Preventing Fraud in College Financial Aid Programs - Strategies and Best Practices
Learn about the prevalent issue of fraud in college financial aid programs, the challenges faced by educational institutions, and effective strategies to combat fraudulent activities. Explore best practices implemented by KCCD to safeguard financial aid resources and ensure fair distribution to deserving students. Discover how technology tools like CCCApply's Spam Filter and internal precautions taken by the Office of Financial Aid contribute to fraud prevention efforts.
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BAKERSFIELD FRAUD COLLEGE COUNCIL PRESENTATION SEPTEMBER 10, 2021 JENNIFER ACHAN MICHELLE PENA CRAIG HAYWARD
FRAUD BACKGROUND/INFORMATIONAL Fraud Background: The U.S. Department of Education (ED) disburses billions of dollars each year to State and local educational agencies, schools, colleges, universities, and other institutions of higher education. It also disburses financial aid to millions of students, making ED one of the largest financial institutions in the country. But each year, criminals intentionally abuse Federal student aid programs, embezzle student aid meant for learners. KCCD Best Practices: https://kccd- my.sharepoint.com/:x:/r/personal/bob_ngo_kccd_edu/_layouts/15/guestaccess.aspx?e=dc08Zd&share=EYmDq Djj0v1Bp7wwsQUdyxgBN_rNMw7-WUZSqI84Vyiv References: Feds alert colleges nationwide to financial aid scam under investigation at California Community Colleges | EdSource https://calmatters.org/education/higher-education/college-beat-higher-education/2021/09/california-community- colleges-financial-aid-scam/
ADMISSION CCCApply has a Spam Filter to help catch the BOT applications. Algorithm catches a lot of the fraudulent applications that the DO created. Students who apply out of the area go into our holding tank. Students in the holding tank are reviewed individually on a daily basis. If they live out of the area, we reach out to those students,and the student has to verify with supporting documentation before we accept them into our system. It is important that faculty also assist in reaching out to students prior to dropping them from the roster. To make contact with students to determine if extenuating circumstances are creating barriers to accessing the course. Sometimes hearing from faculty is just what the student needs, they might need additional support or need info on how to access campus resources and services.
FINANCIAL AID The Office of Financial Aid external precautions: Federal Financial Aid application process Checks 7 federal entities State Financial Aid application process Checks 5 federal and state entities Scammers use existing ID (steal valid information) The Office of Financial Aid takes internal precautions: CampusLogic- Reviews duplicate IP address: Cognos Report - review duplicate address for non-verified and PELL student Banner Suspense files-Identifies application discrepancies Banner ISIR fields that align with common fraud parameters trigger tasks for students withholding payment till identification is verified Partner with the Department of Education
OFFICE OF INSTITUTIONAL EFFECTIVENESS Created a fraud index that identifies suspicious enrollment patterns Developed and shared a district-wide file that identified 140 very high risk cases and 40 high risk cases for fall 2021 Working with district office to develop and support new requirement for monthly reports on fraudulent applications Next steps: Developing reports that automate the process of flagging suspicious activity on a weekly basis
SUMMARY OF BAKERSFIELD COLLEGE COUNTERMEASURES Spam filter built into CCCApply KCCD algorithm directs problematic applications to holding tank where A&R staff manually inspect and validate or reject applications Campus Logic platform identifies duplicate IP addresses and results in hold on suspect financial aid applications OIE developed a Fraud Index to identify suspicious enrollment patterns. Out-of-Area students have to verify themselves with A&R either in person or over the phone A&R sent email to faculty, requesting them to drop non-participating students after reaching out to students to attempt to verify (fall 2021)
