The US Department of Justice launched Operation Ghostbusters, an investigation into AI-generated fake students defrauding over $200 million in student loans.

The US Department of Justice announced the results of Operation Ghostbusters on October 31 in local time. The operation investigated fraud against the Federal Student Aid (FAFSA) program. Fraudsters used stolen identities to apply for student loans and employed AI to complete applications, making it appear that fake students were enrolled in online courses. Some remaining funds flowed into the fraudsters' accounts and were transferred overseas, leaving multiple victims who never attended college with debt.