The Public Accounts Committee has warned that plans to recover £26bn of fraud and defaults on coronavirus business support loans are "woefully underdeveloped". The committee of MPs has published a report which says losses on the State-backed loans could be higher than £26bn because the government has not properly assessed the extent of potential fraud on the schemes. It says ministers have not developed a counter-fraud strategy for the schemes and have not identified what types of fraud will be prosecuted. High street lenders providing funds under schemes including the Bounce Back Loan Scheme are required to conduct checks on applications. The British Business Bank believes that these checks have prevented around 27,000 fraudulent loans that represent £1.1bn but it has no data on the levels of fraud.
Read more: City AM
Visit our website here for more news and product information, or click the button below to submit a short enquiry form.