Although the COVID-19 pandemic public health emergency ended earlier in 2023, the consequences of relaxed screening and approval standards for relief funds are still reverberating throughout every sector as fraud in this area is still rampant
In the healthcare industry, a perennial target for fraudsters, saw enforcement actions for old standards as well as new schemes that sought to take advantage of pandemic-related fraud opportunities. Other pandemic-relief programs are still seeing the impact of fraud schemes that stole millions in taxpayer funds.
From the beginning of the pandemic public health emergency in March 2020 through June 2023, approximately 1,399 individuals or businesses were “found guilty or liable” in pandemic-related fraud cases, according to the U.S. Government Accountability Office (GAO). And more fraud schemes are uncovered every day.
Pandemic-related relief program fraud often involves two common methods: i) beneficiary fraud, which involves “willful misrepresentation in order to improperly obtain a benefit for a beneficiary or at their expense”; and ii) identity fraud, which “uses the theft of personal information to obtain benefits.” Of course, many schemes combine both methods to perpetrate the fraud.
Below are a few examples of pandemic-related fraud enforcement actions from the third quarter.
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