California community colleges reported progress in reducing financial aid fraud tied to ghost students and bot-driven claims. Between January and March 2025, ghost students allegedly took about $5.6 million in federal aid and about $900,000 in state aid, but recent monthly reporting showed losses reduced in the spring. The system’s chancellor’s office rolled out a new ID verification policy for applicants, which is optional for now but becomes mandatory in July. As of this month, about half of students had used the verification process, and system leaders said the “ultimate goal” is zero fraud. The issue has also drawn scrutiny from lawmakers at both the federal and state levels, including calls for investigations and audits. System finance and strategic initiatives executive Chris Ferguson said leaders view the current reduction as progress toward elimination, but compliance and verification remain the core strategy for shrinking the fraud pipeline.