US Lost more than $200 Billion in Pandemic Relief Fraud

A report by a watchdog revealed that the United States lost more than $200 billion due to fraud involving two programmes to support small businesses during the COVID-19 pandemic.

The US Small Business Administration's Office (SBA) conducted a review; according to a report issued Tuesday; for a comprehensive estimate of potential fraud in loan assistance programs earmarked during the pandemic.

The office stated that it had identified several methods used by fraudsters to steal American taxpayers' money, and to exploit programs aimed at helping those in need.

It is likely that more than $200 billion of the funds of the two programs have been defrauded, constituting at least 17% of all loan funds disbursed to the occupiers, revealing that nearly $1.2 trillion in loans have been spent for the Payroll Protection Program and the Covid-19 cases.

The investigations resulted in the seizure of nearly $30 billion in Disaster Loan and Payroll Protection funds, 1,011 indictments, and 529 convictions related to COVID-19 funds.

The US government has provided about $4.6 trillion in funding to respond to and recover from the pandemic; according to recent estimates by the Government Accountability Office, as of January, there is about $90.5 billion in funding unspent