Your use of 9-11 and the thousands of lives that were lost as a comparison is far-reaching and, in my opinion, insensitive. The unscrupulous schools you are referring to dig their own graves. Word gets around and it's tough to perpetuate when that word is negative.
By the same token, I don't believe everything I hear. I've had prospective students come into to my office and badmouth competitor schools. In many cases, it's nothing more than sour grapes because that student couldn't cut it at that school because of attendance issues or whatever.