BankMobile breach leaves 400 California students with stolen financial aid
Approximately 65,000 student accounts were affected by data changes, forcing many to rely on paper checks or skip meals while awaiting refunds.
By Amit Chukwu ·
About 400 California community college students had financial aid funds stolen from their accounts due to a security breach in the BankMobile app. The mobile banking system is used by roughly 60 community college districts to distribute school and federal aid. BankMobile officials told state college administrators that unauthorized individuals accessed roughly 1,000 accounts and altered data in approximately 65,000 student profiles.
The vulnerability emerged in July when BankMobile changed its account verification process. State officials said this update created a gap that allowed attackers to hijack and modify account information. By October, the California Community Colleges Chancellor’s Office warned districts to halt electronic payments through the platform. Many campuses, including Los Rios and Butte College, switched to issuing paper checks for disbursements that had already been scheduled.
Riverside Community College District paused direct deposits on Oct. 8 for about 3,400 students. John Geraghty, the district controller, said the district returned to standard direct deposit procedures after BankMobile presented new security protocols. Riverside students received their latest payments on Wednesday. In contrast, Los Rios College announced on Monday that it is moving to Nelnet for future disbursements. The district said it will continue writing paper checks until the new system is fully secure and operational.
The delay has forced students to make difficult choices between basic needs and educational materials. Isabella La Rocca, 21, at Santa Rosa Junior College, waited past a Sept. 16 deadline for her refund. She said she had to pay for gas and books out of pocket. At Los Angeles Pierce College, Julia Ramirez, 27, has avoided buying textbooks that cost at least $64. She said she now weighs the cost of a meal against the price of a required text.
Communication from some financial aid offices has been sparse. Ramirez said she contacted her office three times but was told to wait two weeks, then one week, with no clear resolution. La Rocca has not heard from her campus office either. She plans to request a physical check but must travel 30 minutes from her Petaluma classes to the main office to pick it up.
Los Rios College directed students to its Basic Needs Center for help with food, housing, and transportation. The center aims to support students while their disbursements are delayed. Ramirez said she intends to use her funds for textbooks and food once they arrive. She noted that the stress of choosing between eating and studying adds to the difficulty of attending college.
The breach has disrupted the standard semester timeline where refunds typically arrive within the first few weeks. While some students have received their money, others remain without funds or clear updates on when they will be paid.
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