Eric Mack
October 29, 2026
Ghost students enrolled using stolen identities siphoned federal financial aid into offshore accounts and cryptocurrency.
Federal law enforcement authorities have launched a nationwide crackdown dubbed, “Operation Ghostbusters,” to dismantle an international student aid scheme that investigators estimate has been operating since 2021, “potentially reaching several hundred million dollars” in taxpayer losses.
Announcing the first wave of enforcement actions, Assistant Attorney General Colin McDonald revealed that organized syndicates have systematically stolen the identities of working Americans who never applied to college, using their information to enroll fictional “ghost students” at institutions nationwide and siphon federal financial aid directly into offshore accounts.
“These are not isolated errors,” McDonald said at a news conference Thursday. “This is organized fraud at scale.”