UK targets culprits behind multi‑billion COVID loan scams

On Tuesday, the United Kingdom announced the creation of a new counter‑fraud unit tasked with investigating and prosecuting individuals who defrauded the public during the COVID‑19 pandemic.

The Public Authorities Fraud Investigation and Enforcement Service (PAFIES) has begun monitoring suspected fraudsters, employing the most advanced investigative tools available in recent years.

Investigators now have the authority to search suspects’ premises and seize funds from their bank accounts if they do not repay. The statute of limitations for the operation has been extended from six to twelve years, running through 2032.

This step follows measures introduced in the 2024 and 2025 budgets, which are estimated to have safeguarded £7.5 billion of public funds from fraud over a two‑year period.

Chancellor Rachel Reeves said the action contrasts with the previous government, which “left the door open to £10.9 billion of pandemic‑era fraud and error,” adding that the culprits “will pay.”

Satvir Kaur, Parliamentary Secretary in the Cabinet Office, said that those who exploited the national crisis to enrich themselves now have nowhere to hide.

The government said that individuals and entities who did not respond to the Voluntary Repayment Scheme last year will now face the full extent of the new powers.

A reporting website launched in September 2025 has received more than 1,000 reports of suspected COVID‑fraud. Nearly 2,000 company directors have been banned, and 86 individuals have been prosecuted to date.