More than 30 fake universities have been shut down by the Government following a crackdown on worthless degrees, after a website in China was found selling degree certificates from dozens of UK universities for £500 each. However, the UK is powerless to act against roughly 80 per cent of offenders because they are based outside the country and cannot be prosecuted, according to Prospects, the graduate careers expert. As the project starts its second year, it will focus on dealing with offenders at a local level through international collaboration with the equivalent authorities overseas, HEDD said.

Diploma mills have been on the United States radar screen as far back as 1876. Today, credential fraud in higher education is a billion-dollar industry, by some accounts. It has spiralled into a major threat for employers and university admissions offices. And it spans the globe. The United States is home to the largest number of diploma mills, with more than 1,000 known operations in 2011, according to Verifile, a UK-based pre-employment screening company.

Bearing names similar to top universities, China's fake colleges woo and swindle high school graduates through slick recruitment websites. A list released by sdaxue.com, a site that helps students choose higher educational institutions, has exposed 60 Chinese "universities" or "colleges" as unaccredited diploma mills.

Phony diploma mills that use “slick websites” and claim to be “nationally accredited” to lure honest students looking to improve themselves through education only offer certificates costing hundreds of dollars that “are not worth the paper they are printed on”, according to a report from ABC Action News WFTS in Florida.