The U.S. Department of Education has blocked more than $1 billion in fraudulent federal student aid applications, identifying nearly $90 million that had already been disbursed to illegitimate recipients. This intervention targets a scheme involving "ghost students," a term used to describe stolen or fake identities that enroll in colleges to collect aid meant for legitimate borrowers. Officials faulted previous administration policies for weak identity verification controls, noting that fewer than 1% of students were required to verify their identity during the pandemic era. In response, the department integrated a new identity verification system into the online FAFSA application, estimating it will save taxpayers more than $1 billion this cycle. Vice President JD Vance announced that more than 870,000 borrowers tied to alleged fraud would be suspended from future federal loan programs. Mallory Wortman, a senior fraud investigator at Abrigo, warned that fraudsters use artificial intelligence to fabricate identities and exploit channels with lax controls. She noted that the primary objective is often attaining the aid rather than pursuing an education. Wortman advised students and parents to watch for red flags such as multiple applications with common information and unusual enrollment patterns. The best defense, according to Wortman, is keeping a close eye on personal financial information to detect suspicious activity.