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

The Department of Justice has launched an enforcement effort against organized fraud rings using generative AI to create fake identities and enroll them in colleges to illicitly secure federal student loans. These schemes involve thousands of non-existent students, resulting in millions of dollars in losses from the government financial aid system. The crackdown aims to tighten verification processes for FAFSA applications to prevent further exploitation by automated systems.