DOJ targets AI-facilitated ghost student fraud

Department of Justice has launched a broad crackdown on 'ghost student' fraud using AI to create fake college identities and steal federal student aid. Five individuals have been charged, and over $750,000 in cryptocurrency was seized from a Kenyan-linked network. More than 830,000 potentially fraudulent FAFSA accounts were identified, with estimated losses near $130 million. Fraudsters used AI to complete coursework and simulate classroom attendance. Funds were funneled through U.S. and foreign bank accounts and crypto wallets, with some individuals receiving over $1 million in fraudulent aid deposits.

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