[javascript protected email address] | Phone: 978-463-9350 | www.cpa-services.com

Protect Your Business From COVID-19 Scams

Small Business Administration Grapples With Fraudulent Loan Applications

COVID Virus

Financial institutions are raising red flags about suspected fraud surrounding the Small Business Administration’s COVID-19 Economic Injury Disaster Loan (EIDL) program, according to the SBA’s Office of Inspector General.

Nearly 440 financial institutions ranging from small, local credit unions to major national institutions are alerting the SBA about suspected fraudulent EIDL loan applications. The IG's office identified $250 million in EIDL loans and advance grants given to potentially ineligible businesses and found $45.6 million in potentially duplicate payments.

Examples of suspicious activity reported by financial institutions include:

  • Accounts established using stolen identities
  • Account holders unable to explain origins of deposits or identify business names on loans
  • Account holders attempting to transfer funds into investment or foreign accounts
  • Loan deposits being made into accounts with no other account activity that were established remotely just before receiving the loan funds
  • Account holders attempting to withdraw loan funds in cash or transfer the funds to other newly established accounts

In some situations, financial institutions have frozen funds and are trying to contact the appropriate department in the SBA to provide information about the borrower and resolve the frozen funds.

How to protect your business

  • Apply for SBA loans through your lender. All SBA loan applications must go through a preferred lender. The SBA WILL NOT initiate contact asking you to apply for an EIDL loan or any other SBA loan.
  • Look out for phishing attacks using the SBA logo. These may be attempts to obtain your business’s personally identifiable information.
  • The presence of an SBA logo on a webpage does not guarantee the information is accurate or endorsed by the SBA. You should cross-reference any information you receive with your lender, or visit www.sba.gov to verify information.
  • Report any suspected fraud to the Inspector General’s office at 800-767-0385 or online by clicking here.

Last updated: 07/31/2020

Have questions? Contact us.

RILEY & ASSOCIATES, PC
Strategic and Smart Tax Planning and Preparation for Individuals and Businesses Worldwide
5 PERRY WAY | NEWBURYPORT, MA 01950
www.cpa-services.com | [javascript protected email address]
Phone: 978-463-9350 | Fax: (978) 462-2109 | Mobil (978) 270-9260

FacebookTwitterLinkedInGoogle Business
© 2020 | Terms of use

RILEY & ASSOCIATES, PC COVID-19 Tax Resource Portal

Terms of Service

The Covid-19 Tax Resource Portal (herein after referred to as "Site") is made available as a service to our clients and others for informational purposes only. These materials and information should not be considered as, or a substitute for, accounting, tax or financial advice. While it is hoped the materials provided here are helpful as background material, it is not warranted either expressly or implied as accurate or complete. You should refrain in taking any action based upon the information provided here until you have received proper counsel.

In addition, you understand that any links to any other web site or services does not constitute endorsement of or warranty of any service, product or information provided on their site(s). These links are provided for convenience only.

While our intent is to make transmissions to and from this web site secure, it is understood that no warranty of security can be made and that unforeseen security breaches by "hackers" is a possibility, however slight.

Reproduction of part or all of the contents on this site in any form is prohibited other than for individual use only. All content on this site is copyright protected and/or trademarked as appropriate and may not be copied, duplicated or altered in any way.

In no event shall RILEY & ASSOCIATES, PC, its affiliates or suppliers of any content on this site be liable for any indirect, incidental, special, punitive damages or consequential damages of any kind, or any damages whatsoever arising out of or related to your use of the Site, the content and other information obtained therein.

IF YOU DO NOT AGREE TO THE TERMS OF SERVICE, IMMEDIATELY STOP ACCESSING THIS SITE.

© 2020 . All Rights Reserved.

Close window