Websites run by bogus colleges often show happy "graduates"

BBC News Online asked how the alleged fraud operates and what impact it could have on genuine students and colleges.

The arrests on Wednesday in London and Essex came within weeks of a promise by Home Secretary David Blunkett to crack down on bogus institutions.

But it has prompted fears bad publicity may taint the reputation of legitimate colleges and damage the UK's lucrative overseas education market.

At the moment we are in a bit of a limbo because there is not a clear cut way of identifying which institutions are 'bona fide' Duncan Lane, UKCOSA Raids hope to smash scam

Under the alleged fraud, foreigners pose as students in order to enter Britain, where they may then extend their stay or disappear.

Typically they are charged a fee by bogus colleges to provide false paperwork backing up their application for a visa to travel to and study in the UK.

This could range from a letter guaranteeing a place on a full-time "course", which results in a genuine visa being granted, to a false passport stamp.

An organisation giving advice to overseas students welcomed any crackdown on bogus colleges - but warned bad publicity could have a knock-on effect on legitimate colleges.

Duncan Lane, director of advice and training for UKCOSA, the Council for International Education, said any "backlash" was a real concern for the private sector.

Websites 'convincing'

While some colleges were voluntarily accredited to organisations like the British Council, other legitimate ones were not.

Mr Lane said part of the problem was that the websites advertising bogus colleges were "usually quite convincing", making them difficult for students to identify.

"At the moment we are in a bit of a limbo because there is not a clear cut way of identifying which institutions are 'bona fide', to use the Home Office term," he said.

The majority of foreign students are genuine and bring substantial economic benefits to the UK Home Secretary David Blunkett

"There's a danger that if there's a backlash against the private sector as a whole, a lot of really good institutions where overseas students can get their education needs met very, very well are going to go to pot.

"Just like the public sector, they need the overseas students to keep them afloat."

The British Council has backed a move by Mr Blunkett requiring all private schools and colleges to be accredited to the Home Office by the end of the year.

Student visas will not be issued to colleges not on the list, which should protect genuine students and institutions.

Cherry Gough, deputy director of English language teaching for the British Council, said the UK could not afford to jeopardise its "unique reputation" for teaching by allowing bogus colleges to dupe applicants from overseas.

FOREIGN STUDENT FACTS At least 600,000 students come to the UK each year to learn English Almost 400 English-language teaching institutions are accredited A further 500 have not registered with a central body Most colleges are based in London and the South East Source: British Council

Mr Blunkett, speaking earlier this year, acknowledged the value of foreign students at the same time as he announced the government's crackdown on visa scams.

"The majority of foreign students are genuine and bring substantial economic benefits to the UK," he said.

He highlighted a report from the British Council showing foreign students currently contribute �3bn a year to the UK economy - a figure expected to rise by a further �13bn by 2020.

"It is important that we protect this business and that these students continue to see further and higher education in our country as world class," he said.

"But we also have to ensure that this system is not abused."

You are likely to be exploited, it is likely to cost you money, it is unlikely to guarantee your lawful stay in the country Det Chief Supt Steven Kupis Operation Maxim

Wednesday's raids were carried out by the police, Immigration Service and UK Passport Agency under the banner of Operation Maxim, run by Scotland Yard's specialist crime directorate.

Det Chief Supt Steven Kupis told BBC News Online that measures obliging private colleges to register with the Home Office would help close loopholes in the student visa system.

While helping immigration officials combat fraud, it would also protect legitimate students, he said.

"We get people who want to enter this country illegally but we equally have people who want to come here for genuine reasons," Mr Kupis said.

He advised prospective overseas students considering knowingly paying for a bogus application to "be very wary".

He said: "You are likely to be exploited, it is likely to cost you money, it is unlikely to guarantee your lawful stay in the country and there are numerous police operations continuing to run which target organised immigration crime."