Today, the U.S. Department of Education (the Department) launched a new, real-time fraud detection capability for the Free Application for Federal Student Aid (FAFSA®) form, marking the largest and most comprehensive, nationwide fraud prevention effort in the agency’s history. Effective immediately, fraud detection is built directly into the FAFSA itself, with every applicant evaluated in real-time using risk-based identity screening. Applicants who display a certain level of fraud risk will now be required to present government-issued identification before accessing federal student aid funds such as Pell Grants and federal student loans.
The Department also recently began conducting a one-time review of all previously submitted 2026-27 FAFSA forms using the new screening technology, ensuring that all federal student aid program dollars are supporting students and families, not…
This remains the most prevalent form of financial crime globally. It targets the direct access points to your money: your cards and your bank accounts.
- Skimming: Criminals use small devices called “skimmers” placed over ATM or point-of-sale card slots to capture the data from your card’s magnetic strip.
- Card-Not-Present (CNP) Fraud: This occurs during online shopping where a physical card isn’t required. Thieves use stolen card numbers, expiry dates, and CVV codes to make unauthorized purchases.
- Account Takeover (ATO): A hacker gains access to your online banking credentials (often through malware or phishing) and changes the contact details or passwords, locking you out while they drain your funds.