A congressional report has found that obscure financial technology companies “with little to no oversight from lenders” have fueled rampant Paycheck Protection Program fraud. The report estimates a total fraud of about $64 billion, with fintechs contributing significantly to that total.
“At least tens of billions of dollars in PPP funds were likely disbursed to ineligible or fraudulent applicants, often with the involvement of fintechs, causing tremendous harm to taxpayers,” the congressional report states. One fintech called Kabbage had furloughed half of its employees who were tasked with assessing risk and reviewing accounts. Nonetheless, Kabbage continued funding PPP loans by outsourcing the work to “temporary contractors,” the report said.
Another fintech called Womply had fraud prevention practices described by lending partners as systems that were “put together with duct tape and gum.” The fintech was also accused of allowing “rampant fraud” to infiltrate the PPP.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Jim_Jordan Recovering fraudulently obtained PPP funds would be a good job for a couple hundred IRS agents (not 87k). So would investigating Medicare/Medicaid fraud. Govt needs to stop throwing taxpayer money away.
geez. Another fintech scandal .
Malaysia Malaysia Latest News, Malaysia Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
A congressional report says financial technology companies fueled rampant PPP fraudA sprawling congressional report accuses several little-known financial technology companies, or fintechs, of reaping 'billions in fees from taxpayers while becoming easy targets for those who sought to defraud the PPP,' or Paycheck Protection Program:
Source: WBUR - 🏆 274. / 63 Read more »
A congressional report says financial technology companies fueled rampant PPP fraudFraud in the Paycheck Protection Program, which gave potentially forgivable loans to small businesses during the pandemic, was largely due to financial technology companies, according to a new report. As Joe Biden kept repeating the lie that the “intelligence community” had pronounced the laptop story “Russian disinformation” and American voters were herded and manipulated by those who’d chant “Democracy Dies in Darkness.” Actual source of the fraud was the government itself. & Democrats
Source: NPR - 🏆 96. / 63 Read more »
A congressional report says financial technology companies fueled rampant PPP fraudA sprawling congressional report accuses several little-known financial technology companies, or fintechs, of reaping 'billions in fees from taxpayers while becoming easy targets for those who sought to defraud the PPP,' or Paycheck Protection Program.
Source: KPBSnews - 🏆 240. / 63 Read more »
House report claims fintechs processed billions in fraudulent PPP loans - Jacksonville Business JournalAmid the debate about whether fintechs should have a larger role in government-backed small-business lending programs, a new report claims fintechs processed billions in fraudulent PPP loans.
Source: JaxBizJournal - 🏆 599. / 51 Read more »