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Five charged as DOJ cracks down on AI-assisted 'ghost student' student loan fraud
Ourtake
Victims often learn of the scheme only when the government demands repayment of loans taken out in their names years later.
What happened
The US Department of Justice charged five people in a federal crackdown on 'ghost students', fraudsters who stole the identities of hundreds of Americans to enroll in colleges and collect federal student aid. The fraudsters reportedly used AI to fill out applications, complete coursework and simulate attendance in virtual classes. Officials say actual losses exceed $32 million and may be substantially higher.
Sources
- Ars Technica · Thousands of “ghost students” use AI to steal millions in student loans, DOJ says (opens in a new tab)
- tomshardware.com · 'Ghost Students' using AI to apply for student loans with stolen identities — DOJ's Operation Ghostbusters busts $200 million ring faking online college attendance, unsuspecting victims saddled with student debt they didn’t sign up for (opens in a new tab)