Dive Brief:
- Pakistani software company Axact is accused of running hundreds of online high schools and universities duping mostly U.S. and Arabian students into paying for fake degrees.
- A New York Times investigation traced the schools back to Axact and talked to former employees and scammed students about the company’s tactics, but Axact officials deny the allegations.
- Fraud experts estimate the company made millions of dollars per month, covering its tracks with elaborate school websites, accreditation claims, and state department letters, according to the article.
Dive Insight:
The New York Times investigation revealed a company whose customers sometimes knew they were paying for a fake diploma, choosing that path as an easy way to a job or a promotion, but many students did not. Several lawsuits have claimed damages from Axact-operated schools but stopped short of incriminating the parent company, which is reportedly run by a Pakistani philanthropist and aspiring media mogul, Shoaib Ahmed Shaikh. No doubt this reporting will prompt additional lawsuits as more students and lawyers realize the scope of the operation.