Government fraud squad hunts down Covid loan scams

26 Jun 2026

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

The Public Authorities Fraud Investigation and Enforcement Service (PAFIES) has begun pursuing suspected fraudsters.

The investigators will have new powers, including 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.

In addition, the window to pursue Covid fraudsters has been doubled from six to 12 years with all new powers becoming available to the government fraud squad this autumn.

Satvir Kaur, Parliamentary Secretary in the Cabinet Office, said: 'Those who chose to exploit a national crisis to line their own pockets now have nowhere left to hide.

'Our decision to go after those who have cheated the system as part of our wider crackdown on fraud against public services has already helped save £7.5 billion. We will use every tool at our disposal to protect public money and fund the frontline services the British people rely on.'