Treasury identifies $270 million in potential federal student aid fraud

The U.S. Treasury Department has identified approximately $270 million in transactions potentially linked to fraudulent activity within federal student aid programs. The Financial Crimes Enforcement Network (FinCEN) flagged more than 20,000 suspicious transactions for further review by federal investigators.

Many of these schemes involve “ghost student” tactics, where criminals use stolen personal information, such as names and Social Security numbers, to enroll fake students. Criminals often move the stolen aid through shell companies, fraudulent bank accounts, or money mules. Following a FinCEN alert issued in July, financial institutions filed nearly 100 suspicious activity reports regarding these refund schemes.