Fraud in Financial aid Tuesday November 8, 2016

presenters Alexis Moynahan Eliza Tymes Assistant Director, Financial Aid Systems University of Maryland University College (UMUC) Alexis.Moynahan@umuc.edu Acting Asst Vice President, Office of Compliance and Fraud Prevention University of Maryland University College (UMUC) Eliza.tymes@umuc.edu

University of Maryland University College UMUC is an online public university headquartered in Largo, Maryland. Since 1947, UMUC’s focus has been working adults and military students. UMUC educates more than 80,000 students. With divisions in Asia and Europe and a presence on military installations in more than 20 countries and territories, UMUC is also a leading provider of education services to the U.S military. University of Maryland University College

AGENDA COMMON TYPES OF FRAUD UMUC’S STORY WARNING SIGNS TIPS FOR COMBATING FRAUD

Common types of fraud

Common Types of Fraud Underreporting of income and assets Overstating the number of family members in college Provide a falsified copy of documents Fabricate prior education Squandering financial aid on luxury items “Pell runners” / “Pell chasers”

Common Types of Fraud Fraud Rings Ring leaders get access to peoples personal information – data breach OR Target elderly, poverty stricken or unknowing individuals Use the same computer to apply for admissions, financial aid, or register for classes Average ring involves 19 individuals

Umuc’s story

UMUC’s story In the fall of 2011, the Financial Aid Office made a shocking and accidental discovery of two fraud rings…… A staff member realized tax returns for multiple students were being submitted from the same fax number.

UMUC’s story FA Flagged suspicious students Selected suspicious students for institutional verification OIG Immediately reported individuals; paper trail Assisted with identification, prosecution and dismantling of fraud rings nationwide. UMUC Multiple department commitment 2013 created a dedicated team; Office of Compliance and Fraud Prevention

UMUC’s story

Illustration of SOI activity as indicated by mapping the IP address tied to the admissions application. The data is based on number of applications generated 06/01/2013 thru 06/13/2014.

Illustration of SOI activity as indicated by mapping the address listed on the admissions application. The data is based on number of applications generated between 06/01/2013 thru 06/13/2014.

WARNING SIGNS Red flags or things to look for

Look for the following warning signs Round numbers reported for income - . No business or farm income reported when occupation suggests they are self-employed. Interest and dividend income both $0, or very low, compared with the family's wages. Documents look like photocopies of photocopies. Documents with different fonts / whiteout.

Look for the following warning signs Straw students – Same information for multiple students IP Address Demographic information – address, telephone number, email address Reported Identity Theft Incoming Contact

Tips for combating Fraud

Tips for combating Fraud Ask for proof of legal separation or divorce decree Require proof of registration and/or copy of paid tuition for parents who claim to be in college Establish policies requiring expulsion of students who participate in fraudulent activities Track suspected cases of fraud from year to year

Tips for combating Fraud Report cases of fraud to the Inspector General at the US Department of Education by calling 1-800-MIS-USED Remember that some cases of apparent fraud may be genuine errors Create a cross-department team that encourages offices to communicate with one another about suspicious activities

Tips For combating Fraud What We’ve Implemented at UMUC: Investigative Reporting on Incoming Applications Monthly Audits on Cumulative Data Quarterly Multi-Unit Meetings regarding new trends and findings Monthly Reporting to Executive Staff for up to date data regarding fraud Encourage engagement and referrals from student facing groups

What do you think?

Questions?

presenters Alexis Moynahan Eliza Tymes Assistant Director, Financial Aid Systems University of Maryland University College (UMUC) Alexis.Moynahan@umuc.edu Acting Asst. Vice President, Office of Compliance and Fraud Prevention University of Maryland University College (UMUC) Eliza.tymes@umuc.edu

THANK YOU!