DOJ's first crackdown on AI-assisted "ghost students" seizes $750K+ in crypto

Ars Technica AI · rss · 2026-10-31

The DOJ has charged five individuals in the first broad federal crackdown on "ghost students"—fraudsters who steal hundreds of Americans' identities to pose as college students and siphon student loans, partly using AI.

After data analysis flagged likely fraudsters, the DOJ seized over $750,000 in cryptocurrency from a network associated with Kenyan nationals. Assistant AG McDonald called it "the first international seizure of its kind in Kenya" and warned the crackdown has only just begun.

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