How a hidden scam plaguing college campuses has racked up a multimillion-dollar price tag

By Fox News · Fox News

A hidden scheme draining millions from the federal student aid system and infiltrating college campuses has emerged as a key target of the Trump administration's fraud crackdown, with officials faulting Biden-era identity verification policies for opening the door to it. One fraud expert is now highlighting the red flags students and parents must look out for as the fall semester begins, warning fraudsters are fabricating identities to enroll at colleges and collect aid that is meant for legitimate students. "People, scammers specifically, look for vulnerable places like student loans and unemployment fraud to take advantage of those channels because historically they have been lax in their controls," Mallory Wortman, senior fraud investigator at financial crime prevention firm Abrigo, told Fox News Digital. In June, the Education Department also said it saved taxpayers nearly $200 million after requiring high-risk applicants to present government-issued identification when applying for federal student aid, Fox News Digital previously reported. The identity verification system was integrated into the online FAFSA application, with department officials estimating it will save taxpayers more than $1 billion this cycle. STOLEN IDS SOLD FOR ‘HAPPY MEAL’ PRICES FUEL BILLIONS IN US BENEFIT FRAUD The department took aim at weak fraud safeguards under former President Joe Biden, accusing his administration of requiring less than 1% of students to verify their identity following their FAFSA submission during the COVID-19 pandemic era. The administration has also paired those safeguards with new enforcement efforts. Vice President JD Vance recently announced that more than 870,000 borrowers tied to alleged COVID-era fraud would be suspended from future federal loan programs, saying they could ultimately face federal prosecution. But the crackdown reflects a simple reality, according to Wortman, who said fraudsters are quick to take advantage of any opportunity where governme…