New research conducted by broadcaster NOS and website Investico reveals that students from ethnic minority backgrounds are subjected to a significantly higher number of accusations related

to student loan or grant fraud compared to their peers. The severity of these claims has prompted education minister Robbert Dijkgraaf to call for an extensive investigation into the verification procedures conducted by student finance body Duo, which partly relies on algorithms, as reported by NOS.

In their investigation, NOS and Investico interviewed 32 lawyers who have represented students accused of falsifying their place of residence over the past decade. Students living away from home are eligible for a higher grant to help cover their living expenses.

Out of the 376 cases handled by these lawyers, 97% involved students from ethnic minority backgrounds. Law professor Gijs van Dijck described these figures as "shocking," according to Investico.

Duo has employed an algorithm since 2012 to identify potential fraud risks based on indicators such as age and education, trained using the expertise of Duo investigators. Once a suspect is identified, fraud investigators at Duo determine whether further investigation is warranted, taking additional factors into account.

For instance, young individuals living with family members, such as a sibling or aunt, are considered a potential risk, despite being legally entitled to a grant as a student living away from home, which is €200 more per month compared to students living at home.

Once a suspect is identified, Duo conducts home visits, engages with neighbors, and determines whether fraud has been committed. Subsequently, the student is contacted and required to repay the funds, potentially facing fines as well.

Mohammed, a college student at HBO who financially supported his studies by working as a taxi driver, expressed his frustration, telling Investico, "The word 'student' is not written on my forehead. People think a student is a blonde lad with blue eyes. I would come home late at night, in my taxi driver suit."

Over the past decade, around 10,000 students have been accused of fraud, with 6,000 filing appeals and 20% of them winning their cases. Additionally, nearly 1,500 court cases were recorded, resulting in a 25% success rate for the students.

Gülsüm Çekiç, a lawyer who has represented multiple students accused of fraud, raised concerns about some of the indicators used by Duo. She highlighted that students from ethnic minority backgrounds are more likely to live with a sibling or aunt, questioning the fairness of such criteria.

Lucas Haitsma, an expert in algorithms and discrimination, warned that the process is susceptible to prejudice. He explained to NOS, "If you look at a specific group, you are only going to find fraud. And if you base conclusions on that data, then it will only intensify your tunnel vision. The idea that these youngsters are more likely to commit fraud is then confirmed."

In response, Duo stated to NOS that their algorithm does not consider ethnicity or nationality as a basis. A spokesperson emphasized that they do not have access to information about a student's background nor do they select individuals based on such criteria.

The spokesperson further acknowledged that Duo has not conducted an official evaluation of its fraud strategy since 2012. They also stated that the recent childcare benefit scandal, which unjustly accused ethnic minority parents of fraud based on an algorithm, does not warrant a re-evaluation of their own methods. The process of compensating the affected parents in the benefit scandal is still ongoing. Photo by Vincent van Zeijst, Wikimedia commons.