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

The US Department of Justice has charged five individuals in a large-scale scheme to steal the identities of hundreds of Americans to pose as fake college students and steal student loans, using AI to fill out applications, complete coursework, and make it appear that a student is attending virtual sessions. The scheme involves purchasing personally identifiable information (PII) of high school graduates who never attended college and using it to fill out the Free Application for Federal Student Aid (FAFSA). The DOJ seized over $750,000 in cryptocurrency from a network associated with Kenyan nationals. Officials warn that the crackdown has only just begun and that the DOJ will pursue anyone who steals American identities or exploits programs meant to help students.