Canada flagged 150,000 students but ignored 800 fraud cases, audit reveals

Canada flagged more than 150,000 international students for possible violations of study permit rules but did not act on 800 cases linked to fraud, according to a 2026 audit by the Auditor General of Canada.

The report said educational institutions identified over 153,000 students in 2023 and 2024 as potentially not complying with conditions such as staying enrolled and actively pursuing studies. However, the department had funding to investigate only about 2,000 cases annually, leaving most cases unexamined.

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Out of 4,057 investigations launched, only a small number of students were confirmed as non-compliant. Around 41% of cases could not be closed because students did not respond to requests for additional information.

In a separate finding, the audit identified 800 study permits issued between 2018 and 2023 where applicants used fraudulent documents or misrepresented information. The department did not take follow-up action in any of these cases.

These cases included applicants who claimed education from institutions that did not exist or provided false credentials. The report said authorities could have placed alerts on files, reviewed immigration status, or taken enforcement steps but did not do so.

As a result, 92% of these individuals later applied for other immigration permits, including extensions, work permits, or permanent residency.

The audit said limited follow-up on both non-compliance and fraud cases raises concerns about the system’s ability to ensure that only genuine students remain in Canada and follow permit conditions.