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Ars Technica · October 31, 2026 · On the brief until November 14, 2026

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

Criminal JusticeHigher EducationPublic Policy
THE AI ANGLE
Simulating student attendance and completing coursework for fake accounts

Federal prosecutors charged five individuals in a scheme using artificial intelligence to fake college coursework and steal millions in financial aid. In response, the Department of Education introduced automated identity verification tools that now risk delaying funds for legitimate low-income applicants.

Summary written by AI Business Lens with an AI model from the article at arstechnica.com. It is not the article, and the publisher has not reviewed it. For publishers.

THE TEACHING ANGLE
Automated fraud screening protects public funds, but strict digital identity checks can lock out low-income students who lack government identification.

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