22:23Machine-translated from Azerbaijani by AIRead in Azerbaijani
US Investigates Fake Student Scheme That Caused More Than $200 Million in Losses
The US Department of Justice has announced the initial results of its “Operation Ghostbusters” investigation. Fraudsters used stolen identity information to prepare student loan applications. Artificial intelligence was used to make it appear that fake students were attending online classes. As a result, the government is believed to have lost more than $200 million (approximately 340 million manats).
The network enrolled fake students in online colleges and universities. The main portion of the loans was paid to these institutions as tuition, while the remaining money was transferred to the fraudsters’ bank accounts. Intermediaries moved the funds from accounts in the US to accomplices abroad. The debts were left in the names of people whose identity information had been used without their knowledge.
Various colleges and universities in the US began noticing suspicious applications submitted to the federal student aid program in 2021. The Department of Education’s Office of Inspector General referred the case to the FBI’s Richmond office. More than 40 fraud cases are currently under investigation. The FBI’s 26 field offices and 20 federal prosecutors’ offices have joined the investigation.
Five people have been charged as part of the operation. During the investigation, more than $750,000 (approximately 1,275,000 manats) in cryptocurrency linked to the scheme was seized. The funds were found to be connected to a network associated with Kenyan individuals. This is the first international seizure carried out by the US in Kenya in connection with such a scheme.
The US is deploying systems that automatically detect suspicious applications to stop student loan fraud. However, stricter identity checks and legitimate applications also being flagged as suspicious create additional difficulties. Low-income and vulnerable students are affected the most. In such cases, it also becomes more difficult for them to receive legitimate financial aid.