British Business Bank warns of fraud risks with coronavirus business loans | WDM

Twitter
Follow us on Twitter
MENU
8
October

British Business Bank warns of fraud risks with coronavirus business loans

The British Business Bank has warned of ‘significant fraud risks’ with coronavirus (COVID-19) business loans.

The Bank recently published a letter to the Secretary of State for Business, Energy and Industrial Strategy, Alok Sharma, outlining concerns in regard to fraud and the COVID-19 Bounce Back Loan Scheme (BBLS). The BBLS enables small and medium-sized businesses affected by COVID-19 to access finance more quickly.

The British Business Bank previously warned ministers that COVID-19 business loans could be subject to fraud.

Commenting on the issue, Keith Morgan, CEO of the British Business Bank, said: ‘The scheme is vulnerable to abuse by individuals and by participants in ogranised crime.

‘Alongside the fraud risk, there will be considerable credit risk in the current economic environment, which will be exacerbated by removing significant elements of the credit checks that would otherwise have been undertaken.’

A government spokesperson stated: ‘We’ve looked to minimise fraud, with lenders implementing a range of protections including anti-money laundering and customer checks, as well as transaction monitoring controls.

‘Any fraudulent applications can be criminally prosecuted, for which penalties include imprisonment or a fine, or both.’

7 Questions you must ask an accountant
How To Grow your business by 46.4% - Special Free Whitepaper
To get the free whitepaper, simply enter your name and e-mail address below and click the Get FREE Whitepaper button. You will receive an email shortly with your FREE Whitepaper pdf from our team...

Fields marked with an * are required

By submitting this form you agree to receive information via email newsletters about products and services from WDMCA which we think may interest you. You can opt out of receiving these newsletters by clicking the unsubscribe link in newsletters we send.

Download our FREE iPhone app

Testimonials

From the opening of our store to the eventual sale of four stores seventeen years later, WDM have provided invaluable assistance all the way along. They are more than just an accountant to us and we couldn't speak highly enough of them.

Pat McKenna - McDonalds Franchisee
Sign up to our newsletter
Oakfield House, 378 Brandon Street, Motherwell ML1 1XA        t: 01698 250 251        f: 01698 250 261