DOJ IG: Victims of COVID Relief Fraud Identity Theft ‘Struggling’ with Little Recourse for Problems ‘Created’ by Agencies

During portions of an interview with ABC News aired on Tuesday, DOJ Inspector General Michael Horowitz said that victims of identity theft used to obtain coronavirus relief have little in the way of recourse at the federal level, and “victims are often struggling out there to deal with these problems that were created by others that the agencies didn’t do enough to protect their identities.” Horowitz also blasted the Small Business Administration (SBA) for ignoring warnings to not rely on self-certification.

Horowitz stated that “The Small Business Administration inspector general, right at the outset of the pandemic, said, stop relying on self-certifications, check people, make sure they’re real people. We had months and months of that occurring without going back and fully checking people’s identities.” And “If you give fraudsters a running start like that, they’re way ahead at that point, which is why it’s taking us years to figure this out.”

He also stated, “Unfortunately, for most, on the federal level, there [are] very [few] resources available.” And “What we’re seeing is the victims are often struggling out there to deal with these problems that were created by others that the agencies didn’t do enough to protect their identities.”

Horowitz also said that “when you put out that much money, and you don’t really require much more than filling out a form, it’s pretty easy to make things up.”

Horowitz also said, “[A]t this point, three years out, I can’t say definitively how much fraud there actually was.”

Follow Ian Hanchett on Twitter @IanHanchett

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