The U.S. Department of Justice (DOJ) just announced indictments resulting from Operation Ghostbusters, which investigated widespread student loan fraud. According to the agency, bad actors used stolen identities to sign up for student loans and used AI to complete the application, making it appear that the fake student was attending online classes. While the schools receive the majority of the proceeds of the fraudulent student loan, the remaining amount is funneled into the bank accounts of the fraudsters, who then use mules to move the money from U.S. bank accounts to overseas conspirators. On the other hand, unwitting victims who have skipped college and instead directly joined the workforce after high school are saddled with student debt for a degree they never even signed up for.Multiple community colleges and universities across the United States started suspecting fraud in the Federal Student Aid (FAFSA) program in 2021. Estimates suggest the U.S. government lost over $200 million because of this activity, and the U.S. Department of Education Office of the Inspector General referred the case to the FBI Richmond Field Office. Currently, more than 40 open fraud cases involve 26 FBI field offices and 20 U.S. Attorney’s offices. The DOJ called it Operation Ghostbusters, which has already resulted in the indictment of five individuals.How much money are you willing to spend during the Black Friday sales? “Today, we are announcing the first results of Operation Ghostbusters — a nationwide effort to stop a major fraud scheme targeting federal student aid, low-income Americans, and the American taxpayer,” Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division said in the statement.“The Department is charging five defendants and announcing the seizure of more than $750,000 in cryptocurrency tied to this scheme through a network associated with Kenyan nationals. This is the first international seizure of its kind in Kenya. If you steal American identities, if you steal taxpayer dollars, if you exploit programs meant to help students build a future — we will find you. Whether you are in Nebraska, New Jersey, Virginia, or Nairobi, we will pursue you.”While online fraud has existed since the birth of the internet, AI has let scammers become more sophisticated and target bigger payouts. One example is a scammer who used an AI-generated image of Brad Pitt to scam a 53-year-old woman out of $850,000. However, larger groups also use AI tools for their money-making schemes, such as North Korea, which has reportedly used AI to help its workers get jobs in Western companies and earn money to fund the nation’s coffers. The U.S. is taking steps to shut down student loan fraud by deploying automated fraud detection systems, but the added burden of identification and false positives is negatively affecting the country's most vulnerable students.