We identified potential fraud by individuals using stolen or invalid Social Security numbers (SSNs) when applying for the Small Business Administration’s COVID-19 Economic Injury Disaster Loan (COVID-19 EIDL) program and Paycheck Protection Program (PPP), and the Department of Labor’s pandemic-related Unemployment Insurance (UI) programs.
What We Found
Our analysis found nearly 24,000 records with questionable identifying information when checked against the Social Security Administration’s (SSA) verification system. Projected across all the applications, our analysis suggests 1.4 million potentially stolen or invalid SSNs linked to over $79 billion in potentially fraudulent payments.
Why it Matters
We found that fraud could have been prevented if applicants for PPP loans had been required to provide their date of birth (DOB). In addition, agencies should have data-sharing agreements in place with the SSA to verify identities before paying out funds.
DOB Information
Unlike COVID-19 EIDL and UI applicants, PPP applicants were not required to provide a DOB. Excluding this data point prevented the identification of potentially stolen or invalid SSNs.
Data Sharing
Data sharing and identity verification before disbursing funds helps ensure payments are made to legitimate applicants.
Using a recognized source for identity verification, such as the SSA, enables agencies to effectively focus their efforts on a significantly smaller subset of the applications for further examination.
Key Takeaway:
Pre-award vetting using our advanced data analytics could have prevented over $79 billion in potential COVID-19 EIDL, PPP, and UI fraud from applicants using stolen or invalid SSNs.