What started as a cash-for-class effort in Detroit high schools has now drawn the scrutiny of district investigators, who are probing possible theft and fraud tied to the “Perfect Attendance Pays” program. At the center of the investigation are digital Visa gift cards that were supposed to reward teens for showing up every day. District leaders say they are combing through payment records and attendance logs to figure out whether cards were misdirected, misused, or both.
How the program was supposed to work
The winter incentive gives high-school students a $100 Visa gift card for each five-day stretch of perfect attendance, up to $1,000 over ten cycles, and sends the rewards as digital links to students’ district email accounts, according to Detroit Public Schools Community District. The district’s FAQ outlines who is eligible, how attendance is verified through PowerSchool, and what steps families should take if they believe an attendance record is wrong.
Big money, modest gains
Last year the district ran a similar attendance program, that time using 10-day cycles with $200 Visa cards. More than 7,300 students received at least one card, and the district spent about $4 million on incentives, Chalkbeat reported. District officials have pointed to modest improvements in high-school attendance afterward, but the sheer size of the payouts has prompted ongoing questions about oversight and internal controls.
District confirms fraud investigation
Today, CBS News Detroit reported that district leaders are formally investigating possible cases of theft and fraud tied to the gift cards. According to the segment, investigators are reviewing records from the card issuer alongside the district’s own distribution logs. Officials have not publicly named suspects or put a dollar figure on any suspected losses.
Watchdog had already flagged problems
The district’s Office of Inspector General was raising red flags well before this latest review. In its 2024–25 work, the OIG documented irregularities in attendance reporting, including an investigation that found students had been falsely marked present and that improper attendance-incentive payments in one case totaled about $1,800, Michigan News Source reported. The office said it completed dozens of investigations that year and has uncovered millions of dollars in losses to the district since 2009.
How the alleged fraud appears to have played out
District leaders told the school board that problems surfaced in later incentive cycles, particularly around transferred online gift cards, BridgeDetroit reported. Students who said their cards were missing or had already been used sometimes received replacements, which only added to the risk of misuse. In public discussions, board members floated switching to physical cards handed out in person or adding stronger digital dashboards that would limit transfers and give principals clearer, real-time visibility into who actually qualifies for the payouts.
What families are being told to do next
For families who think an earned gift card never arrived, or suspect a card was hijacked somewhere along the way, the district’s FAQ advises starting close to home. Parents and students are told to first contact the student’s teacher, counselor, or attendance agent, then escalate concerns to school administrators if the issue is not resolved. As of Tuesday, district officials had not announced any arrests or formal criminal charges. They say the district will pursue appropriate administrative or legal action if investigators confirm wrongdoing…