There has been a dramatic increase in the number of online job and internship websites, leading to a dramatic increase in the number of opportunities available to students and new graduates; At the same time, this has also created an increase in the number of fraudulently posted internships, con-artist recruiters, phishing links, and counterfeit job listings. Many students are scammed into becoming victims of identity theft, financial fraud, and misrepresentation of job opportunities because of the lack of an established verification process in place regarding the validity of the job postings. Most of the current job search portals are focused primarily on providing internship listings and they do not have any intelligent mechanism in place for identifying or preventing fraudulent activity. In order to address these issues, we are proposing the development of an "AI-Powered Internship Fraud Detection System". The system utilizes both Artificial Intelligence and Machine Learning technologies to perform an automated analysis on all internship listings in order to identify any fraudulent or dubious opportunities. The framework employs a wide variety of criteria that are evaluated in order to determine the legitimacy of an internship opportunity, including the authenticity of the company, the verification of the email/domain of the person posting the job, the inclusion of suspicious key words, the behavior of the recruiting entity, any abnormalities in the salary offered, and by way of user reporting.