Education Dept says it blocked $1B student‑aid fraud
The U.S. Department of Education says enhanced fraud controls launched in June have thwarted more than $1 billion in attempted federal student‑aid fraud, including schemes involving “ghost students,” AI bots and coordinated international rings. The agency now requires first‑time applicants to verify a valid government photo ID in person or via live video with school officials, after identifying roughly $90 million improperly disbursed in 2024, including $30 million to deceased identities and more than $40 million tied to bot‑generated applications.
📌 Key Facts
- New ID verification rule for first‑time applicants: in‑person or live‑video presentation of a valid government photo ID to an authorized school official, with documentation retention.
- Education Department claims more than $1 billion in fraudulent disbursements prevented since June.
- Earlier findings included ~$90M already disbursed in 2024 to suspected scammers (about $30M to deceased identities, >$40M linked to bot‑generated applicants).
📊 Relevant Data
Black non-Hispanic Americans are 6.2% likely to lack a non-expired government-issued photo ID, compared to 2.3% for White non-Hispanic Americans, with population estimates of 1.86 million Black Americans lacking such ID.
New Analysis: Millions of Americans Lack ID Required to Vote — VoteRiders
Hispanic Americans are 6.1% likely to lack a non-expired government-issued photo ID, compared to 2.3% for White non-Hispanic Americans, with population estimates of 1.86 million Hispanic Americans lacking such ID.
New Analysis: Millions of Americans Lack ID Required to Vote — VoteRiders
Sophisticated fraud rings targeting US college financial aid are operating from countries such as Pakistan, Bangladesh, and Vietnam.
How scammers are siphoning college financial aid with stolen student identities — PBS