Kenyans are arrested in $130m US 'ghost student' scam that used AI and fake enrollees to steal college aid

Operation Ghostbusters, the DOJ's student-aid fraud crackdown, has produced charges against Kenyan nationals in Nebraska, New Jersey and Virginia, with prosecutors putting losses at potentially several hundred million dollars since 2021. Scammers harvested real people's identities, deployed AI to handle coursework and paid workers $1 to sit in front of screens simulating attendance at online courses.

At one point in 2024, one-third of California's community college applications were found to be ghost students.

Real victims have tried to apply for college only to find their identities already enrolled and their financial aid entitlement spent, which Assistant Attorney General Colin McDonald called 'a mess that no one should have to endure'.