Anonymous (ID: IW2QFCEp)
AI was used to steal millions (...) 10/31/26(Sat)03:55:01 No.545245444

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AI was used to steal millions worth of student loan Anonymous (ID: IW2QFCEp) 10/31/26(Sat)03:55:01 No.545245444

>>545245576 >>545245728 >>545246265 >>545246341

https://arstechnica.com/tech-policy/2026/10/doj-exposes-ghost-students-using-ai-to-complete-courses-steal-student-loans/

In a press release Thursday, the Department of Justice said it had uncovered a large-scale scheme relying partly on AI. The DOJ seized more than $750,000 from "a network associated with Kenyan nationals" after data analysis helped flag likely fraudsters.

Assistant Attorney General Colin M. McDonald of the DOJ's National Fraud Enforcement Division credited new fraud-detection measures implemented by the Trump administration for the arrests. He said that "this is the first international seizure of its kind in Kenya," while warning fraudsters that the crackdown has only just begun.

At a press conference, McDonald was joined by FBI and Department of Education officials to explain how the scheme works. It starts with bad actors purchasing personally identifiable information (PII) of Americans.

Once they have that sensitive data, they fill out the Free Application for Federal Student Aid (FAFSA) while seeking to enroll in universities and community colleges. If accepted, student aid is distributed first to schools to cover tuition and fees, but any leftover money is deposited into bank accounts controlled by the fraudsters. Dozens of Americans have opened bank accounts to act as money mules for fraudsters, the DOJ said.

To keep money flowing, bad actors use AI to fill out applications, complete coursework, and even make it appear that a student is attending virtual sessions. "It looks like the ghost student is actually completing the class," McDonald said at the press conference.

The goal is to keep the ghost student in school for as long as possible, semester after semester after semester." So far, the DOE has "identified over 830,000 potentially fraudulent federal student aid accounts created by using this PII of US citizens," officials said at the press conference.