CovID Fraud jamie

The COVID-19 pandemic has had a devastating effect on businesses all over the world, leading to unprecedented levels of government support for struggling companies. However, amidst this financial aid, there have been reports of fraudulent activity by some businesses who have exploited government schemes for their own gain. The COVID-19 pandemic has provided ample opportunity for scammers to take advantage of vulnerable companies, and the government has been fighting a constant battle to detect and prevent such fraud.

The most high-profile case of COVID-19 related fraud is the scandal surrounding the US government’s pay check Protection Program (PPP). The PPP was designed to provide small businesses with loans to help them weather the pandemic. However, it has emerged that some large, publicly traded companies received millions of dollars in PPP loans, despite not meeting the eligibility criteria. The scale of the fraud was staggering, with over $500 billion in loans distributed through the program. One of the most egregious examples of PPP fraud was the case of Shake Shack, a popular fast-food chain. Shake Shack received a $10 million PPP loan, despite having over 8,000 employees and a market capitalisation of almost $2 billion. The company eventually returned the loan following public outcry, but the incident highlighted the flaws in the program’s eligibility criteria.

In the UK, the government’s Coronavirus Job Retention Scheme (CJRS), also known as the furlough scheme, has been targeted by fraudsters. The CJRS was introduced to help businesses pay their employees’ wages during the pandemic, and has paid out over £67 billion since its inception. However, reports suggest that some employers have been abusing the scheme by claiming furlough payments for employees who are still working, or claiming for non-existent employees.

In one case, a company in the UK claimed furlough payments for a non-existent employee, who was supposedly on sick leave. The company received over £5,000 in fraudulent payments before being caught by HM Revenue & Customs.

In another case, a company claimed furlough payments for an employee who had left the company months before the pandemic began.

The UK government has launched a crackdown on CJRS fraud, with hundreds of investigations underway and several arrests already made. However, the sheer scale of the scheme means that detecting fraud is a difficult task, and it is likely that many cases will go undetected.

Fraudulent activity is not limited to government support schemes. There have been reports of businesses using the pandemic as an excuse to hike prices, or to sell fake COVID-19 cures and treatments. In the UK, a company was fined £350,000 for selling a fake COVID-19 protection kit, which included ineffective face masks and hand sanitizer. The company claimed that the products were approved by the World Health Organization (WHO), which was found to be false. The pandemic has provided a fertile ground for scammers to exploit the vulnerability of businesses and individuals. As the world begins to emerge from the pandemic, it is likely that the fallout from COVID-19 related fraud will continue to be felt for years to come. Governments must remain vigilant and take action against those who seek to exploit the crisis for their own gain. Businesses must also be vigilant and take steps to protect themselves from fraudulent activity. These may be conducting background checks on suppliers and employees, or implementing robust anti-fraud policies and procedures. In conclusion, while the government’s support schemes have been a lifeline for many struggling businesses, the COVID-19 pandemic has also provided an opportunity for fraudsters to take advantage of vulnerable companies. Governments must take a tough stance against fraudulent activity, while businesses must remain vigilant and take steps to protect themselves from scammers. By working together, we can prevent COVID-19 related fraud and ensure that support reaches those who need it most.