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

What happened: The DOJ charged five individuals in its first broad federal crackdown on "ghost students," fraudsters who steal identities to pose as college students and take student loans. The scheme relied partly on AI. Key numbers: More than $750,000 in cryptocurrency seized from a network associated with Kenyan nationals. Five individuals charged. Why it matters: Assistant Attorney General Colin M. McDonald credited new fraud-detection measures for the arrests and called it the first international seizure of its kind in Kenya, warning the crackdown has only begun.

The DOJ charged five individuals in its first broad federal crackdown on "ghost students," fraudsters who steal identities to pose as college students and take student loans. The scheme relied partly on AI.

Assistant Attorney General Colin M. McDonald credited new fraud-detection measures for the arrests and called it the first international seizure of its kind in Kenya, warning the crackdown has only begun.