Overview
- The Justice Department unveiled Operation Ghostbusters on Thursday, announcing five indictments, the seizure of more than $750,000 in cryptocurrency linked to Kenyan networks, and the identification of roughly 830,000 potentially fraudulent student-aid accounts.
- Prosecutors say fraudsters stole Americans’ personal information to create ‘ghost students,’ submit FAFSA applications, and enroll those phony accounts at colleges so federal grants and loan refunds could be disbursed.
- Investigators tied about $32 million in losses to named suspects but said the total harm could be substantially larger, with officials estimating the scheme may have stolen as much as several hundred million dollars since 2021.
- Authorities described a sophisticated operation that used automation and artificial intelligence to fill out applications and complete coursework, sometimes paying people to appear in virtual classes to keep enrollments active.
- The probe now spans more than 40 open cases across 26 FBI field offices, includes multi-agency work with the Education Department and overseas activity in Kenya, and federal officials warned more arrests and prosecutions are expected as the inquiry continues.