07/27/2026

FinCEN Issues Alert on Fraud Schemes Targeting Federal Student Aid

U.S. Department of the Treasury

WASHINGTON—Today, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued an Alert urging financial institutions to detect, prevent, and report suspicious activity connected to fraud schemes targeting student aid programs administered by the Federal government. Today’s action is the latest in Treasury’s efforts, led by President Trump and Vice President Vance, to eliminate government benefits fraud. 

“Every dollar stolen from Federal student aid is a dollar taken from taxpayers and deserving students,” said Secretary of the Treasury Scott Bessent. “The Trump Administration will not tolerate criminals who exploit government programs for personal gain. Treasury is working with financial institutions and law enforcement to identify these fraud schemes, recover stolen funds, and hold those responsible accountable.”

Fraud rings use stolen and fraudulent identities, as well as other tactics, to enroll in educational institutions and unlawfully acquire funds from Federal student aid programs. The schemes not only result in losses to Federal student aid programs, but in some cases, real students face difficulties enrolling in classes because of the number of fraudulently enrolled “students.”