Oct 29, 2026 · 10 min · 12 segments
Federal prosecutors crack down on a nationwide fraud scheme involving “fake students,” Alaska’s governor orders a probe into a Democrat campaign’s role in the “Decoy Dan” plot, and Pete Hegseth fires…

Prosecutors say they've cracked a nationwide fraud scheme aimed at ripping off taxpayers through federal student loans to fake students.

The Justice Department's chief prosecutor in charge of fraud, Assistant Attorney General Colin McDonald, described the scheme today.
The methods used in these schemes are increasingly sophisticated.
Some use superintelligence to fill out college applications and complete coursework.
So it looks like the ghost student is actually completing the class.
Some even create the appearance of a fake student in an online classroom to trick schools into believing a real person is present.
The goal is to keep the ghost student in school for as long as possible, semester after semester after semester, stealing money from the taxpayer.

According to the DOJ, the fraudsters faked student loan applications using stolen U.S. identities.

The money then received through federal loan aid was then routed to bank accounts controlled by foreign actors.

The DOJ said so-called money mules in the U.S., including Kenyan nationals, helped facilitate the fraud.

Prosecutors say they've cracked a nationwide fraud scheme aimed at ripping off taxpayers through federal student loans to fake students.

The Justice Department's chief prosecutor in charge of fraud, Assistant Attorney General Colin McDonald, described the scheme today.
The methods used in these schemes are increasingly sophisticated.
Some use superintelligence to fill out college applications and complete coursework.
So it looks like the ghost student is actually completing the class.
Some even create the appearance of a fake student in an online classroom to trick schools into believing a real person is present.
The goal is to keep the ghost student in school for as long as possible, semester after semester after semester, stealing money from the taxpayer.

According to the DOJ, the fraudsters faked student loan applications using stolen U.S. identities.

The money then received through federal loan aid was then routed to bank accounts controlled by foreign actors.

The DOJ said so-called money mules in the U.S., including Kenyan nationals, helped facilitate the fraud.
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