The Education Department launched a new risk assessment tool last month.
Education Secretary Linda McMahon recently discussed the level of fraud officials have uncovered in Federal Student Aid applications. The Education Department launched a new risk assessment tool in late April to screen federal student aid applicants, which uncovered approximately 300,000 fraudulent applications that could have resulted in $60 million in student loans.
“I’m really proud of one of the things we’ve done, and that is we’ve just really totally revamped the FAFSA program, which is the application that students fill out for student aid as they are going to college,” Secretary McMahon said.
“But, as like many things in the government, we found there was a lot of fraud going on, that there were BOTS that were applying for these loans, there were ghost students, there were dead people who were getting…
This type of fraud targets the supply chain and accounts payable departments of businesses.
- Invoice Manipulation: Criminals intercept a legitimate invoice between a supplier and a client and change the banking details to their own. The client pays the bill thinking they are paying their trusted vendor.
- Kickbacks and Bribery: A vendor secretly pays an employee of the purchasing company to ensure their bid is successful or to overlook inflated pricing.