Student Loan Fraud Through Identity Theft

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Student Loan Fraud Through Identity Theft
Short Title Former Admissions Worker of a University Obtained Student Information to Apply for Loans
Location Tennessee, United States
Date October 2020

Taxonomy Insecurity, Appropriation
Information Identifying, Professional, Contact
Threat Actors Tennessee State University, A former admissions worker at TSU

Individuals
Affected Students of TSU
High Risk Groups Students
Secondary Consequences Financial Cost

A former admissions worker at Tennessee State University (TSU) committed student loan fraud, wire fraud and aggravated identity theft.

Description

In May 2019 a former admissions worker at Tennessee State University was arrested for managing an elaborate scheme to steal and divert $84,506 in student loans into a bank account set up using a false name and Social Security number.

He was fraudulently using students’ personal information to apply for financial aid and diverted the funds to accounts he controlled. Appropriation

While employed in the admissions office of TSU, he obtained the personal information of TSU students and others and applied for student loans in their names. That can be seen as Insecurity from the side of the University.

He was sentenced to 32 months in federal prison and ordered to pay $84,506.00 in restitution.

Breakdown

Threat: Admissions worker uses personal information of students to apply for loans delivered to his accounts
At-Risk group: students
Harm: Appropriation
Secondary Consequences: Financial Cost

Threat: University not protecting students data from abuse by ex workers
At-Risk group: students
Harm: Insecurity
Secondary Consequences: Financial Cost

Risk Statistics

Laws and Regulations

Sources

https://hotforsecurity.bitdefender.com/blog/ex-tennessee-university-employee-sentenced-to-over-30-months-for-student-loan-fraud-aggravated-identity-theft-23960.html