In our January 2023 fraud alert, we determined that the names, Social Security numbers (SSNs), and/or dates of birth used in connection with a targeted selection of COVID-19 Economic Injury Disaster Loans (COVID-19 EIDL) and Paycheck Protection Program (PPP) applications did not match information in the Social Security Administration's records.
Our additional analysis using the Department of the Treasury’s (Treasury) Do Not Pay (DNP) system identified $38 million in potentially improper or fraudulent loans obtained using SSNs of deceased individuals.
What We Found
We provided the Treasury’s DNP system with 20,404 SSNs and obtained the dates of death for 15,307 of those SSNs. Using the date of death information, we identified approximately $38 million in COVID-19 EIDL and PPP funds that were paid to 305 individuals who died months or even years prior to the application or payment date.
Why it Matters
Our results show the potential benefits of agencies using the Treasury’s DNP system to verify recipients’ eligibility for payment which strengthens program integrity and better protects the public.
Key Takeaway:
Applicants using SSNs of deceased individuals received approximately $38 million in potential improper payments.
The Treasury's DNP system is a centralized database that helps agencies verify recipient's eligibility before releasing federal funds. It can identify individuals who are deceased, incarcerated, delinquent on federal debts, debarred from participating in federal programs, or using invalid personal identifiers.