In the movie Office Space, Peter Gibbons uses his authorized access to Intech's systems to steal funds from his
workplace and enrich himself.
While Peter is a beloved character, he's also an
insider threat.
Many cases of fraud in pandemic relief programs involve insider threat, i.e., when an individual uses their authorized access to pandemic funds
to break the law and enrich themselves.
Law enforcement has investigated cases that involve federal and local officials abusing their access to funds and employees in financial
institutions submitting fraudulent applications for relief funds.
Federal Employees
Five current or former IRS employees were charged in October 2022
for allegedly defrauding several pandemic relief programs. They
reportedly used their unique systems access to obtain pandemic relief funds. In total their insider threat tactics netted them over $400,000 collectively. They used the stolen funds to purchase expensive cars, jewelry and fund lavish vacations.
Employees of Financial Institutions
In Charlotte, NC, three individuals allegedly teamed up to fraudulently obtain more than $1,000,000 in PPP loans. One of the individuals was
an employee of a nationally chartered bank and used her position
to create counterfeit IRS forms for nonexistent businesses. In total
she submitted over 30 false PPP applications to enrich herself and
her co-conspirators.
Elected Officials
A former Connecticut State Representative was sentenced last
month for stealing more than $1,200,000 in COVID relief funds meant
for the city of West Haven. His role in the state government was to
approve designated relief funds. He admitted to taking advantage of his
role by conspiring with his wife and two others to embezzle the federal
grant money. He allegedly spent tens of thousands of taxpayer
dollars at the Mohegan Sun Casino.
Public Trust Officials
In 2020, a contractor for Michigan's Unemployment Insurance Agency conspired with fraudsters to defraud the system of over $3,800,000.
The fraudsters submitted false claims and the contractor approved
them using her access to the state's unemployment system. In total
over 700 claims were processed with many using stolen identities. For processing the claims the contractor received hundreds of thousands of dollars in kickbacks.
💰 Loose Change 💰
There has been some recourse in the financial industry
banning employees from employment if it was discovered
they were involved in pandemic fraud.
In October 2022, the Federal Reserve Board announced it had
banned five former bank employees from future employment in the
banking industry for fraudulently obtaining loans and grants
administered under the CARES Act.
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