US Department of Justice announces Operation Ghostbusters to combat student loan fraud

The US Department of Justice has announced the results of Operation Ghostbusters, a nationwide investigation into a large-scale student loan fraud scheme. Criminal actors allegedly used stolen identities to create fraudulent Federal Student Aid (FAFSA) accounts, enrolling fake or “ghost students” in online courses to siphon millions of dollars in federal financial aid.

According to the DOJ, the scheme involved a transnational network. Scammers used stolen US identities to enroll in educational institutions, with funds being sent to local helpers in the US before being wired to criminal accounts overseas. In one specific instance, three individuals in the US worked with scammers in Kenya between 2021 and early 2026 to steal over $1 million. The DOJ has seized more than $750,000 in cryptocurrency tied to a network associated with Kenyan nationals.

While some institutions received portions of the aid, significant sums were diverted to scammers. The fraud has also left victims, who did not attend college, with unexpected student loan debt. The DOJ reports that over 40 pending fraud cases are currently being handled by 26 FBI field offices and 20 US prosecutor offices. Five individuals have been charged as part of this initial phase of the operation.