Thousands of “ghost students” use AI to steal millions in student loans, DOJ says

The DOJ has charged five people in its first broad federal crackdown on "ghost students," fraudsters who use stolen identities and AI to pose as college students and collect federal student aid, seizing over $750,000 in cryptocurrency from a network associated with Kenyan nationals. Officials said the Department of Education has identified over 830,000 potentially fraudulent federal student aid accounts, with losses approaching $130 million if all are ghost students, and more than $32 million in actual loss tied to the charged subjects. The scheme targets high school graduates who never attended college, with AI used to fill out applications, complete coursework, and simulate attendance in virtual sessions.