Student Aid Fraud and Cybercrime

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.