They threaten the reputation of Americas colleges and universities by blatantly using similar names. Diploma mills cheat taxpayers when local school districts and even the Federal government hire one individual with a fraudulent degree. Phony medical degrees from diploma mills can have and have caused serious harm and even death. These fraudulent degrees can be used to obtain visas making the fact that they exist a national security issue. The failure to shut down diploma mills has been noted in other countries. harming our reputation around the world. The increasing number of diploma mills has created. as you can see. serious problems.