COVID-19 Relief: Consequences of Fraud and Lessons for Prevention

What GAO Found

The full extent of fraud within the pandemic-relief programs will never be known with certainty. The scope of the pandemic-relief response; the inherently deceptive nature of fraudulent activities; and the resources needed for detection, investigation, and prosecution of fraud make it difficult to measure. However, estimates indicate hundreds of billions of dollars in potentially fraudulent payments were disbursed.

As of December 31, 2024, the Department of Justice (DOJ) has publicly announced criminal fraud-related charges involving pandemic-relief programs against at least 3,096 defendants—which can be individuals or entities. 

Number of Defendants Charged with Criminal Fraud-Related Offenses Involving Pandemic-Relief Programs and Case Status, as of December 31, 2024

^aDefendants found guilty of pandemic-related criminal fraud charges have been typically sentenced to prison time and ordered to pay restitution. Their sentencing varied based on the circumstances of the offense, as well as other factors.

The number of defendants facing criminal fraud-related charges involving pandemic-relief programs continues to increase, as it takes time for new cases to be identified and developed, and hundreds of investigations are still underway. Additionally, extensions to statutes of limitations may contribute to an increase in cases.

In reviewing DOJ case documentation, GAO identified different types of fraud schemes and fraudsters who defrauded at least 19 different pandemic-relief programs. In addition to more traditional and organized criminal groups, entities in a wide variety of sectors, and individuals from all walks of life, defrauded these programs.

Although criminal prosecutions serve as a key tool in the mission to address pandemic-relief program fraud and recover stolen funds, civil actions offer the government alternative ways to uncover more fraud schemes and recover assets. According to DOJ, from March 2020 to December 31, 2024, it has secured more than 650 civil settlements and judgments, totaling more than $500 million to resolve allegations of fraud or overpayments in connection with the pandemic-relief programs.

Interagency task forces, such as the COVID-19 Fraud Enforcement Task Force, and the Pandemic Response Accountability Committee (PRAC) were established to combat pandemic-relief program fraud. According to the task force’s 2024 report, civil administrative and civil and criminal judicial cases resulted in the forfeiture of over $1 billion in fraudulent proceeds. In December 2024, the PRAC reported that the PRAC Fraud Task Force efforts have led to criminal charges against 111 subjects and assisted the federal government in recovering over $16 million.

Although some individuals might never be swayed from attempting to defraud government programs, agencies can implement deterrence actions—such as emphasizing the consequences of committing fraud and highlighting controls in place—to help prevent future fraudsters. Also, by examining fraudsters and fraud schemes that emerged during the pandemic, agencies can identify fraud mitigation controls that can be implemented in emergency environments and normal operations.

GAO’s Fraud Risk Framework identifies leading practices for agencies to better plan for and take a more strategic approach toward managing fraud risks in normal operations but also when responding to emergency situations. In addition, GAO has recommended numerous actions that federal agencies should take to help ensure they are effectively managing fraud risks and preventing as much fraud as possible up front. For example, GAO recommended that agencies use data analytics to better manage fraud risk.

Further, GAO has released various reports and insights that may help agencies as they prepare and plan to implement controls and mitigate fraud risks for future emergencies. Considering what was likely lost to fraud during the pandemic, it is crucial for agencies to have effective fraud prevention and deterrence strategies.

Why GAO Did This Study

Pandemic-relief programs were critical for assuring public health and economic stability. However, they also created unprecedented opportunities for fraud due to the dollars involved and other risk factors.

Considering what was likely lost to fraud during the pandemic, assessing what lessons and insights can be taken to better prepare for both normal operations and future emergencies is critical for agencies. Beyond financial impacts, fraud erodes public trust in government and hinders agencies’ efforts to execute their missions and program objectives effectively and efficiently. Therefore, it is important to take steps to prevent fraud from occurring in the first place.

While the disbursement of pandemic-relief funds is largely over, the work of investigating, prosecuting, and recovering fraudulently disbursed funds is still ongoing. DOJ and its law enforcement partners continue to prioritize the investigation and prosecution of defendants that committed these offenses.

GAO performed this work under the CARES Act that includes a provision for GAO to report on its ongoing monitoring and oversight efforts related to the COVID-19 pandemic. This report provides information on the status of pandemic-relief program cases involving fraud-related charges brought by DOJ and how agencies can enhance fraud prevention.

For more information, contact Rebecca Shea at shear@gao.gov.