Fraudsters are laundering millions in Covid relief funds through online investment platforms – By Scott Zamost (CNBC) / Mar 29 2021
- Fraudsters are using online investment platforms like Robinhood, TD Ameritrade, E-Trade and Fidelity to launder stolen Covid relief funds intended for small businesses.
- More than $100 million in stolen funds have gone through the four platforms, according to a government estimate.
- Numerous investigations into money laundering through these platforms are underway, according to the Secret Service.
Tech-savvy fraudsters stealing from the government’s Covid pandemic relief programs to help businesses have found a convenient way to launder the money: they’re opening accounts with at least four online investment platforms, law enforcement officials said.
The digital platforms, investigators said, are easy to dump the money into by setting up accounts with stolen identities. More than $100 million in fraudulent funds passed through investment accounts since Congress passed the CARES Act last March, according to authorities.
A bipartisan group of Democrat and Republican members of Congress as they announce a proposal for a Covid-19 relief bill on Capitol Hill on December 01, 2020 in Washington, DC.
Tasos Katopodis | Getty Images
Thieves have used Robinhood, TD Ameritrade, E-Trade and Fidelity to launder the money, a law enforcement source said.
The government quickly rolled out the Paycheck Protection Program and the Economic Injury Disaster Loan, or EIDL, program last year to help small businesses. Both programs have been plagued with problems. An inspector general’s report issued last October blamed inadequate controls for billions of dollars in potential fraud.
