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31 October 2026

DOJ charges five in $200 million scheme using AI to fake student loan applicants

First reported

Ars Technica ran this on , a day before the next source picked it up.

  • Fraudsters bought stolen identities of mostly high school graduates who never attended college, then filed federal student aid applications in their names.
  • AI was used to complete applications and coursework and to make fake students appear in online classes, keeping the money flowing semester after semester.
  • The Justice Department estimates losses above $200 million, seized over $750,000 in crypto linked to Kenyan nationals, and says more than 40 cases are open.

Reported by Tom's Hardware, Ars Technica