British Business Bank warns of fraud risks with coronavirus business loans

02 Oct 2020

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.'

Home | Contact us | Accessibility | Disclaimer | GDPR (including Standard Terms of Business) | Help | Site map |

© 2020 BPU Accountants. All rights reserved.

We use cookies on this website, you can find more information about cookies here.


BPU Chartered Accountants is the trading name of BPU Ltd Company number 3723948 registered in Wales. Registered to carry on audit work in the UK and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales.

BPU Financial Solutions Ltd is an Appointed Representative of ValidPath Limited which is authorised and regulated by the Financial Conduct Authority. ValidPath Limited is entered on the Financial Services register (www.fca.org.uk/register) under reference 197107.

BPU Accountants, Radnor House, Greenwood Close, Cardiff Gate Business Park, Cardiff CF23 8AA
BPU Accountants, The Counting House, Pound Field, Llantwit Major, Vale of Glamorgan CF61 1DL