Covenant CPA

  • About CCG
  • Our Team
    • Raiford “Ray” Dyer Jr.
    • Meredith Baxter
    • Larry B Frost
    • Jamie Lambert
    • Morgan Hulsey
    • Susan Harper
    • Khialee Boyles
    • Cindy Hayes
  • Services
    • Accounting & Assurance
    • Tax Advisory
    • Litigation Support
  • Press
    • Business Management
    • College Saving & Spending
    • Estate Planning
    • Fraud Prevention
    • Gift Tax
    • Household
    • Individual
    • Investing
    • Owning a Small Business
    • Retirement
    • Tax Returns
    • Vehicle
  • Events
  • Contact CCG
(205) 345-9898

New year, new fraud to watch out for

New year, new fraud to watch out for

by Morgan Hulsey / Friday, 08 January 2021 / Published in Fraud Prevention

Whew, you made it through 2020! But don’t rest easy yet. Unfortunately, fraud perpetrators enjoyed a profitable year, and there are signs they may continue to feed off Americans as long as the pandemic is active. Here are several scams to watch for in 2021.

PPP fraud

Struggling small-business owners have welcomed last month’s 11th hour extension of the Paycheck Protection Program (PPP). They aren’t alone: Fraudsters skilled at falsifying loan applications are also likely rubbing their hands in anticipation.

The Justice Department has brought charges against at least 80 individuals for stealing $127 million from the first PPP. Law enforcement expects to charge more (likely many more) con artists as evidence is uncovered. Indeed, the House Select Subcommittee on the Coronavirus Crisis claims that at least $14 billion in PPP loans were improper. Not all of these cases were outright fraud, but there’s evidence that some business owners and lenders ignored PPP guidelines.

To help prevent further misuse of these loans, $50 million has been allocated to the Small Business Administration for PPP fraud prevention and audits. To avoid unnecessary scrutiny or legal trouble, business borrowers should make sure they understand all eligibility requirements for PPP loans and are qualified before applying.

Vaccine cons 

Consumer scams related to the pandemic also are still going strong. Even before COVID-19 vaccinations gained FDA approval, fraudsters conned many Americans (primarily via email and online ads) into paying for nonexistent cures and preventive treatments.

This past month, the FBI and several other federal agencies warned that perpetrators are now advertising COVID-19 vaccine “early access” for those willing to pay a fee or submit medical and other personal information. Make no mistake: These are fraud schemes. To receive a vaccine, visit the Food and Drug Administration (fda.gov) or Centers for Disease Control and Prevention (cdc.gov) websites or consult your physician to learn when you will be eligible.

Pet scams

Fraudsters took note when many Americans adopted pets to provide companionship during the pandemic. The Federal Trade Commission is warning about fake ads picturing puppies, kittens and other pets for sale or adoption. The fraudsters typically first request an amount that sounds reasonable up front. Once they receive that, they ask for more and more … for vet bills, health certificates, shipping and anything else they can come up with. Needless to say, there are no actual pets.

You can avoid falling for such scams by performing extensive due diligence. For example, get the name and address of the seller (and verify them) and arrange for a videoconference to see the pet in the possession of the seller. Even better, adopt an animal from a shelter you can visit in person.

Staying safe 

There are a lot of fraud threats out there these days. For help combating consumer and business fraud, contact us.

© 2021 Covenant CPA

Tagged under: fraud, pandemic, PPP

Recent Posts

  • Make your fraud contingency plan a blueprint for swift action

    Over the past year, most businesses have been f...
  • 4 questions single parents should ask about their estate plans

    Did you know that the United States has the hig...
  • Need another PPP loan for your small business? Here are the new rules

    Congress recently passed, and President Trump s...
  • The COVID-19 relief law: What’s in it for you?

    The new COVID-19 relief law that was signed on ...
  • New year, new fraud to watch out for

    Whew, you made it through 2020! But don’t rest ...

ABOUT CCG

Covenant Consulting Group LLC (CCG) was founded in 2007 when our partners decided that clients deserved a holistic approach to better service and attention. CCG takes the best parts of a consulting firm and combines them with the best parts of a traditional CPA firm.

CONTACT CCG

(205) 345-9898

info@covenantcpa.com

TEAM NEAR YOU

Tuscaloosa: (205) 345-9898
Northport: (205) 345-9898
Birmingham: (205) 757-8308
Atlanta, GA: (404) 348-0593
Starkville, MS: (662) 268-6128

  • About
  • Press
  • Accounting & Assurance
  • Tax Advisory
  • Litigation Support

Copyright © 2018 Covenant CPA LLC. All rights reserved.

Webite by J. Ferragut

TOP