New Service Enables Early Detection of Potential Fraud That Today Costs Institutions and Displaces Legitimate Students

HERNDON, Va., April 21, 2026 /PRNewswire/ — The National Student Clearinghouse today announced the introduction of Sentinel 360, a platform that will empower higher education institutions to identify early signals of potential “ghost student” fraud.

Ghost student fraud, a predatory scam where bad actors use false identities to collect student aid dollars, is a growing problem for colleges and universities amid the shift to online enrollment and the increasing sophistication of AI-powered fraud. However, ghost students steal more than financial aid: they steal time, resources, institutional integrity, and opportunities for legitimate students.

Sentinel 360 works by identifying patterns in institutions’ data that may merit a closer look. Nearly 3,600 higher education institutions report 97% of all postsecondary enrollment data to the National Student Clearinghouse. As a result, the Clearinghouse is uniquely positioned to see the total picture of ghost student fraud across institutions and signal questionable behavioral data for institutions to review. By proactively identifying these patterns, Sentinel 360 enables early detection of potential fraud, often before funds are disbursed.

“Institutions have told us about the growing impact of ghost student fraud, from strained resources to lost opportunities for legitimate students trying to build their futures,” said Melba Amissi, Chief Customer and Operations Officer at the National Student Clearinghouse. “We knew we had both a responsibility and the ability to act. With the depth and integrity of the enrollment data we steward on behalf of the higher education community, the Clearinghouse is uniquely positioned to help address this challenge. Sentinel 360 is the result, and a clear extension of our mission to serve institutions, learners, and the workforce communities that rely on them.”

Fraud rings currently operate across multiple campuses, taking advantage of concurrent enrollment programs and data only visible at a national scale, such as shared addresses. California community colleges alone reported 1.2 million fraudulent FAFSA applications in 2024, according to the California Community Colleges Chancellor’s Office.¹

Institutions are federally mandated to report suspected fraud to the Department of Education’s Office of Inspector General whenever federal funds are misappropriated. Sentinel 360 facilitates this critical compliance through integrated workflows that surface issues for schools to review and address before NSLDS, audits, or corrective reporting are required, specifically cases where individuals were reported as enrolled but never actually attended.

“No other solution offers the comprehensive, national perspective that the Clearinghouse provides,” said Sean McTighe, Vice President of Compliance, Data Reporting and Strategy. “By identifying broad behavioral trends and patterns, we augment an institution’s existing identity verification system to signal potential fraud. This data is then fed back into a national database, allowing institutions to partner together and finally gain control over this escalating financial fraud crisis.”

To participate in Sentinel 360, institutions must submit advanced registration and use the Clearinghouse’s Enrollment Reporting and DegreeVerify services. For more information, visit sentinel360.studentclearinghouse.org.

¹Source: Los Angeles Times, June 24, 2025.
https://www.latimes.com/california/story/2025-06-24/community-colleges-financial-aid-fraud

About the National Student Clearinghouse^®

The National Student Clearinghouse, a 501(c)(3) nonprofit organization formed in 1993, is the trusted source for and the leading provider of higher education verifications and electronic education record exchanges. Besides working with nearly 3,600 postsecondary institutions in meeting their compliance needs, the Clearinghouse also provides thousands of high schools and districts with continuing collegiate enrollment, progression, and completion statistics on their alumni. For more details, visit studentclearinghouse.org.

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SOURCE National Student Clearinghouse