COVID Counter Fraud Squad Launched

[Tables Force]

A new government counter-fraud squad has launched investigations against those who defrauded the public during the Covid pandemic.

• Limitation period for Covid fraud has been extended to 12 years
• New enforcement unit pursues billions lost to British taxpayers during pandemic
• Recovery efforts intensify as nearly 2,000 company directors banned and 86 criminals prosecuted
• Investigators will be able to search properties, seize assets, and recover money directly from the bank accounts and wages of those who cheated the system

The Public Authorities Fraud Investigation and Enforcement Service (PAFIES) has begun pursuing suspected fraudsters, armed with the strongest investigatory tools in a generation.

Now, new powers will give investigators the ability to search the premises of suspected fraudsters and seize money directly from fraudsters’ bank accounts if they do not pay back what they owe. On top of that the window to pursue Covid fraudsters has been doubled from six to twelve years with all new powers becoming available to the government fraud squad this autumn. Powers from the Public Authorities (Fraud, Error and Recovery) Act 2025 (PAFER Act) extended the limitation period for civil claims relating to Covid fraud against public authorities from six years to twelve, meaning that suspected fraudsters can be pursued until 2032.

The Act will also give the government fraud squad powerful new tools to tackle fraud, including enhanced investigation, search-and-seizure, and information-gathering powers, with the authority to compel information from third parties.

It also introduces civil financial penalties to accelerate enforcement and enables the direct recovery of fraud-related debts from earnings and bank accounts following a PSFA investigation.

Those who did not respond to Voluntary Repayment Scheme last year will now face the full force of the new powers in the autumn.


https://www.gov.uk/government/news/government-fraud-squad-hunts-down-covid-loan-scams

 

[Newchodge]

A new government counter-fraud squad has launched investigations against those who defrauded the public during the Covid pandemic.

• Limitation period for Covid fraud has been extended to 12 years
• New enforcement unit pursues billions lost to British taxpayers during pandemic
• Recovery efforts intensify as nearly 2,000 company directors banned and 86 criminals prosecuted
• Investigators will be able to search properties, seize assets, and recover money directly from the bank accounts and wages of those who cheated the system

The Public Authorities Fraud Investigation and Enforcement Service (PAFIES) has begun pursuing suspected fraudsters, armed with the strongest investigatory tools in a generation.

Now, new powers will give investigators the ability to search the premises of suspected fraudsters and seize money directly from fraudsters’ bank accounts if they do not pay back what they owe. On top of that the window to pursue Covid fraudsters has been doubled from six to twelve years with all new powers becoming available to the government fraud squad this autumn. Powers from the Public Authorities (Fraud, Error and Recovery) Act 2025 (PAFER Act) extended the limitation period for civil claims relating to Covid fraud against public authorities from six years to twelve, meaning that suspected fraudsters can be pursued until 2032.

The Act will also give the government fraud squad powerful new tools to tackle fraud, including enhanced investigation, search-and-seizure, and information-gathering powers, with the authority to compel information from third parties.

It also introduces civil financial penalties to accelerate enforcement and enables the direct recovery of fraud-related debts from earnings and bank accounts following a PSFA investigation.

Those who did not respond to Voluntary Repayment Scheme last year will now face the full force of the new powers in the autumn.


https://www.gov.uk/government/news/government-fraud-squad-hunts-down-covid-loan-scams

Good.

EDIT as i wanted to read the report first. One area of fraud that does not seem to have been noticed is the furlough scheme. I am sure there re a lot of directors who put themselves on furlough while continuing to run their companies. There was one on here at the time insisting that he was entitled to do that. Also I have come across employees who were 'placed' on furlough and continued to work. As employment records only need keeping for 7 years, proving those will be difficult and impossible very soon.

Has anyone else come across that type of fraud?

 

[UK Contractor Accountant]

I am sure there re a lot of directors who put themselves on furlough while continuing to run their companies

they argued that the role of "Director" continued during Covid so they were entitled to be paid for those services ........ furlough pay was extra bunce for hands on work they could no longer carry out.

All a bit of a farce IMO.

 

[Newchodge]

they argued that the role of "Director" continued during Covid so they were entitled to be paid for those services ........ furlough pay was extra bunce for hands on work they could no longer carry out.

All a bit of a farce IMO.

but the rules stated they could only carry out the official dates of a Director. Many did more than that.