23 09 Fraud Landscape One Pager
Summary
A three-page fraud landscape overview dated June 2023 from the SBA Office of Inspector General, drawn from its White Paper on COVID-19 Pandemic EIDL and PPP Loan Fraud Landscape. It states that OIG estimates SBA disbursed over $200 billion in potentially fraudulent COVID-19 EIDLs, EIDL Targeted Advances, Supplemental Targeted Advances and PPP loans, at least 17 percent of all COVID-19 EIDL and PPP funds. A chart shows 4.5 million potentially fraudulent loans and grants out of 22.1 million, and $1.2 trillion disbursed. The second page reports $9 billion in dollar accomplishments in fiscal years 2021 and 2022 against an OIG budget of $33 million, and over $8 billion in EIDL funds returned by financial institutions and $20 billion by borrowers. The third page lists eleven fraud indicators, including hold codes, bank accounts and suspicious email addresses.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Full text
FRAUD LANDSCAPE | JUNE 2023
? Why SBA OIG Did This Study Pandemic-Related SBA OIG Accomplishments
(from March 2020 to May 2023)
OIG conducted this review to provide
a comprehensive es mate of the
Indictments Arrests Convic ons
poten al fraud in the U.S. Small
Business Administra on’s (SBA)
pandemic assistance loan programs.
What SBA OIG Found 1,011 803 529
OIG es mates that SBA disbursed over
$200 billion in poten ally fraudulent Ac onable Leads Hotline Complaints
COVID-19 EIDLs, EIDL Targeted
Advances, Supplemental Targeted
Advances, and PPP loans. This means
at least 17 percent of all COVID-19
EIDL and PPP funds were disbursed to 90,000+ 250,000+
poten ally fraudulent actors.
Plans for the Future
OIG con nues to work on obtaining addi onal datasets through partnerships with other government
agencies as well as through subpoenas of certain lenders and their third-party processors. As we
receive and analyze addi onal datasets, the fraud groups may be refined to iden fy addi onal
fraudulent loans. The poten al fraud es mates directly correlate to our inves ga ve casework,
adjudicated and ongoing criminal cases, and to schemes SBA OIG and other oversight agencies are
con nuing to unravel and then prosecute.
PotenƟal fraud in SBA’s pandemic loan programs
21%
4.5 million poten ally fraudulent
loans and grants
22.1 million
loans and
grants Over poten ally
disbursed 200 billion fraudulent amount
17%
$1.2 trillion
dollars
disbursed
From the White Paper on COVID-19 Pandemic EIDL and PPP Loan Fraud Landscape | Source: OIG analysis of COVID-19 EIDL and PPP data
Small Business Administra on Office of Inspector General Page 1 of 3
FRAUD LANDSCAPE | JUNE 2023
30
570 77
Pandemic Related
Reports
Ongoing Pandemic Related
Inves ga ons Recommenda ons
80+
11 Congressional
Briefings
29K+
Congressional Email Subscribers
Hearings From Public
ROI $9 billion
OIG Budget $33 million
During fiscal year 2021 and 2022, OIG provided an exponenƟal return on
investment (ROI) to the taxpayer with $9 billion in dollar accomplishments, which
includes inves ga ve recoveries, fines, and forfeitures, as well as review findings of
disallowed costs. Also, over $8 billion in EIDL funds have been returned to SBA by
financial ins tu ons and another $20 billion by borrowers. OIG has played a key role
in the return of these funds through working with our law enforcement partners and
financial ins tu ons.
Small Business Administra on Office of Inspector General Page 2 of 3
FRAUD LANDSCAPE | JUNE 2023
Fraud Indicators
1 Hold Codes 7 Sole Proprietors/Independent
• COVID-19 EIDL and PPP borrowers whose Contractors Without Employer
loans were flagged by SBA or third-party IdenƟficaƟon Numbers (EIN)
lenders because they iden fied one or • COVID-19 EIDL “advance” sole proprietor
more poten al indicators of fraud or independent contractor borrowers
Internet Protocol (IP) Addresses who claimed to employ more than one
2 person but did not apply using Employer
• COVID-19 EIDL and PPP borrowers that
Iden fica on Numbers (EIN), which are
appear to have submi ed loan applica ons
required of businesses with more than
from (1) a foreign country or (2) the same IP
one employee
address as other applica ons found to have
a higher likelihood of fraud
8 Suspicious Phone Numbers
• COVID-19 EIDL borrowers whose phone
3 Employer IdenƟficaƟon Numbers (EIN)
numbers match other applica ons found
• COVID-19 EIDL borrowers whose EIN: (1) to have a higher likelihood of fraud
matched another EIDL or PPP borrowers
whose EIN matched another PPP loan or
9 Suspicious Physical Addresses
(2) was improperly formatted or began with
a prefix that was not considered valid by the • COVID-19 EIDL borrowers whose
addresses match other applications found
IRS in its loan application ? to have a higher likelihood of fraud
• COVID-19 EIDL and PPP borrowers who
appear to have established their business
after the cutoff date to qualify for assistance 10 COVID-19 EIDL Advances
• COVID-19 EIDL applicants who received
4 Bank Accounts advances that were identified by SBA as
• COVID-19 EIDL borrowers who (1) received potentially fraudulent
mul ple COVID-19 EIDLs using the same
bank account and rou ng number or Suspicious Email Addresses
(2) changed their deposit account from the 11
• COVID-19 EIDL and PPP borrowers whose
one included on their applica on to a
email addresses came from potentially
different bank account or debit card
temporary domains that can disappear in
• COVID-19 EIDL and PPP borrowers whose
the future or contain modifications such
bank accounts matched other applica ons
as dots, dashes, or plus signs that make
found to have a higher likelihood of fraud
them appear unique, but are essentially
5 Defaulted/No Loan Forgiveness masked duplicates, as they do not alter
where the email is sent from if appropriate
• PPP borrowers who have not made any
• COVID-19 EIDL borrowers whose email
payments, are in default, and have not
addresses match other applications found
applied for forgiveness
to have a higher likelihood of fraud
6 Hotline Complaints
• Borrowers whose COVID-19 EIDL or PPP
loan was the subject of a complaint Es mated Poten al Fraud
submitted to the OIG Hotline reporting Over $200 billion
various forms of fraud, waste, or abuse
From the White Paper on COVID-19 Pandemic EIDL and PPP Loan Fraud Landscape |
Source: OIG methodology and analysis of COVID-19 EIDL and PPP borrower loan data
Small Business Administra on Office of Inspector General Page 3 of 3
File and source
- File
- 23-09-fraud-landscape-one-pager.pdf
- Size
- 1,809,856 bytes
- SHA-256
- cddfac63ce250ff4c5d3afc4256414b5a50f28f1deb8e2e8967608e9df5f5d82
- Original
- www.sba.gov