Treasury identifies $270 million in federal student aid programs it ties to possible fraud

The Treasury Department identified approximately $270 million potentially linked to fraudulent activity involving federal student aid programs. Treasury’s Financial Crimes Enforcement Network (FinCEN) has referred the findings to federal investigators for further review, Fox News reported. 
In July, FinCEN issued alerts to financial institutions warning about possible fraud schemes involving federal student aid refunds. Schools and payment contractors regularly issue student aid refunds electronically. Criminals may move stolen aid through money mules, shell companies and fraudulent bank accounts, the alert explained. 
Many of the schemes involve fraudulent enrollments — called “ghost student” schemes — in which criminals use stolen personal information, including names and Social Security numbers, to enroll fake students using the stolen identities. 
The financial institutions filed nearly 100 suspicious activity reports following the alert, according to the Treasury Department. A review by FinCEN identified more than 20,000 potentially suspicious transactions, totaling $270 million. 

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