AI Risk, and Governance in Education: What Institutions Must Know

Digital platforms have become the backbone of modern education. From online admissions and student portals to remote testing and classroom management systems, identity now lives entirely online. But most institutions haven’t kept up with how identity fraud has evolved.

AI is making it easier than ever to impersonate students, staff, and systems. Deepfake videos, synthetic profiles, and AI-generated documents are being used to bypass traditional controls. Education institutions, especially those relying on outdated systems, are at serious risk.

Identity Fraud in Education Is Getting Smarter

Fake transcripts, forged diplomas, and false enrollment claims are not new problems. What’s changed is the speed, scale, and realism with which they can now be executed using artificial intelligence.

Examples include:

• Students using voice cloning tools to bypass exam monitoring

• Applicants submitting AI-generated application videos and essays

• Fake professors inserted into internal systems and course directories

• Deepfake messages impersonating school administrators to trigger phishing attacks

• Synthetic student identities used to access grants, accounts, and software

In 2023, EDUCAUSE listed identity and access management as one of the top five concerns for IT and cybersecurity teams in higher education (EDUCAUSE 2023 Horizon Report – Higher Education Edition).

A 2024 report from Microsoft and LinkedIn found that while 75% of education leaders expect AI to transform their institutions, fewer than 40% feel equipped to manage the risks (Microsoft and LinkedIn Work Trend Index, 2024).

What’s at Risk When Identity Fails

The consequences of identity fraud in education are not limited to cheating. Here’s what can happen when identity systems break down:

Student Data and Privacy

If unauthorized users gain access to student records, institutions may violate laws like FERPA or PIPEDA. This can result in fines and legal action, as well as a loss of public trust.

Academic Integrity

If a school can’t verify who is attending, submitting work, or taking exams, the credibility of its programs and credentials is called into question.

Institutional Reputation

Incidents involving AI-generated fraud can lead to public fallout. Trust from donors, families, and applicants is hard to rebuild once lost.

Financial Exposure

Synthetic identities can be used to access scholarships, payroll systems, and restricted research platforms. The University of Toronto reported increased fraud attempts during its remote learning transition in 2021–2023 (University of Toronto IT Risk Report, 2023).

Identity Governance: What Schools Should Be Doing

Identity governance is not just about who gets access. It’s about how that access is granted, verified, tracked, and revoked — and who is accountable when something goes wrong.

Here are five steps schools should take now:

1. Strengthen Identity Verification

Most institutions rely on login credentials like email and password. These are no longer enough.

Instead, implement:

• Biometric verification for high-risk actions such as exam entry or admin changes

• Device fingerprinting

• Behavior-based identity signals (e.g., typing speed, login patterns)

Some proctoring tools already use these methods, but more institutions need to integrate verification across their entire user journey, not just during exams.

2. Use Verifiable Credentials

Verifiable credentials allow students, staff, and alumni to manage their own digital identity. These credentials are cryptographically signed and tamper-resistant.

Examples:

• Digital diplomas

• Enrollment confirmations

• Faculty employment verification

MIT and the University of Bologna now issue digital diplomas using verifiable credentials through the Digital Credentials Consortium (Digital Credentials Consortium, 2023). The model follows the W3C Verifiable Credentials framework, which is supported by Microsoft, IBM, and Salesforce (W3C Verifiable Credentials, 2023).

3. Create AI Governance Policies

AI use in education must be governed, not just adopted. Institutions should inventory all use cases of AI and define clear policies around risk, bias, misuse, and accountability.

Start with:

• Internal policies for AI-generated submissions and grading

• Human review processes for flagged activity

• Documentation of AI vendors and tools used across the institution

Use frameworks like the NIST AI Risk Management Framework (NIST, 2023) and ISO/IEC 42001 (ISO, 2023) as a foundation.

4. Secure Remote and Hybrid Learning Systems

Most virtual learning environments authenticate users once at login. This is not enough.

Remote systems should:

• Monitor user presence throughout a session

• Link verified identity to user behavior and access logs

• Flag identity anomalies across live classes, exam sessions, and message boards

Privacy must also be protected. Institutions should involve educators, students, and legal advisors when developing identity tracking policies.

5. Train Everyone, Not Just IT

Most identity fraud incidents don’t start in IT departments. They often show up in admissions, classrooms, and support desks.

Train non-technical staff on:

• Common identity fraud tactics

• Signs of AI-generated content

• Steps to verify suspicious activity or escalate concerns

Annual training should be mandatory for all departments, especially those that manage student records, financial aid, or credentials.

Frequently Asked Questions

Can primary and secondary schools face the same risks?
Yes. K–12 institutions are increasingly adopting digital learning platforms and shared devices. This creates similar vulnerabilities to those found in colleges and universities.

Is this just about student cheating?
No. AI identity fraud affects every level of the institution — including fake applications, vendor access, and staff impersonation.

Are smaller schools at lower risk?
No. In fact, they are often more vulnerable due to fewer IT staff, limited budgets, and heavier reliance on third-party systems.

What Habilis.Identity Provides for Education

Habilis.Identity helps educational institutions:

• Detect and prevent synthetic identities and deepfakes

• Issue verifiable credentials to students, staff, and partners

• Monitor and manage access across the full user lifecycle

• Comply with global data and identity protection standards

We support schools, colleges, boards, and edtech platforms in modernizing their identity systems to protect both people and reputation.

To explore these challenges and solutions in more depth, download our new whitepaper:
"Protecting Digital Identity in Education: A Governance Roadmap for Canada, the U.S., and Europe."
It offers real-world examples, regional regulation breakdowns, and a clear roadmap for implementing identity governance across your institution.

Download the whitepaper to take the next step in securing your students, staff, and systems against evolving AI-powered threats.