Thousands of “ghost students” use AI to steal millions in student loans, DOJ says
Summary
The US DOJ charged five individuals in a nationwide crackdown on 'ghost students'—fraudsters who use stolen identities and AI-enabled automation to fraudulently obtain federal student aid. The scheme involves FAFSA applications, fake enrollment, and money mules, with AI used to complete coursework and simulate attendance. The DOJ cites large-scale data analysis and cryptocurrency seizures, highlighting ongoing challenges in fraud detection and potential false positives affecting real students.