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Subsequent analysis found continued patterns, involving 12,026 dependent student identities tied to 1,991 parent identities where a relationship is unlikely. These submissions present a high likelihood of fraud, with potential losses of nearly $3.5 million in federal student aid for award year 2024–2025.",{"@graph":69,"@context":122},[70,84,105],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":40,"@type":76,"position":81},"https://docshare.wps.com/document/research-report/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/fraud-advisory-potential-fraud-involving-fafsa-from-dependent-students-with-unusual-parent-data/587355/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/fraud-advisory-potential-fraud-involving-fafsa-from-dependent-students-with-unusual-parent-data/587355.png","ImageObject",300,407,{"name":92,"@type":93},"วิน","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-20","2026-10-15",true,{"@type":102,"interactionType":103,"userInteractionCount":14},"InteractionCounter",{"@type":104},"ViewAction",{"@type":106,"mainEntity":107},"FAQPage",[108,114,118],{"name":109,"@type":110,"acceptedAnswer":111},"What is the main purpose of the Fraud Advisory?","Question",{"text":112,"@type":113},"To advise FSA that the potentially fraudulent activity involving dependent students with unusual parent data identified in March 2025 has not been mitigated.","Answer",{"name":115,"@type":110,"acceptedAnswer":116},"What did the analysis find about the scale and nature of the activity?",{"text":117,"@type":113},"It found 12,026 dependent student identities submitted FAFSAs associated with 1,991 parent identities where it is unlikely the student and parent are related or associated.",{"name":119,"@type":110,"acceptedAnswer":120},"What is the estimated financial impact mentioned in the advisory?",{"text":121,"@type":113},"The advisory states a high likelihood of fraud and a potential loss of almost $3.5 million in federal student aid linked to these submissions during award year 2024–2025.","https://schema.org",{"og:url":83,"og:type":124,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":126,"canonical":83},"index,follow",{"doc_id":128,"site_id":62},587355,1792494694,{"code":4,"msg":5,"data":131},{"doc_id":128,"user_id":132,"nickname":92,"user_avatar":133,"doc_module":4,"category_id":39,"category_name":40,"doc_title":65,"doc_description":67,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":14,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":139,"language":140,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":141,"faqs":142,"seo_title":143,"seo_description":67,"update_tm":144,"read_time":145},2336475104736,"https://ap-avatar.wpscdn.com/avatar/22000c4c5e0e5b17e70?x-image-process=image/resize,m_fixed,w_180,h_180&k=1786591360781797222","FRAUD ADVISORY  \nPotential Fraud Involving FAFSA from Dependent Students with Unusual Parent Data  \nFEBRUARY 2026  \nU. S. Department of Education, Office of Inspector General  \nOffice of Inspector General  \nFebruary 2026  \nThis report is in the public domain. Authorization to reproduce it in whole or in part is granted. While permission to reprint this publication is not necessary, the citation should be: Fraud Advisory: Potential Fraud Involving FAFSA from Dependent Students with Unusual Parent Data.  \nPlease Note:  \nFraud Advisory: Potential Fraud Involving FAFSA from Dependent Students with Unusual Parent Data is available on the ED OIG website at [https://](https://)[ ](https://)[oig.ed.gov/reports/list](oig.ed.gov/reports/list).  \nAll images used under license from [Shutterstock.com](Shutterstock.com) and Adobe Stock.  \nIn March 2025, we identified and conveyed to the Department suspicious activity related to parent information used on multiple dependent student Free Application for Federal Student Aid (FAFSA) forms. At the time, FSA flagged these students for identity verification and we issued “Fraud Watch   \nIssue 1: Potentially Fraudulent Activity Involving Parent Information Included  on FAFSA.”  \nThe objective of this Fraud Advisory is to advise FSA that the suspicious and potentially fraudulent activity involving dependent students with unusual parent data identified in March 2025 has not been mitigated.  \nIn June 2025, we initiated analysis of additional data and ultimately found that this pattern of activity involving dependent students with unusual parent data on the FAFSA had continued. We determined that 12,026 dependent student identities submitted FAFSAs associated with 1,991 parent identities where it is unlikely that the student and parent are related or associated. As a result, these FAFSA submissions have a high likelihood of being fraudulent—a potential loss of almost $3.5 million in Federal student aid associated with these FAFSA submissions during award year 2024–2025.  \nKey Takeaway  \nWe suggest that FSA —  \n• Work with the IRS to implement additional controls to detect and prevent the misuse of stolen identities on FAFSA submissions, especially fraud schemes involving the use of potentially stolen student identities and nonrelated, potentially stolen parent identities.  \n• Conduct risk-based verification and validation procedures at the time FSA IDs are created. This can prevent the improper disbursement of Federal student aid based on fraudulent FAFSA submissions containing stolen identities.  \nFSA Response  \nFSA provided a response to our draft report on January 15, 2026, stating that it had already taken actions to include the suspect students we identified in its suspect identity file and to integrate them into its fraud monitoring processes. It also stated that it has started assessing additional account-level actions for longer-term control improvements.  \nAdditionally, FSA stated that it is actively advancing its ongoing and planned mitigation efforts to reduce risk in fraud scenarios and plans to (1) enhance risk-based verification at the time of FSAID creation,(2) increase the capacity of the fraud team within FSA and expand the models used for fraudulent activity, and (3) deploy real-time fraud monitoring on the 2026 FAFSA to improve its ability to detect and respond to suspicious activities earlier in the application process.  \nWe included FSA’s full comments at the end of the report (see Appendix C) .  \nFraud Advisory: Potential Fraud Involving FAFSA from Dependent Students with Unusual Parent Data  \n| 1  \nThe objective of this Fraud Advisory is to advise FSA that the suspicious and potentially fraudulent activity involving dependent students with unusual parent data identified in March 2025 has not been mitigated.  \nBACKGROUND  \nThe U. S. Department of Education (Department) manages and oversees an outstanding loan portfolio valued at more than $1.6 trillion, making it one of the larges","cbCaivR6sCxnMwro","https://ap.wps.com/l/cbCaivR6sCxnMwro","pdf",1719085,11,"English","# Fraud Advisory Purpose\n# Background and FAFSA Process Overview\n# Major Changes to the FAFSA Process\n# Recent FAFSA Legislation Impacting Parent and Student Data\n# Findings on Continued Fraud Pattern\n# Key Takeaway Recommendations\n# FSA Response","[{\"question\":\"What is the main purpose of the Fraud Advisory?\",\"answer\":\"To advise FSA that the potentially fraudulent activity involving dependent students with unusual parent data identified in March 2025 has not been mitigated.\"},{\"question\":\"What did the analysis find about the scale and nature of the activity?\",\"answer\":\"It found 12,026 dependent student identities submitted FAFSAs associated with 1,991 parent identities where it is unlikely the student and parent are related or associated.\"},{\"question\":\"What is the estimated financial impact mentioned in the advisory?\",\"answer\":\"The advisory states a high likelihood of fraud and a potential loss of almost $3.5 million in federal student aid linked to these submissions during award year 2024–2025.\"}]","Fraud Advisory: Potential Fraud Involving FAFSA from Dependent Students with Unusual Parent Data | PDF",1792061615,28]