Justice Department charges five in 'ghost student' aid scheme it says used AI to fake coursework
Officials say fraudsters used stolen identities to enroll fake students and divert federal student aid to Kenya.
The U.S. Justice Department said Oct. 29 that it has charged five people in a scheme that used stolen identities to enroll fake "ghost students" and collect federal student aid.
The department said fraudsters filed Free Application for Federal Student Aid forms, or FAFSA, in other people's names. Aid refunds were then sent to bank accounts controlled by people abroad, with help from U.S.-based helpers, including Kenyan nationals, who moved the money. Officials said fraudsters used what they called "super intelligence" to keep fake students in classes and complete coursework. The department did not explain the term.
Officials seized more than $750,000 in cryptocurrency in Kenya and estimated the fraud at more than $200 million since at least 2021. Investigators also flagged 830,840 possibly fake student aid accounts tied to nearly $130 million, the department said.
An indictment is only an accusation, and the defendants are presumed innocent.