US Launches 'Operation Ghostbusters' Crackdown on $200M Student Aid Fraud

The US Department of Justice has announced a nationwide enforcement operation dubbed "Operation Ghostbusters" targeting international fraud rings that stole more than $200 million in federal student aid by enrolling fictitious and identity-theft victims in colleges across the country.

According to federal authorities, the sophisticated scheme involved using stolen personal details of US citizens to register them for higher education without their knowledge. The perpetrators then submitted financial aid applications through the federal FAFSA system and redirected the funds to accounts under their control.

To maintain the facade of active enrollment, some suspects employed advanced technological tools to simulate virtual students in online classes and submit academic assignments. Investigations revealed that the criminal networks have been operating since at least 2021, prompting authorities to flag hundreds of thousands of suspicious accounts.

Authorities have so far filed charges against five individuals and seized over $750,000 in cryptocurrency linked to a network operating between the United States and Kenya. The investigation highlights international cooperation between US law enforcement and Kenyan authorities to dismantle the financial pipelines and extradite suspects.