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Diploma-mill owners are an elusive bunch. They flood e-mail boxes with offers of cheap college degrees, and collect payment through Web sites, then filter that money into overseas bank accounts. When the police try to shut one of the businesses down, the owners just set up shop elsewhere, often in a poor country with weak fraud laws. Unable to snuff out these illegal businesses, many states have changed their strategy: if you can't catch the dealers, go after the consumers. A handful, like Illinois, Indiana, and New Jersey, have recently criminalized the use of fake degrees.

In the US, the government is not directly implemented in the procedure of accreditation. Private agencies are taking care of this. The Education Department is recognizing some agencies. However, they do not do much to stop the activities from less honest ones. Several education institutes are not accredited due to the high procedure costs.

A report released by the department says a project called the Distance Education Demonstration Program has shown that waiving financial-aid restrictions on distance-education providers did not lead to any problems. The rules were designed to prevent fraudulent correspondence programs from gaining access to federal student-aid money. But the report leaves out details about one instance in which an institution closed down after it took advantage of a rule waiver and was then found to be riddled with fraud.

Higher-education authorities in Britain, China, the Netherlands, Sweden, and the United States have sounded the alarm about the increase in incidents of attempted admissions fraud. Authorities say cases of fraud typically involve students from developing countries who are desperate to get degrees from universities in developed countries, including those in Western Europe and the United States. A handful of countries seem to have the most offenders, including China, Colombia, Iraq, Nigeria and several former Soviet republics, particularly Armenia.

Israel grants government workers 10 to 20% pay increases for every advanced degree they earn; and as a result, dozens of civil servants, including top education officials, have been put under investigation for obtaining fake degrees.