AI Bots in California Steal Over $10 Million in Federal Financial Aid

“Bots create AI-generated student profiles, apply for enrollment, and submit minimal online coursework—often AI-generated—to stay enrolled long enough to receive federal and state aid disbursements intended for low-income students. The scammers are known as “Pell runners,” who disappear after collecting the $7,400 federal grant.”

https://reason.com/2025/04/30/ai-bots-in-california-steal-over-10-million-in-federal-financial-aid

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