AI vs. Application Fraud: Protecting Admissions from Digital Deception

In this episode of Generation AI, hosts Ardis Kadiu and JC Bonilla, joined by CTO Petar, explore the growing challenge of college application fraud and Element451's innovative AI solution. They discuss how fraudulent applications impact institutions through resource theft, financial aid abuse, and system manipulation. The conversation reveals how Element451's new AI-powered fraud detection system uses behavioral data and LLM reasoning to identify suspicious applications while avoiding demographic bias. The team explains their approach of keeping humans in the loop while using advanced technology to process applications at scale.

Introduction and Context (00:00:07)

• Hosts Ardis Kadiu and JC Bonilla welcome special guest Petar
• Discussion focuses on college application fraud detection
• Element451's development of AI-powered solution

Understanding Application Fraud (00:02:26)

• Impact on non-selective institutions and community colleges without application fees
• Fraudulent applications seeking .edu email addresses for free resources
• Financial aid fraud through fake applications
• Multiple levels of fraud affecting institutions
• Manual review process becoming overwhelming for schools

Current Detection Methods and Challenges (00:05:05)

• Discussion of sophisticated fraud schemes beyond simple automation
• Fraudsters using real data and identity theft
• VPN usage to mask locations
• Current manual review processes and their limitations
• Time constraints in application review during peak seasons

Element451's AI Solution: Bolt AI (00:10:16)

• Introduction to Bolt AI as Element451's AI framework
• Multiple factors considered in fraud detection
• Behavioral data analysis approach
• Focus on non-demographic indicators to prevent bias

Key Detection Factors (00:12:21)

• Time to submission analysis
• Application submission patterns
• IP address verification and VPN detection
• Email validation and bounce rate checking
• Geographic location analysis
• Cross-system duplicate detection

AI Implementation and Reasoning (00:21:13)

• Use of Large Language Models (LLMs) for reasoning
• Advantage over traditional rule-based systems
• Explainable AI decisions with detailed reasoning
• Processing of 60,000 applications in initial weeks
• Human feedback integration for system improvement

Bias Prevention and Fair Evaluation (00:32:33)

• Focus on behavioral data rather than demographic information
• Human-in-the-loop approach for final decisions
• Importance of transparency in decision-making
• Feedback collection for system refinement

Operational Impact (00:38:18)

• Creation of separate workflows for high-risk applications
• Quarantine system for suspicious applications
• Balance between fast processing and security
• Resource protection and cost savings
• Improved student experience through faster legitimate application processing

Future Developments (00:42:55)

• Plans for generative UI in student experience
• Development of proactive AI systems
• Enhanced personalization capabilities
• Integration with student hub
• Dynamic workflow planning based on student behavior

Benefits and Innovation (00:46:18)

• Improved data integrity in application processing
• Transparent decision-making process
• Enhanced speed without compromising security
• Better resource allocation for legitimate applications

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Connect With Our Co-Hosts:
Ardis Kadiu
https://www.linkedin.com/in/ardis/
https://twitter.com/ardis

Dr. JC Bonilla
https://www.linkedin.com/in/jcbonilla/
https://twitter.com/jbonillx

About The Enrollify Podcast Network:
Generation AI is a part of the Enrollify Podcast Network. If you like this podcast, chances are you’ll like other Enrollify shows too! Some of our favorites include The EduData Podcast and Visionary Voices: The College President’s Playbook.

Enrollify is made possible by Element451 —  the next-generation AI student engagement platform helping institutions create meaningful and personalized interactions with students. Learn more at element451.com. 

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