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According to the most recent report of Accredibase, the UK-based background screening company Verifile Limited, there was a staggering 48% increase in the number of known degree or diploma mills operating worldwide last year. It identified more than 2,500 bogus institutions across all regions, but primarily in North America and Europe.

Four-week masters and doctorate degrees – and even undergraduate courses – are being offered over the Internet with no official recognition. Hence, the problem arises later when students seek admission to other universities, pass the entrance exam, but cannot enrol as their qualification is not recognised. In Latin America the demand for higher education is so great that people let themselves get sucked in.

A master's in education and a PhD in culture and education in Latin America that do not meet the legal requirements were advertised by a university foundation in Bogotá. Furthermore, the programmes, delivered under an agreement with a Chilean university, were not registered with Colombia's education ministry.

The Department of Education has launched a website which features a list of 6,900 academic institutions accredited by an accrediting agency or state approval agency. The website is designed to help employers distinguish between accredited institutions of higher education and unaccredited institutions commonly as "diploma mills" that offer bogus degrees.

La Salle University, a religious degree-granting correspondence university, was shut down by the FBI for issuing falsely accredited degree in 1996. Due to the fraud, the students were notified personally or through advertisements that they could receive restitution from the over $ 10 million seized from La Salle. However, due to a bad computer system it is still possible that some students were left out.

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.