United States

Philips Hue is Raising Prices in the US (theverge.com) 38

Philips Hue will raise prices across its smart lighting and security products for US customers starting July 1st, with parent company Signify attributing the increases directly to tariffs.

The company initially notified customers that prices would "go up" through a promotional message before confirming the tariff-related reasoning in a statement. Signify has not provided specific pricing details or identified which products will be affected, though the company's statement suggests changes may impact the entire Hue lineup.

Some products already reflect higher US pricing, including the new $219.99 Hue Play Wall Washer light, which costs approximately 10% more than the European price when currencies are converted. The latest $32.99 Smart Button also exceeds the $24.99 launch price of its predecessor, while European pricing remained at 21.99 euro ($25.50) for both generations.
United States

FICO To Incorporate Buy-Now-Pay-Later Loans Into Credit Scores (axios.com) 96

FICO credit scores will begin incorporating buy-now-pay-later data for the first time. From a report: With over 90 million Americans expected to use BNPL for purchases this year, critics argue that existing credit scores paint an incomplete picture of an individual's ability to pay back loans. Fair Isaac Corp., which runs FICO, said Monday that it will launch two separate credit scores including BNPL data.

FICO Score 10 BNPL and FICO Score 10 T BNPL will "represent a significant advancement in credit scoring, accounting for the growing importance of BNPL loans in the U.S. credit ecosystem," the company said in a statement. "These scores provide lenders with greater visibility into consumers' repayment behaviors, enabling a more comprehensive view of their credit readiness which ultimately improves the lending experience," FICO added.

Power

New York To Build One of First US Nuclear-Power Plants in Generation (msn.com) 220

New York will construct the first major new U.S. nuclear power plant in more than 15 years, with Governor Kathy Hochul directing the state's public electric utility to add at least one gigawatt of nuclear generation capacity. The New York Power Authority will identify an upstate location and determine reactor design, either independently or through private partnerships.

The project tests President Trump's May executive orders aimed at accelerating nuclear development through regulatory overhaul, expedited licensing, and expanded use of federal lands for reactors. Only five new commercial reactors have come online since 1991, while nuclear capacity has declined more than 4% from its 2012 peak. Potential sites include grounds of New York's three existing plants owned by Constellation Energy. The state is already collaborating with Constellation on federal grant applications for reactor additions at the Nine Mile Point facility in Oswego and studying Ontario's small modular reactor initiatives.
Communications

House Bans WhatsApp on Congressional Staff Devices Over Security Concerns (axios.com) 34

The U.S. House chief administrative officer has banned WhatsApp from congressional staffers' government devices citing data vulnerability concerns. The cybersecurity office deemed the messaging app "high-risk" due to lack of transparency in data protection, absence of stored data encryption, and potential security risks, according to an email obtained by Axios.

Staff cannot download or keep WhatsApp on any House device, including mobile, desktop, or web browser versions.
United States

Is America Finally Improving Its Electric Car Chargers? (seattletimes.com) 162

U.S. consumers "rank problems with public electric vehicle charging and the time it takes to recharge as their top two reasons for rejecting electric vehicles," writes the New York Times, citing figures from data analytics firm J.D. Power.

But are things getting better? Automakers and charging companies are building new stations and updating their cars to allow drivers to more easily and quickly recharge their vehicles. They're also outfitting charging stations with items such as food and bathrooms, and making the devices more reliable. Because chargers are only as fast as the cars they connect with, automakers are designing new cars to absorb electricity at higher speeds. In addition, many automakers have cut deals with Tesla to allow owners of other cars to use the company's fast-charging network, the largest in the country and widely considered the most reliable.

Early evidence suggests efforts to improve electric vehicle charging are paying off. In recent years, J.D. Power surveys showed about 20% of attempts to charge electric vehicles at all public stations ended in failure because of faulty chargers, long lines or payment glitches. But in the first three months of 2025, overall failure rates fell to 16%, the biggest improvement since the surveys began in 2021. "The industry is finally elevating as a whole," said Brent Gruber, an executive director at J.D. Power.

The number of chargers has also increased. There were about 55,200 fast chargers in the United States in May, up from 42,200 a year earlier, according to federal data.

In February, a former Phillips 66 gas station in Apex, N.C., near Raleigh, became the first "Rechargery" from Ionna, a company created by eight automakers, including General Motors, Hyundai Motors, BMW and Mercedes-Benz. Their chargers can deliver up to 400 kilowatts of juice, much more than Tesla's 250-kilowatt Superchargers. Some cars can replenish a battery in 30 minutes or less at the higher charging speeds. When connected to chargers of 350 kilowatts or more, including those at Ionna and Electrify America, another fast-charging network, a Hyundai Ioniq 5 can fill its electric "tank" from 10% to 80% in 18 minutes...

Some models from BMW, Hyundai and Kia have also enabled a national "Plug and Charge" standard that lets car owners begin charging their vehicles at Ionna stalls without first having to use a smartphone app or swipe a credit card, eliminating a step that sometimes results in errors. Tesla's chargers have long worked this way for Tesla cars and now work with some other vehicles, including Rivian's SUVs and pickups. More cars and charging stations are expected to have plug-and-charge capability in the coming months... Nearly every major automaker is redesigning their cars with plug outlets and software that are compatible with Tesla chargers.

Infrastructure upgrades are happening elsewhere too, according to the article.Texas-based gas chain Buc-ee's is offering "premium" charging using renewable power (working with Mercedes), while Waffle House plans to install BP Pulse fast chargers next year.

J.D. Power's Gruber says that while America's federal charger program only helped construct a tiny fraction of new chargers, it did also published guidelines which helped automakers and charging companies work together and address technical problems.
AI

Tesla Begins Driverless Robotaxi Service in Austin, Texas (theguardian.com) 110

With no one behind the steering wheel, a Tesla robotaxi passes Guero's Taco Bar in Austin Texas, making a right turn onto Congress Avenue.

Today is the day Austin became the first city in the world to see Tesla's self-driving robotaxi service, reports The Guardian: Some analysts believe that the robotaxis will only be available to employees and invitees initially. For the CEO, Tesla's rollout is slow. "We could start with 1,000 or 10,000 [robotaxis] on day one, but I don't think that would be prudent," he told CNBC in May. "So, we will start with probably 10 for a week, then increase it to 20, 30, 40."

The billionaire has said the driverless cars will be monitored remotely... [Posting on X.com] Musk said the date was "tentatively" 22 June but that this launch date would be "not real self-driving", which would have to wait nearly another week... Musk said he planned to have one thousand Tesla robotaxis on Austin roads "within a few months" and then he would expand to other cities in Texas and California.

Musk posted on X that riders on launch day would be charged a flat fee of $4.20, according to Reuters. And "In recent days, Tesla has sent invites to a select group of Tesla online influencers for a small and carefully monitored robotaxi trial..." As the date of the planned robotaxi launch approached, Texas lawmakers moved to enact rules on autonomous vehicles in the state. Texas Governor Greg Abbott, a Republican, on Friday signed legislation requiring a state permit to operate self-driving vehicles. The law does not take effect until September 1, but the governor's approval of it on Friday signals state officials from both parties want the driverless-vehicle industry to proceed cautiously... The law softens the state's previous anti-regulation stance on autonomous vehicles. A 2017 Texas law specifically prohibited cities from regulating self-driving cars...

The law requires autonomous-vehicle operators to get approval from the Texas Department of Motor Vehicles before operating on public streets without a human driver. It also gives state authorities the power to revoke permits if they deem a driverless vehicle "endangers the public," and requires firms to provide information on how police and first responders can deal with their driverless vehicles in emergency situations. The law's requirements for getting a state permit to operate an "automated motor vehicle" are not particularly onerous but require a firm to attest it can safely operate within the law... Compliance remains far easier than in some states, most notably California, which requires extensive submission of vehicle-testing data under state oversight.

Tesla "planned to operate only in areas it considered the safest," according to the article, and "plans to avoid bad weather, difficult intersections, and will not carry anyone below the age of 18."

More details from UPI: To get started using the robotaxis, users must download the Robotaxi app and use their Tesla account to log in, where it then functions like most ridesharing apps...

"Riders may not always be delivered to their intended destinations or may experience inconveniences, interruptions, or discomfort related to the Robotaxi," the company wrote in a disclaimer in its terms of service. "Tesla may modify or cancel rides in its discretion, including for example due to weather conditions." The terms of service include a clause that Tesla will not be liable for "any indirect, consequential, incidental, special, exemplary, or punitive damages, including lost profits or revenues, lost data, lost time, the costs of procuring substitute transportation services, or other intangible losses" from the use of the robotaxis.

Their article includes a link to the robotaxi's complete Terms of Service: To the fullest extent permitted by law, the Robotaxi, Robotaxi app, and any ride are provided "as is" and "as available" without warranties of any kind, either express or implied... The Robotaxi is not intended to provide transportation services in connection with emergencies, for example emergency transportation to a hospital... Tesla's total liability for any claim arising from or relating to Robotaxi or the Robotaxi app is limited to the greater of the amount paid by you to Tesla for the Robotaxi ride giving rise to the claim, and $100... Tesla may modify these Terms in our discretion, effective upon posting an updated version on Tesla's website. By using a Robotaxi or the Robotaxi app after Tesla posts such modifications, you agree to be bound by the revised Terms.
United States

America Invested in EV Battery Plants. Now They May Be Stranded. (msn.com) 159

An anonymous reader shared this report from the Washington Post: Over the past three years, companies have invested tens of billions of dollars toward making electric vehicles in the United States, buoyed by tax incentives aimed at helping American businesses compete with China. Now, those companies are facing a strange problem: too much manufacturing capacity, not enough demand.

As sales of electric vehicles slow and congressional Republicans take aim at EV tax credits and incentives, the United States is slated to have more battery and EV manufacturing than it needs, according to a report released Wednesday by the Rhodium Group, a research firm. That could leave factories — many of which are already operating or under construction — stranded if car sales continue to slump. "The rug is being pulled out from under these manufacturers," said Hannah Pitt, a director in Rhodium's energy and climate practice...

After [America's 2022 climate bill], battery investment in the U.S. skyrocketed. Companies went from investing about $1 billion per quarter in 2022 to $11 billion per quarter in 2024. Most of that battery investment went to red states, including in the South's "Battery Belt," where manufacturers were drawn to inexpensive land and a nonunionized workforce. Now, however, that battery boom is teetering. In the first three months of 2025, companies canceled $6 billion in battery manufacturing — a record. EV sales have slowed...

According to the new report, the United States has almost enough battery capacity announced or under development to meet demand all the way to 2030 if EV sales continue to slump. That might sound like a good thing — but if EV sales drop further, it means companies will be left with factories they won't be able to use. At the same time, China has excess battery capacity. The country has enough manufacturing to meet the entire world's demand for batteries — and may be looking to off-load them onto other markets... And if the incentives for using U.S.-made batteries disappear, the nation's manufacturers would be left high and dry.

United States

Congestion Pricing in Manhattan is a Predictable Success (economist.com) 111

Manhattan's congestion pricing program has reduced traffic by 10% and cut car-noise complaints by 70% in its first six months of operation, according to city data. The $9 daily toll for vehicles entering Manhattan below 60th Street began January 5, generating approximately $50 million monthly for subway and public transit improvements.

Buses now travel fast enough that drivers must stop and wait to maintain schedules, while subway ridership has increased sharply since the program launched. Broadway theater attendance has risen rather than declined as some critics predicted. Polling shows more New Yorkers now support the toll than oppose it, a reversal from widespread opposition before implementation.

The policy took nearly 50 years to enact despite originating from Columbia University economist William Vickrey's work in the 1960s. Congress blocked a similar proposal in the 1970s, and the current program faced a six-year implementation delay after Governor Andrew Cuomo signed it into law in 2019. Governor Kathy Hochul postponed the launch in 2024 before allowing it to proceed after Donald Trump's presidential election victory.
United States

DHS Warns of Sharp Rise in Chinese-Made Signal Jammers (theregister.com) 43

The Department of Homeland Security is concerned about the rate at which outlawed signal-jamming devices are being found across the US. From a report: In a warning issued on Wednesday, it said it has seen an 830 percent increase in seizures of these signal jammers since 2021, specifically those made in China. Signal-jamming devices are outlawed in the US, mainly because they can interfere with communications between emergency services and law enforcement.

While the Communications Act of 1934 effectively prohibits such devices, signal jammers of the type DHS is concerned about have only circulated in the last 20 to 30 years. Authorities have paid special attention to relay attack devices in recent years -- the types of hardware that can be used to clone signals used by systems such as remote car keys, although the first examples of these devices date back to the 1980s.

United States

NYC Sets Smaller Driver Pay Bump After Uber, Lyft Pushback (bloomberg.com) 10

New York City on Friday announced new minimum-pay rules for rideshare drivers, settling on a smaller-than-proposed 5% increase following pushback from Uber Technologies and Lyft. From a report: An earlier proposal called for a 6.1% pay boost. The finalized regulations from the city's Taxi and Limousine Commission, or TLC, are also designed to deter Uber and Lyft from locking gig workers out of their apps in an attempt to keep costs down. The board of commissioners will vote on the rules on June 25, according to the agency's website.

Uber and Lyft had strongly opposed the original rate, warning customers that it would force them to increase prices. Lyft's shares extended declines after Bloomberg reported on the rules, falling as much as 3.3% to hit session lows. Uber's stock, which had been up as much as 2.3% earlier Friday, pared most of its gains on the news.

United States

New US Visa Rules Will Force Foreign Students To Unlock Social Media Profiles (theguardian.com) 173

An anonymous reader quotes a report from The Guardian: Foreign students will be required to unlock their social media profiles to allow US diplomats to review their online activity before receiving educational and exchange visas, the state department has announced. Those who fail to do so will be suspected of hiding that activity from US officials. The new guidance, unveiled by the state department on Wednesday, directs US diplomats to conduct an online presence review to look for "any indications of hostility toward the citizens, culture, government, institutions, or founding principles of the United States."

A cable separately obtained by Politico also instructs diplomats to flag any "advocacy for, aid or support for foreign terrorists and other threats to US national security" and "support for unlawful antisemitic harassment or violence." The screening for "antisemitic" activity matches similar guidance given at US Citizenship and Immigration Services under the Department of Homeland Security and has been criticized as an effort to crack down on opposition to the conduct of Israel's war in Gaza.

The new state department checks are directed at students and other applicants for visas in the F, M and J categories, which refer to academic and vocational education, as well as cultural exchanges. "It is an expectation from American citizens that their government will make every effort to make our country safer, and that is exactly what the Trump administration is doing every single day," said a senior state department official, adding that Marco Rubio was "helping to make America and its universities safer while bringing the state Department into the 21st century."

Businesses

Texas Instruments To Invest $60 Billion To Make Semiconductors In US (cnbc.com) 62

Longtime Slashdot reader walterbyrd shares news that Texas Instruments has announced plans to invest more than $60 billion to expand its U.S. manufacturing operations in the United States. From a report: The funds will be used to build or expand seven chip-making facilities in Texas as well as Utah, and will create 60,000 jobs, TI said on Wednesday, calling it the "largest investment in foundational semiconductor manufacturing in U.S. history." The company did not give a timeline for the investment.

Unlike AI chip firms Nvidia and AMD, TI makes analog or foundational chips used in everyday devices such as smartphones, cars and medical devices, giving it a large client base that includes Apple, SpaceX and Ford Motor. The spending pledge follows similar announcements from others in the semiconductor industry, including Micron, which said last week that it would expand its U.S. investment by $30 billion, taking its planned spending to $200 billion. [...]

Like other companies unveiling such spending commitments, TI's announcement includes funds already allocated to facilities that are either under construction or ramping up. It will build two additional plants in Sherman, Texas, based on future demand. "TI is building dependable, low-cost 300 millimeter capacity at scale to deliver the analog and embedded processing chips that are vital for nearly every type of electronic system," said CEO Haviv Ilan.

Social Networks

Social Media Now Main Source of News In US, Research Suggests (bbc.com) 169

An anonymous reader quotes a report from the BBC: Social media and video networks have become the main source of news in the US, overtaking traditional TV channels and news websites, research suggests. More than half (54%) of people get news from networks like Facebook, X and YouTube -- overtaking TV (50%) and news sites and apps (48%), according to the Reuters Institute. "The rise of social media and personality-based news is not unique to the United States, but changes seem to be happening faster -- and with more impact -- than in other countries," a report found. Podcaster Joe Rogan was the most widely-seen personality, with almost a quarter (22%) of the population saying they had come across news or commentary from him in the previous week. The report's author Nic Newman said the rise of social video and personality-driven news "represents another significant challenge for traditional publishers." Other key findings from the report include:
- TikTok is the fastest-growing social and video platform, now used for news by 17% globally (up 4% from last year).
- AI chatbot use for news is increasing, especially among under-25s, where it's twice as popular as in the general population.
- Most people believe AI will reduce transparency, accuracy, and trust in news.
- Across all age groups, trusted news brands with proven accuracy remain valued, even if used less frequently.
Businesses

The US Navy Is More Aggressively Telling Startups, 'We Want You' (techcrunch.com) 20

An anonymous reader quotes a report from TechCrunch: While Silicon Valley executives like those from Palantir, Meta, and OpenAI are grabbing headlines for trading their Brunello Cucinelli vests for Army Reserve uniforms, a quieter transformation has been underway in the U.S. Navy. How so? Well, the Navy's chief technology officer, Justin Fanelli, says he has spent the last two and a half years cutting through the red tape and shrinking the protracted procurement cycles that once made working with the military a nightmare for startups. The efforts represent a less visible but potentially more meaningful remaking that aims to see the government move faster and be smarter about where it's committing dollars.

"We're more open for business and partnerships than we've ever been before," Fanelli told TechCrunch in a recent episode of StrictlyVC Download. "We're humble and listening more than before, and we recognize that if an organization shows us how we can do business differently, we want that to be a partnership." Right now, many of these partnerships are being facilitated through what Fanelli calls the Navy's innovation adoption kit, a series of frameworks and tools that aim to bridge the so-called Valley of Death, where promising tech dies on its path from prototype to production. "Your granddaddy's government had a spaghetti chart for how to get in," Fanelli said. "Now it's a funnel, and we are saying, if you can show that you have outsized outcomes, then we want to designate you as an enterprise service."

In one recent case, the Navy went from a Request for Proposal (RFP) to pilot deployment in under six months with Via, an eight-year-old, Somerville, Massachusetts-based cybersecurity startup that helps big organizations protect sensitive data and digital identities through, in part, decentralization, meaning the data isn't stored in one central spot that can be hacked. (Another of Via's clients is the U.S. Air Force.) The Navy's new approach operates on what Fanelli calls a "horizon" model, borrowed and adapted from McKinsey's innovation framework. Companies move through three phases: evaluation, structured piloting, and scaling to enterprise services. The key difference from traditional government contracting, Fanelli says, is that the Navy now leads with problems rather than predetermined solutions. "Instead of specifying, 'Hey, we'd like this problem solved in a way that we've always had it,' we just say, 'We have a problem, who wants to solve this, and how will you solve it?'" Fanelli said.

United States

Trump Organization Announces Mobile Plan, $499 Smartphone (cnbc.com) 284

The Trump Organization on Monday unveiled a mobile phone plan and a $499 smartphone that is set to launch in September. CNBC: The new service, Trump Mobile, will offer a $47.45-per-month plan that includes "unlimited" talk, text and data, as well as roadside assistance and a "Telehealth and Pharmacy Benefit," according to its website. The company, owned by President Donald Trump, also announced it will sell a "T1" smartphone, which appears to feature a gold-colored metal case etched with an American flag. Further reading: I Tried Pre-Ordering the Trump Phone. The Page Failed and It Charged My Credit Card the Wrong Amount.
Transportation

Walmart's Drone Deliveries Expand, Now in Five Different US States (cnbc.com) 44

"Walmart is bringing drone deliveries to three more states," reports CNBC: On Thursday, the big-box retailer said it plans to launch the speedier delivery option at 100 stores in Atlanta, Charlotte, Houston, Orlando and Tampa within the coming year. With the expansion, Walmart's drone deliveries will be available in a total of five states: [parts of northwest] Arkansas, Florida, Georgia, North Carolina and [the Dallas-Fort Worth area of] Texas... The drone operator will have an up to a six-mile range from stores.
Walmart tells CNBC the most frequently delivered items include ice cream, fresh fruit, and pet food, as well as "urgent items, such as hamburger buns for a cookout, eggs to make brownies or Tylenol or cold medicine needed when sick." It's all part of Walmart's effort to compete with Amazon: With more than 4,600 Walmart stores across the U.S., the retailer has used its large footprint to get online orders to customers faster. It has an Express Delivery service that drops purchases at customers' doors in as fast as 30 minutes, along with InHome, a subscription-based service, that puts items directly into people's fridges. The company began same-day prescription deliveries last fall and has expanded the service across the country.... Walmart stores have an assortment of over 150,000 items in a location. Over 50% of those can be delivered by drone, said Greg Cathey [Walmart's senior VP for U.S. transformation and innovation]...

Walmart's drone delivery count so far is modest. The company did not share the specific count, but said it has racked up a total of more than 150,000 drone deliveries since 2021.

United States

New York State Begins Asking Employers to Offically Identify Layoffs Caused by AI (entrepreneur.com) 32

The state of New York is "asking companies to disclose whether AI is the reason for their layoffs," reports Entrepreneur: The move applies to New York State's existing Worker Adjustment and Retraining Notification (WARN) system and took effect in March, Bloomberg reported. New York is the first state in the U.S. to add the disclosure, which could help regulators understand AI's effects on the labor market.

The change takes the form of a checkbox added to a form employers fill out at least 90 days before a mass layoff or plant closure through the WARN system. Companies have to select whether "technological innovation or automation" is a reason for job cuts. If they choose that option, they are directed to a second menu where they are asked to name the specific technology responsible for layoffs, like AI or robots.

AI

Site for 'Accelerating' AI Use Across the US Government Accidentally Leaked on GitHub (404media.co) 18

America's federal government is building a website and API called ai.gov to "accelerate government innovation with AI", according to an early version spotted by 404 Media that was posted on GitHub by the U.S. government's General Services Administration.

That site "is supposed to launch on July 4," according to 404 Media's report, "and will include an analytics feature that shows how much a specific government team is using AI..." AI.gov appears to be an early step toward pushing AI tools into agencies across the government, code published on Github shows....

The early version of the page suggests that its API will integrate with OpenAI, Google, and Anthropic products. But code for the API shows they are also working on integrating with Amazon Web Services' Bedrock and Meta's LLaMA. The page suggests it will also have an AI-powered chatbot, though it doesn't explain what it will do... Currently, AI.gov redirects to whitehouse.gov. The demo website is linked to from Github (archive here) and is hosted on cloud.gov on what appears to be a staging environment. The text on the page does not show up on other websites, suggesting that it is not generic placeholder text...

In February, 404 Media obtained leaked audio from a meeting in which [the director of the GSA's Technology Transformation Services] told his team they would be creating "AI coding agents" that would write software across the entire government, and said he wanted to use AI to analyze government contracts.

United States

Executives from Meta, OpenAI, and Palantir Commissioned Into the US Army Reserve (theregister.com) 184

Meta's CTO, Palantir's CTO, and OpenAI's chief product officer are being appointed as lieutenant colonels in America's Army Reserve, reports The Register. (Along with OpenAI's former chief revenue officer).

They've all signed up for Detachment 201: Executive Innovation Corps, "an effort to recruit senior tech executives to serve part-time in the Army Reserve as senior advisors," according to the official statement. "In this role they will work on targeted projects to help guide rapid and scalable tech solutions to complex problems..." "Our primary role will be to serve as technical experts advising the Army's modernization efforts," [Meta CTO Andrew Bosworth] said on X...

As for Open AI's involvement, the company has been building its ties with the military-technology complex for some years now. Like Meta, OpenAI is working with Anduril on military ideas and last year scandalized some by watering down its past commitment to developing non-military products only. The Army wasn't answering questions on Friday but an article referenced by [OpenAI Chief Product Officer Kevin] Weil indicated that the four will have to serve a minimum of 120 hours a year, can work remotely, and won't have to pass basic training...

"America wins when we unite the dynamism of American innovation with the military's vital missions," [Palantir CTO Shyam] Sankar said on X. "This was the key to our triumphs in the 20th century. It can help us win again. I'm humbled by this new opportunity to serve my country, my home, America."

Education

'Ghost' Students are Enrolling in US Colleges Just to Steal Financial Aid (apnews.com) 110

Last week America's financial aid program announced that "the rate of fraud through stolen identities has reached a level that imperils the federal student aid programs."

Or, as the Associated Press suggests: Online classes + AI = financial aid fraud. "In some cases, professors discover almost no one in their class is real..." Fake college enrollments have been surging as crime rings deploy "ghost students" — chatbots that join online classrooms and stay just long enough to collect a financial aid check... Students get locked out of the classes they need to graduate as bots push courses over their enrollment limits.

And victims of identity theft who discover loans fraudulently taken out in their names must go through months of calling colleges, the Federal Student Aid office and loan servicers to try to get the debt erased. [Last week], the U.S. Education Department introduced a temporary rule requiring students to show colleges a government-issued ID to prove their identity... "The rate of fraud through stolen identities has reached a level that imperils the federal student aid program," the department said in its guidance to colleges.

An Associated Press analysis of fraud reports obtained through a public records request shows California colleges in 2024 reported 1.2 million fraudulent applications, which resulted in 223,000 suspected fake enrollments. Other states are affected by the same problem, but with 116 community colleges, California is a particularly large target. Criminals stole at least $11.1 million in federal, state and local financial aid from California community colleges last year that could not be recovered, according to the reports... Scammers frequently use AI chatbots to carry out the fraud, targeting courses that are online and allow students to watch lectures and complete coursework on their own time...

Criminal cases around the country offer a glimpse of the schemes' pervasiveness. In the past year, investigators indicted a man accused of leading a Texas fraud ring that used stolen identities to pursue $1.5 million in student aid. Another person in Texas pleaded guilty to using the names of prison inmates to apply for over $650,000 in student aid at colleges across the South and Southwest. And a person in New York recently pleaded guilty to a $450,000 student aid scam that lasted a decade.

Fortune found one community college that "wound up dropping more than 10,000 enrollments representing thousands of students who were not really students," according to the school's president. The scope of the ghost-student plague is staggering. Jordan Burris, vice president at identity-verification firm Socure and former chief of staff in the White House's Office of the Federal Chief Information Officer, told Fortune more than half the students registering for classes at some schools have been found to be illegitimate. Among Socure's client base, between 20% to 60% of student applicants are ghosts... At one college, more than 400 different financial-aid applications could be tracked back to a handful of recycled phone numbers. "It was a digital poltergeist effectively haunting the school's enrollment system," said Burris.

The scheme has also proved incredibly lucrative. According to a Department of Education advisory, about $90 million in aid was doled out to ineligible students, the DOE analysis revealed, and some $30 million was traced to dead people whose identities were used to enroll in classes. The issue has become so dire that the DOE announced this month it had found nearly 150,000 suspect identities in federal student-aid forms and is now requiring higher-ed institutions to validate the identities of first-time applicants for Free Application for Federal Student Aid (FAFSA) forms...

Maurice Simpkins, president and cofounder of AMSimpkins, says he has identified international fraud rings operating out of Japan, Vietnam, Bangladesh, Pakistan, and Nairobi that have repeatedly targeted U.S. colleges... In the past 18 months, schools blocked thousands of bot applicants because they originated from the same mailing address; had hundreds of similar emails with a single-digit difference, or had phone numbers and email addresses that were created moments before applying for registration.

Fortune shares this story from the higher education VP at IT consulting firm Voyatek. "One of the professors was so excited their class was full, never before being 100% occupied, and thought they might need to open a second section. When we worked with them as the first week of class was ongoing, we found out they were not real people."

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