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U.S. Education Department Says Identity Verification Blocked $1B in Student-Aid Fraud

The U.S. Department of Education says it blocked more than $1 billion in attempted student-aid fraud in 2025 after requiring mandatory identity verification for certain first-time FAFSA applicants.

2025-12-11CC-BY-4.0digital-idfraud

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Key Facts

  • Flagged applicants must present unexpired government ID in person or via live video, according to the department.
  • The department cited detection of high volumes of suspect identities as a driver for stronger front-end proofing.
  • The change reflects a broader shift toward higher-assurance identity proofing to counter automated fraud.

Card Text

As fraud becomes more automated, agencies and platforms are increasingly moving identity proofing earlier in the process, trading additional friction for reduced downstream losses.

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