DOJ Launches Task Force To Fight COVID Fraud

Efforts to counteract illicit schemes are ramping up.

Scammers intent on running COVID-related frauds will have a new federal task force to outsmart if they want to execute their illicit schemes.

In partnership with agencies across the government, the U.S. Department of Justice (DOJ) has established the COVID-19 Fraud Enforcement Task Force to ramp up detection efforts aimed at combating pandemic-driven fraud.

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The federal government has been spending trillions of dollars to combat the economic and public health crisis caused by the pandemic. That massive injection of available cash has sparked pervasive fraud that has included attempts to swindle relief initiatives like the Paycheck Protection Program (PPP). Fraud related to personal protective equipment (PPE) – such as the selling of counterfeit masks – has been rampant.

While the government says it has long been cracking down on crooks intent on COVID fraud, the new task force will intensify those efforts, including augmenting coordination within the Justice Department and with interagency partners to share critical information that will help stop fraud and catch schemers that do commit it.

Relatedly, the task force will “bolster efforts to investigate and prosecute the most culpable domestic and international criminals, prevent the exploitation of government assistance for personal and financial gain, and recover stolen funds,” the DOJ asserted in a statement.

DOJ agencies participating in the task force include the Federal Bureau of Investigation and the department’s criminal and civil divisions. Interagency partners include the Department of Labor, Department of the Treasury, the Small Business Administration and others.

3M, parent company of Top 40 promotional products supplier 3M/Promotional Markets (asi/91240), has worked in coordination with government officials to help fight the distribution of counterfeit N95 masks, which have been in high demand during the pandemic. 3M makes authentic N95s. 3M has actively pursued legal action against some alleged perpetrators. Certain promo companies have been accused of shady dealings related to PPE.