‘In a flash, money vanishes overseas…': DOJ uncovers massive ‘Ghost Student’ identity theft scheme

The DOJ has launched Operation Ghostbusters, targeting an alleged nationwide “ghost student” fraud network accused of stealing American identities to obtain federal student loans and financial aid. Federal prosecutors announced charges against five defendants and the seizure of more than $750,000 in cryptocurrency, while investigators say money was allegedly routed through networks connected to Kenya. The crackdown comes as federal authorities investigate AI-assisted fake enrollments and millions in suspected losses, while California colleges have reported unusually high levels of fraudulent applications.