Colleges Chancellor’s Office and the California Student Aid Commission to involve themselves at the local level.
“The ARC and Los Rios administrative teams began collaborating closely with the California Community Colleges Chancellor’s Office (CCCCO) and the California Student Aid Commission (CSAC) to identify emerging patterns, implement protective measures, and ensure that legitimate students continued to receive timely aid,” said Gabe Ross, ARC’s associate vice chancellor of strategy and communication in an email to the Current.
Some of those measures are currently active, as was introduced under the guidance of the CCCCO, CSAC and the U.S Department of Education.
“These [measures] include implementing multi-factor identity verification through several tools, improving data-matching processes between federal and state systems, and increasing communication with students about protecting personal information,” Ross said.
Modern technology is also playing a hand in preventing the loss of financial aid funding, as AI is included among the variety of tools and system checks used to detect and monitor fraud.
“District and college staff collaborate with the CCCCO, CSAC and peer institutions to identify best practices, including pattern recognition and cross-system alerts that flag suspicious enrollment or aid activity,” Ross said. “This layered approach helps ensure that legitimate students remain the focus of our services.
Despite the multiple layers and multiple authenticating factors, financial aid security is a communal challenge. The ARC Financial Aid and IT Departments have provided recommendations for students to protect themselves from fraud, such as recommending that all students create and monitor a Federal Student Aid account, regularly monitor the email address associated with that FSA account for verification requests and stay informed through official ARC & Los Rios communications.
The IT and Financial Aid Departments have further recommendations for students or anyone looking to protect themselves from fraud:
Recognize Suspicious Emails
Verify the sender’s domain (e.g., @losrios.edu)
Beware of generic greetings or urgent requests
Avoid links in unexpected messages
Protect Your Personal Information
Never share passwords or financial details
Type URLs manually instead of clicking links
Contact the college directly to confirm requests
Utilize Security Tools
Enable Multi-Factor Authentication (MFA
Keep devices and browsers updated
Use strong, unique passwords
Freeze and monitor personal credit
Being able to secure financial aid into the foreseeable future shouldn’t be a problem for ARC students, as the ARC Financial Aid department ensures that the administration will be absorbing the brunt of the financial loss.
“At ARC, the impact is primarily administrative rather than financial. The college and district have dedicated resources to strengthen fraud detection systems, improve identity verification and coordinate with federal and state partners to ensure compliance. These actions are designed to safeguard legitimate student aid and maintain accountability in how public funds are distributed,” Ross said. “Financial aid will remain a cornerstone of student success, and ongoing monitoring will help ensure that funds are available to those who need them most.”
Follow William Forseth on Instagram @WilliamForseth or email him at [email protected]
