But the numbers mentioned there seem tiny for a federal programme like the Pell Grant. A lot of times it's a matter of scale: a bit of fraud isn't ideal, but entirely manageable, so whatever.
Since then the scale expanded greatly. This is often a problem when you move things online: you're instantly connected with everyone on the world, which also means you're instantly connected with every asshole in the world. And with AI a single asshole can now pretend to be 200 assholes.
The solution is to do less things online and more in person. There are some advantages for some people in doing things online, but it also negatively affects everyone, and in general it just doesn't seem worth it to do everything online. It's not binary: you can do many things online while still requiring some bits in-person (e.g. registration, exams, occasional events).