Billions Lost: COVID-19 Relief Funds Stolen in Massive Fraud

Fraudsters have reportedly misappropriated over $200 billion in COVID-19 relief funds intended to support struggling small businesses during the pandemic, according to a report by the inspector general of the Small Business Administration (SBA). The report reveals that approximately 17% of the $1.2 trillion disbursed by the SBA through the COVID-19 Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) were potentially fraudulent claims. Loose controls and the rush to distribute funds contributed to the ease with which fraudsters gained access to these programs. The Justice Department has initiated over 140 cases of fraud, with estimates suggesting that the total value of fraudulently obtained PPP loans could be in the billions. Efforts are underway to recover the stolen funds, with ongoing investigations and congressional hearings.