1. Fraud in Financial aid
Tuesday
November 8, 2016

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

3. 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

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

5. Common types of fraud

6. 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”

7. 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

8. Umuc’s story

9. 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.

10. 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

11. UMUC’s story

12. 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.

13. 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.

14. WARNING SIGNS
Red flags or things to look for

15. 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.

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

17. Tips for combating Fraud

18. 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

19. Tips for combating Fraud
Report cases of fraud to the Inspector General at the US Department of Education by calling 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

20. 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

21. What do you think?

22. Questions?

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

24. THANK YOU!