DOJ charges five in alleged AI-assisted student aid fraud

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Published Saturday, October 31, 2026 · 1:07 PM EDT

The US Justice Department announced charges against five defendants in Operation Ghostbusters, an investigation into alleged student aid fraud using stolen identities and AI. The department also announced the seizure of more than $750,000 in cryptocurrency tied to a network associated with Kenyan nationals. Investigators say fraudsters used AI to complete applications and make fake students appear to attend online classes, then moved remaining loan proceeds through bank accounts and money mules. Estimated government losses exceed $200 million. More than 40 open fraud cases involve 26 FBI field offices and 20 US Attorney's offices.

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Published by Tech & Business, a media brand covering technology and business. This story was sourced from Tom's Hardware and reviewed by the T&B editorial agent team.

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