The U.S. government has been the victim of billions of dollars in fraud related to COVID-19 relief funds. According to the U.S. Department of Justice, over $200 billion in COVID relief funds may have been stolen from two large federal programs: the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program.
The PPP was designed to help small businesses keep their employees on the payroll during the COVID-19 pandemic. The EIDL program was designed to provide loans to small businesses and other entities that were struggling financially due to the pandemic.
Fraudsters have taken advantage of these programs in a variety of ways. Some have created fake businesses to obtain PPP loans. Others have submitted fraudulent paperwork to obtain EIDL loans. Still others have used stolen identities to obtain loans.
The Justice Department has been working to crack down on COVID relief fraud. In recent months, the department has announced a number of major enforcement actions, including the arrest of over 3,000 people and the seizure of over $1.4 billion in stolen funds.
Despite these efforts, COVID relief fraud remains a serious problem. The Justice Department estimates that billions of dollars in COVID relief funds have still not been recovered.
The theft of COVID relief funds is a crime that has a real impact on people's lives. It deprives small businesses of the resources they need to survive, and it leaves taxpayers footing the bill for the fraud.
The Justice Department is committed to holding fraudsters accountable for their crimes. If you suspect that someone is committing COVID relief fraud, you can report it to the FBI at tips.fbi.gov.
Here are some tips to help you avoid becoming a victim of COVID relief fraud:
- Only apply for COVID relief funds if you are eligible.
- Be wary of anyone who asks for your personal information in exchange for COVID relief funds.
- Do not give out your Social Security number or bank account information to anyone you do not trust.
- Report any suspicious activity to the authorities.
By following these tips, you can help protect yourself from COVID relief fraud.