The Justice Department charged five people and seized over $750,000 in cryptocurrency tied to a scheme that used stolen identities to enroll fake students in colleges and AI to simulate their coursework and attendance, keeping federal aid flowing. The case, part of an effort called Operation Ghostbusters, began after the Department of Education's Inspector General flagged unusual patterns in federal aid data, which the FBI traced through bank accounts and crypto wallets linked to Kenyan nationals.
techspot.com
· 2026-11-01
The Justice Department announced indictments stemming from Operation Ghostbusters, a probe into a scheme using stolen identities and AI tools to fake enrollment in online classes and obtain federal student loans. Officials say the government lost over $200 million, with more than 40 open cases spanning 26 FBI field offices and 20 U.S. Attorney's offices; five defendants have been charged and over $750,000 in cryptocurrency seized.
tomshardware.com
· 2026-10-31
The Justice Department charged five people in a scheme that used stolen identities to enroll fake students in colleges and collect federal student loan funds. Fraudsters allegedly used AI to complete coursework and simulate attendance in virtual classes, while funneling leftover aid money into accounts controlled by money mules. The DOJ also seized over $750,000 in cryptocurrency tied to a network linked to Kenyan nationals.
yro.slashdot.org
· 2026-10-30
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