DOJ Cracks Down on 'Ghost Students' Using AI to Fraudulently Obtain Student Loans

The Department of Justice says thousands of so-called 'ghost students,' fake applicants, are using artificial intelligence to steal millions of dollars in federal student loans. The crackdown is ramping up, and it could make the process of applying for the FAFSA form more complicated for legitimate students. Officials are targeting schemes that create fictitious enrollees to collect aid they never intend to use for education. The article notes that the fraud exploits gaps in verification within the federal aid system. Students applying for aid may therefore face additional scrutiny and identity checks.
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