Next Big Twist: California Community College’s Fraudulent Enrollments Saga

A realistic college Classroom scene with students sitting at desks. One of the students is a robot. Image generated by DALL-E 2024-09-02.

Image generated by DALL-E on 2024-09-02 by Luke Lara, prompted by “Realistic image of college classroom with students sitting at desks and one of the students is a robot”

By Luke Lara, Ed.D.

I have been working long enough in the California Community College system to remember all the paper applications students needed to fill out to enroll in college and apply for Federal Financial Aid. It was only thirteen years ago that the paper process eventually give way to an electronic process, with the promise of ease, convenience, and efficiency. The honeymoon period ended as criminal elements exploited technological advances and opportunities to easily, conveniently, and efficiently defraud the federal government and colleges of Federal Financial Aid.

The LA Times first reported on the California Community College-wide financial aid scam in 2021. At the height of the COVID-19 Pandemic the majority of California Community College courses were being taught online or remotely. Prior to the Pandemic, California Community Colleges offered most of their courses in-person or on-ground, with only a modest percentage of courses offered completely online. From 2020 onward, the opposite has been true, with 116 California Community Colleges varying in their approaches to find a new balance between on-ground and online course offerings. The heavy online environment we find ourselves in is ripe for continued fraudulent enrollments.

A statewide faculty advocacy group, Faculty Association of the California Community Colleges (FACCC), published an in-depth story on the magnitude of online bots in creating fraudulent enrollments through spring 2023. CalMatters, a California nonprofit and nonpartisan media group, emphasized this ongoing situation in April 2024 by sharing that California Community Colleges have lost more than $5 million to fake students.

Still, the story gets even more interesting, and it has not been written about anywhere yet. While colleges are becoming more proactive by employing mitigating maneuvers, criminal elements continue to evolve in their technological tactics. Admissions offices are having to assign more human eyes to review student applications, slowing down the enrollment process for the sake of ensuring real students enroll and fake ones are thwarted. Bots are now leveraging Artificial Intelligence (AI) to evade detection at the enrollment level and beyond.

A recent memo to faculty at the beginning of the Fall 2024 semester from Denée Pescarmona, Chief Instructional Officer at MiraCosta College, provided a glimpse into the next twist in fraudulent enrollments:

We have been flagging for review students who are registered in online only classes that do not align with their educational goals, as well as many other “flags” we have learned about in past work trying to eliminate these fake students. We currently have a new trend: fraudulent students adding an on-ground class to their schedule to try and bypass our existing mitigation measures. (Emphasis added)

Run that by me one more time? Fake students are now registering for on-ground courses? In addition, the memo stated:

We have received reports from faculty that they are receiving emails asking ​on- ground instructors to [teach] remotely [or] not be dropped for the first two weeks specifically using September 3 (after drop/census), as the date they will return to in-person class. These emails are not honest and are part of the larger scheme to defraud the college out of financial aid dollars.

On-ground, in-person courses use to be safe from virtual bots. This concerning trend continues to escalate, leaving one to wonder what it will take to block these fake enrollments completely. California Code of Regulations (Title 5) stipulates in §§ 58004 and 58161 the guidelines on how students are counted in credit courses for state apportionment funds. Fraudulent enrollments have significant financial implications to a college beyond the loss of financial aid money. California Community Colleges rely on their enrollments for subsequent year State budget apportionment. Having to recalibrate enrollment figures can jeopardize a college’s ability to secure the funding necessary to meet the needs of their actual students. A systemwide solution is necessary.

What is your college doing? Will we return to the ways of the paper application? I hope not, but paper may be the only way to unplug these fraudulent bots wired on AI.

California Community College

by Luke Lara

I want to say that the San Diego State University Educational Leadership Doctoral Program is incredible. I highly recommend anyone seeking to better understand the higher education system and the role of the community college to enroll in this program. Follow this link for more information. I mention this first because from time to time I will write about something that is related to what I have learned in the program.

Today, in my Law and Finance course, we discussed enrollment management. As a counseling faculty member and former department chair, I have had to deal with enrollment management at my departmental level. I saw words like FTES, WSCH, and FTEF, but NOBODY ever took the time to train me or define these terms for me. Today, I finally understood what all this meant. Enrollment management affects all aspects of the college. The ultimate decisions may lie in Instructional services, but there are so many gears that need to work together so that the college can provide the courses to meet the student needs and stay within the means of its budget. Sounds easy, but now I understand why it felt like a nightmare every time I had to deal with scheduling courses.

I recommend that anyone in the community college pay attention to the following key elements of the enrollment management process:

  1. Know the curriculum development process.
  2. Know when the schedule is determined.
  3. Know when the budget is determined.
  4. Know the formula for budget allocation (e.g., understand the importance of FTES).
  5. Listen to your front-line counseling and admissions folk (e.g., canaries in the coal mine).
  6. Get census/attendance data from Admissions Office.
  7. Know the college’s goals (e.g., master plan – grow, maintain, or reduce enrollment).
  8. Cancelling courses is a lose-lose situation (find incentives for faculty to fill their courses).

Lastly, as my instructor said today, “Everyone else can afford to be careless, but you cannot.” If you are an administrator, you cannot afford to be careless. Be transparent about your goals and help your faculty members understand them.

A faculty member perspective may be more about the immediate (e.g., the class I am teaching today), and the administrator may be more focused on the future (e.g., how will the college be responsive to projected demands one or two years down the road). Working together, we can provide quality education to students now and in the future.