The Justice Department says it has uncovered a sprawling student aid fraud scheme that targets Americans who never set foot on a college campus. According to officials, criminals allegedly steal personal information and use it to build fake students, then collect federal financial aid paid for by taxpayers. Reports on the announcement say investigators have flagged more than 830,000 potentially fraudulent accounts, and the effort has been dubbed Operation Ghostbusters. Assistant Attorney General Colin McDonald described it as organized fraud at scale, not a string of isolated mistakes. Victims have been identified across the country, and some may not know their identity was used until a debt or a credit problem shows up.

What makes the scheme so unsettling is how much of the work is allegedly done by artificial intelligence. McDonald says fraudsters use AI to complete college applications, submit coursework, and even create the appearance of a student attending virtual classes. The goal, he explained, is to keep the "ghost student" in school for as long as possible, so schools believe a real person is enrolled and the aid keeps flowing. The charges are allegations and have not been proven in court. Still, the case raises questions for families and colleges alike about how a person who does not exist can pass as a student for so long. It also raises the question of what you should do if your name turns up on a loan you never took out.