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Fake students used AI to attend class, and the government says it cost taxpayers millions

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Connecting the dots: Federal prosecutors in Nebraska, Virginia and New Jersey have charged five people in a student aid fraud scheme that used AI to fake coursework and class attendance. The case also led to a cryptocurrency seizure in Kenya. It shows how AI is making fake students harder to spot, just as the automated identity checks meant to stop them raise new concerns about real students being wrongly flagged.

Unusual patterns in federal student aid data led the Justice Department to charge five people and seize more than $750,000 in cryptocurrency tied to a network associated with Kenyan nationals. The charges are the first results of a broader federal effort, which the department calls Operation Ghostbusters, to crack down on "ghost student" fraud.

The schemeused stolen identities to enroll fake students...

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Binance says net outflows were $3.64B, or 2.1% of assets, in the 9.5 hours after it began restoring withdrawals; DefiLlama puts 24-hour net outflows at $4.05B

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