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"We Are Not the Fraud Police": How Fintechs Facilitated Fraud in the Paycheck Protection Program
House Committee on Oversight and Reform Select Subcommittee on the Coronavirus Crisis
House Committee on Oversight and Reform
Select Subcommittee on the Coronavirus Crisis
Abstract
The Select Subcommittee on the Coronavirus Crisis of the House Committee on Oversight and Reform investigated the role of financial technology companies (fintechs) in facilitating a disproportionately high rate of fraudulent and ineligible loans through the Paycheck Protection Program (PPP). The report states that despite fintechs' claims of using technology and innovation to better administer the PPP, many of them failed to prevent obvious and preventable fraud. Some prominent fintechs, including Womply, Blueacorn, Kabbage, and Bluevine, faced challenges in properly administering the program, with instances of missed signs of fraud and inadequate fraud prevention processes.
Date
2022-12-01
Document Type
House Staff Report
Serial Number
Document Length
130 pages
Congress
117
Relation
DOI
Keywords
Staff Reports
PAP Major Code
15: Banking, Finance, and Domestic Commerce
PAP Minor Code
1501: U.S. Banking System and Financial Institution Regulation