The U.S. federal government sent an unprecedented amount of money to fraudsters and international criminal organizations through COVID-19 relief programs, according to a Friday report from the American Enterprise Institute (AEI).

The government has provided an estimated $872 billion in assistance through programs such as the Economic Injury Disaster Loan (EIDL) and the Paycheck Protection Program (PPP), but at least 17% of that, or nearly $200 billion, is “potentially fraudulent.” Matt Weidinger of AEI I wrotequoting, Review after action From the House Select Subcommittee on the Coronavirus Pandemic under the Committee on Oversight and Accountability.

Weidinger said much of the money went to help Americans in need due to coronavirus-related shutdowns, but added that “unprecedented amounts were lost due to improper payments and fraud.” pointed out.

🚨ICYMI: The Special Subcommittee on the Coronavirus Pandemic has released recommendations to improve public health and pandemic response.

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— Selective Subcommittee on the Coronavirus Pandemic (@COVIDSelect) December 5, 2024

The coronavirus relief program has been found to be vulnerable to widespread fraud because it has minimal oversight and allows recipients to self-certify payment eligibility, Weidinger wrote. International criminal enterprises have been particularly successful in exploiting pandemic relief programs.

“Transitional criminal networks engaged in large-scale operations that submitted fraudulent claims, laundered illicit funds through the financial system, and transferred proceeds across borders,” the oversight committee wrote in its report. are.

The commission estimates that at least half of the federal funds lost through the PPP and Interim Unemployment Insurance (UI) were “stolen by international fraudsters.”

Heywood Talcove, CEO of LexisNexis Risk Solutions Government, previously told the Daily Caller that the program was “the largest transfer ever made to a criminal group.” (Related: Small Business Administrator Could Lose More than $200 Billion in Coronavirus Loans to Scammers, Watchdog Finds)

Transnational criminal organizations from a wide range of countries, including China, Russia, Nigeria and Romania, are systematically abusing relief benefits, Talkov told the Caller.

According to the House Oversight Committee, the fraud not only hindered the country’s economic recovery but also strengthened international organized crime networks.

Examples of fraud include the theft of $20 million in relief funds by Chinese state-affiliated hackers, the fraudulent acquisition of more than $8 million through PPP claims by Indian citizens, the filing of nearly 200 unemployment claims in Washington and Massachusetts, and Examples include the Nigerian scam “Operation Scattered Canaries,” which raised almost 1 million yen. 5.4 million dollars.