California colleges fight cyber battle with scammers who've stolen $10M in federal aid meant for students
California laws require that community colleges in the state accept any legitimate student, and state lawmakers have spent decades making enrollment easier so everyone gets a chance at an education.
Unfortunately, as the non-profit news agency CalMatters reveals, scammers are using this to their advantage, enrolling in California's community colleges as fake students to steal millions in federal financial aid.
I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast)
Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how
Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10)
The rise of AI has only made this process easier for thieves, as they can use ChatGPT to create written responses aimed at verifying their identities.
Here's how the scam works, along with some details on how it's leading to stolen federal funds and potentially putting schools at risk.
Fake students are a big problem in California community colleges, and the problem is growing.
According to CalMatters, in 2021, the California Community Colleges Chancellor's Office reported that 20% of applicants were likely fake. That jumped to 25% in 2024. Now, the state believes one in three student applications — 34% — is fake.
"Those are all the ones that are stopped,' John Hetts, executive vice chancellor for the data team at the chancellor's office, told CalMatters.
Read more: This hedge fund legend warns US stock market will crash a stunning 80% — claims 'Armageddon' is coming. Don't believe him? He earned 4,144% during COVID. Here's 3 ways to protect yourself
Colleges report that the imposters have stolen millions in financial aid in the past few years; the scammers have siphoned off more than $10 million in federal funds and $3 million in state funds in the past 12 months alone.
While it's true that this is just a small share of the $1.7 billion in federal aid and $1.5 billion in state aid distributed to California's community colleges, it's still a lot of money lost to fraud.
Since 2022, officials have spent $150 million on cybersecurity to fight back against the growing scam. The chancellor's office even enlisted the help of tech companies. Individual schools have contracted with ID.Me to provide ID verification for enrollees.
Hetts said it's an ongoing battle, as every time colleges update technologies to keep fraudsters out, the bad actors adapt with new techniques.
Hetts added that many students accepted at California's community colleges, including foster children and undocumented individuals, don't have much documentation, making the process of separating legitimate applicants from fraudsters even harder.
Federal and state funds are likely to continue to flow to the thieves, as real students who need financial aid and a good education are competing with bots for space.
Teachers are now forced to take on a policing role and root out fake students. They have to do it fast as it's difficult to remove students after the first week of school.
Then there is a financial penalty for dropping students — even if they're fake. Funding is pegged to enrollment.
'If they see I'm running a class that starts with 35 students and ends with 15, that looks terrible," said librarian Heather Dodge, who teaches an online research course at Berkeley City College.
Federal officials helped fight such fraud in the past, with the Department of Education opening an investigation in 2022 into a fraud ring using the identities of 57 individuals that stole $1.1 million in student aid over four years. However, community leaders already felt the federal government could do more, even before the cuts.
Unfortunately, leaders at these colleges warn that the Trump Administration's recent cuts to the Department of Education are likely to exacerbate this growing problem, especially given that the office in charge of administering federal financial aid has lost around half of its staff since Trump took office.
'When you direct less resources to combating fraud … you're going to get more fraud,' Hett said.
Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it
Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead
Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
44 minutes ago
- Yahoo
Reddit brands Anthropic as 'anything but' a white knight, heating up AI scraping wars
A clash between established online content providers and artificial intelligence upstarts is heating up again as AI-driven large language models gobble information in a race to dominate the web's frontier. The latest of the AI scraping wars is between Reddit (RDDT) and AI startup Anthropic ( a company backed by tech giants Amazon (AMZN) and Google (GOOG, GOOGL) that created the AI language model Claude. Reddit is claiming in a new lawsuit that Anthropic intentionally scraped Reddit users' personal data without their consent and then put their data to work training Claude. Reddit said in its complaint that Anthropic "bills itself as the white knight of the AI industry" and argues that "it is anything but." Anthropic said last year that it had blocked its bots from Reddit's website, according to the complaint. But Reddit said Anthropic 'continued to hit Reddit's servers over one hundred thousand times.' An Anthropic spokesperson said, "We disagree with Reddit's claims and will defend ourselves vigorously." Anthropic is also defending itself against a separate suit from music publishers, including Universal Music Group (0VD.F), ABKCO, and Concord, alleging that Anthropic infringed on copyrights for Beyoncé, the Rolling Stones, and other artists as it trained Claude on lyrics to more than 500 songs. The confrontation between Reddit and Anthropic adds to a growing number of high-profile cases where copyright holders have tried to guard their works from the reach of technology firms. A question at the heart of all these lawsuits: Can artificial intelligence companies use copyrighted material to train generative AI models without asking the owner of that data for permission? Courts haven't settled on the answer. However, last February, the US District Court for Delaware handed copyright holder Thompson Reuters a win in a case that could impact what data training models can legally collect. The court granted Thompson Reuters' request for summary judgment, saying that its competitor, Ross, infringed on its copyrights by using lawsuit summaries to train its AI model. The court rejected Ross's argument that it could use the summaries under the concept of fair use, which allows copyrights to be used for news reporting, teaching, research, criticism, and commentary. One big name featuring prominently in some of these clashes is OpenAI ( the creator of chatbot ChatGPT that is run by Sam Altman and backed by Microsoft (MSFT). Comedian Sarah Silverman has accused the companies in a lawsuit of copying material from her book and 7 million pirated works in order to train its AI systems. Parenting website Mumsnet has also accused OpenAI of scraping its six billion-word database without consent. But perhaps the most prominent case targeting OpenAI is from The New York Times (NYT), which in 2023 filed a lawsuit accusing OpenAI and Microsoft of illegally using millions of the news outlet's published stories to train OpenAI's language models. The newspaper has said that ChatGPT, which trained on millions of its articles, at times generates query answers that closely mirror its original publications. Last week, OpenAI called the lawsuit "baseless" and appealed a judge's recent order in that case requiring the AI developer to preserve 'output data' generated by ChatGPT. OpenAI and Microsoft are using a defense similar to those raised in other AI training copyright disputes: that the Times' publicly available content falls under the fair use doctrine and, therefore, can be used to train its models. Getty Images is trying to chip away at that same argument in lawsuits in the US and United Kingdom filed in 2023 against AI image generation startup Stability. The UK case went to trial on Monday. Stability argues that fair use (or "fair dealing" as it's known in the UK) justified training its technology, Stable Diffusion, on copyrighted Getty material. That same defense has hallmarks of justification that Google has been asserting for the past two decades to fight lawsuits claiming it violated copyright laws when pulling information into results for users' search queries. In 2005, the Authors Guild sued Google over millions of books that the tech giant scanned and made available in 'snippets' to online searchers. Google didn't pay for the copyrighted information but did provide word-for-word pieces of the copyrighted works in search results. The US Court of Appeals for the Second Circuit reasoned in a decision that Google's scanning project tested the limits of fair use but was 'transformative' and therefore protected under fair use law. In 2016, Getty Images sued Google over similar claims, alleging that Google violated its copyrights and antitrust law by displaying Getty's high-resolution images in Google search results. The practice, Getty argued, promoted piracy, and kept its prospective customers from visiting its site and from paying for their content. Google and Getty settled before trial. In an agreement, Google agreed to display copyright holders' information more prominently, as well as enter into a licensing partnership with Getty and remove a 'view image' button from Google Search that made it more difficult to download high-quality images. Google could be drawn into the new AI scraping wars as part of a landmark antitrust case against Google's Search monopoly that was won last year by the US Justice Department. The DOJ has argued to a judge considering remedies to rectify Google's monopoly that the search giant could further entrench its dominance by training its AI model, Gemini, on its vast index of internet content. Sign in to access your portfolio
Tom's Guide
3 hours ago
- Tom's Guide
5 AI prompts that make you more human — and harder to replace at work
I've spent the past several years testing AI chatbots — the same ones people worry are coming for their jobs. I've seen AI take on valuable tasks such as write articles, summarize meetings and even offer surprisingly decent advice. But when people ask, 'Is AI going to replace us?' I think there's a better question: What parts of being human can no machine ever replicate? That's where we need to focus. AI is fast, but it doesn't lead with intuition, empathy or purpose. Those are still ours, and they're more valuable than ever. However, as AI continues to integrate within workflows, those who know how to use the technology will increase their human value on the job. To make that advice actually useful, here are five powerful AI prompts designed to strengthen the human skills no machine can replace. Use them with ChatGPT, Gemini, Claude or any of your favorite chatbots to help you train and sharpen the skills that make you uniquely human, as you level up your professional skills. You'll notice these prompts are longer than you might be used to. That's because they go deeper and are more detailed for professional purposes. Tweak and edit them to your liking to make them work for you. Prompt: "Act as a C-suite level strategist. Here is a list of my main projects, tasks and meetings for the upcoming week: [Paste your to-do list or a summary of your weekly workload here]. Get instant access to breaking news, the hottest reviews, great deals and helpful tips. For the 'Human-Led' category, ask me three clarifying questions to help me ensure I am focusing on the highest possible value for each."As mentioned, this prompt is on the longer side, but to effectively get the AI to do what is needed, this type of prompt is necessary. The goal here is to help you shift your focus from "doing tasks" to "directing strategy" and deciding what's truly important. It works because the direction here forces the AI to do the low-level sorting, freeing up your mental energy. More importantly, it reframes your week around strategic impact rather than just completion. The follow-up questions from the AI push you to think like a leader. Prompt: "I need to present a project update. Here are the cold, hard facts and data points: [Insert key data, metrics or status updates here. For example: 'Q2 sales are up 15%, but customer engagement on social media is down 10%. The new software feature was launched two weeks behind schedule.'] Once again, this extensive prompt is key to turning dry data into a compelling narrative that resonates with people. You will look like a superstar at work (and let's face it, be more likely to keep your job) when you showcase this core human skill. This prompt clearly separates the roles, meaning the AI becomes your data source, handling the "what." This frees you to focus entirely on the "so what?" and the "why," practicing the invaluable skill of creating meaning and motivating a team. AI is not replacing you, it's making you do your job even better. Prompt: "I need to create [a marketing plan, a project proposal, a blog post, etc.]. Before you generate anything, I want you to help me build the perfect prompt. Act as an expert prompt engineer and ask me questions to help me define the following: This prompt is a meta-skill builder. It forces you to think strategically before you even start the task. By learning to define your goals with this level of clarity, you ensure the AI works as a precise instrument for your vision, not a generic content machine. By using prompts like this, you'll increase your ability to ask powerful questions and direct the AI to support your efforts to get the job done right, rather than just accepting its first answer. Prompt: "I work in [Your Industry/Field, e.g., 'software development']. I want to find innovative ideas from a completely unrelated field: [Unrelated Field, e.g., 'regenerative agriculture,' 'classical music composition,' 'urban planning']. A key aspect of human creativity is the ability to form original ideas by linking unrelated concepts. This prompt taps into AI's strength in organizing information, while leaving the imaginative leap — spotting patterns and unexpected insights — entirely up to you. That's where breakthroughs are born. This prompt uses that strength to feed you novel concepts. Your human brain then does truly creative work: making the metaphorical leap and finding the unexpected connection that can lead to a breakthrough idea. That only makes your human-ness that much more valuable. Prompt: "Act as a 'Red Team'—your only goal is to challenge my thinking and find every potential flaw in my plan. Do not be agreeable. You might have noticed that AI is naturally agreeable. This prompt instructs it to be a powerful sparring partner. It allows you to see your own blind spots without any social risk. By defending your ideas against a logical and exhaustive critique, you either find and patch the holes or realize you need a new approach, making your final strategy far richer. This prompt helps you to sharpen your judgment and critical thinking by stress-testing your own ideas against a logical opponent. Reimagining your role with AI is likely what the future will look like for most jobs. The human edge comes from asking better questions, and here's the secret no one talks about: AI is only as powerful as the prompts you give it. The more effectively you learn to use AI, the more valuable you become; and the more AI works for you rather than instead of you.
Business Insider
4 hours ago
- Business Insider
Constellation Energy Stock (CEG) Eyes Atomic Expansion to Empower AI Boom
Constellation Energy Corporation (CEG) and Meta Platforms (META) are forming an unlikely partnership. The large-cap energy provider struck what's known as a 'power purchase agreement' with Meta, granting the tech conglomerate the entire 1.1 gigawatt output from Constellation's Clinton Clean Energy Center in Illinois for 20 years starting in mid-2027. Constellation's stock surged around 10% following the news, but has since given up its gains. Confident Investing Starts Here: The deal marks a shift in how hyperscale tech companies are addressing their AI-driven power needs, with nuclear energy emerging as a preferred solution due to its carbon-free baseload power. Constellation's fleet of nuclear power plants bodes well for future deals, leaving me cautiously optimistic despite a frothy valuation. Meta Partnership Marks Nuclear-AI Milestone Meta's 20-year power agreement marks the largest in a growing wave of partnerships between nuclear energy providers and major tech companies. Amazon (AMZN), Microsoft (MSFT), and Google (GOOGL) have all secured nuclear energy to meet the surging power demands driven by their AI initiatives. Nuclear power offers several key advantages over other energy sources, including around-the-clock availability, scalability, and zero carbon emissions. These attributes make it especially appealing to energy-intensive data centers that operate continuously. To put this into perspective, a single ChatGPT query is estimated to consume roughly 10 times more energy than a standard Google search. Why Tech Giants Go Nuclear to Tap AI Nuclear energy remains somewhat misunderstood. While rare nuclear accidents tend to dominate headlines and shape public perception, support for nuclear power is growing. A recent Pew Research Center poll found that 56% of Americans now favor expanding atomic energy. Regulatory momentum is also shifting in its favor, creating a supportive environment for companies like Constellation Energy. The ADVANCE Act of 2024, for example, reduced regulatory review fees for advanced reactor applicants and imposed an 18-month deadline for the Nuclear Regulatory Commission (NRC) to make decisions. Earlier this year, the Trump administration issued executive orders aimed at quadrupling U.S. nuclear capacity by 2050. Constellation, which operates the largest nuclear fleet in the country with 21 reactors across 15 sites, is well-positioned to benefit. When you combine favorable policy shifts with rising demand for energy, particularly from AI infrastructure, it's clear why Constellation is increasingly optimistic about the road ahead Constellation's Earnings Power Up In its first quarter earnings, Constellation highlighted the demand for power from data centers. Constellation is just beginning to monetize AI-driven energy demand. Its adjusted operating earnings grew 17.6% in the first quarter to $2.14 per share. Nuclear production maintained an impressive 94.1% capacity factor and continues to remain stable across all geographies. Due to recent deals, Constellation now projects adjusted operating earnings growth of 13% or more through 2030, up from 10%. Valuation Concerns Cloud the Nuclear Renaissance That said, much of Constellation's potential appears to be priced in. The stock has surged 380% over the past three years and now trades at a Price-to-Earnings (P/E) ratio of 33, nearly double the average for the Utilities sector. This premium valuation leaves little room for error; any operational setbacks could trigger a sharp pullback. While signing long-term agreements with companies like Meta is a positive step, the real challenge lies in execution—building infrastructure, scaling capacity, and navigating regulatory approvals. Time is a critical factor, and delays could have material consequences. Although Constellation currently enjoys a first-mover advantage, it won't be alone for long. Other utility providers are beginning to adopt similar strategies, and competitive pressures in the space are likely to intensify going forward. Is CEG Stock a Good Buy? On Wall Street, CEG sports a Moderate Buy consensus rating based on eight Buy, five Hold, and zero Sell ratings in the past three months. CEG's average stock price target of $318.36 implies an upside potential of approximately 6.5% over the next twelve months. Following the Meta deal, analyst Ryan Levine from Citi downgraded CEG to Hold with a price target of $318. He noted that the stock's rally following the Meta announcement prompted a reevaluation of its value. He added, 'The Meta deal introduces a new framework where nuclear license extensions are considered additive generation, potentially impacting future deals for other plants in CEG's portfolio.' So, Levine sees both positives (a validated business model and premium pricing) and negatives (high valuation, execution risks, and market uncertainty). Premium-Priced Nuclear Powerhouse Poised to Ride the AI Boom Technological advancements—particularly in artificial intelligence—present a significant opportunity for utility companies, and Constellation is well-positioned to capitalize. Its extensive fleet of nuclear power plants gives it a strategic edge, and its recent agreement with Meta could serve as a blueprint for future partnerships with other tech giants. Regulatory momentum is also working in Constellation's favor, further strengthening its long-term prospects. That said, the stock is already trading at a premium, reflecting high investor expectations. While Constellation's growth profile justifies a higher valuation—it's far from a traditional, slow-growth utility—there are still meaningful execution risks tied to complex nuclear infrastructure projects. Given this backdrop, a cautiously optimistic outlook, like the one expressed by analyst Levine, may be the most prudent approach. Still, Constellation appears well-positioned to benefit from the broader resurgence of nuclear energy, particularly as AI continues to drive up demand for reliable, carbon-free power, making it a compelling speculative opportunity.
