Is Fraud Contagious? Social Connections and the Looting of COVID Relief Programs

• 成果类型: Article; Early Access
• 署名作者: Griffin, John M.; Kruger, Samuel; Mahajan, Prateek
• 署名单位: University of Texas System; University of Texas Austin
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454; 1465-7368
• DOI: 10.1093/rfs/hhag004
• 发表日期: 2026-03-23
• 关键词: G21; G23; G28; H12; networks; determinants; diffusion; crime

摘要

Fraud indicators within the Paycheck Protection Program (PPP), a major COVID relief program, are highly geographically concentrated. ZIP codes and counties with high rates of suspicious PPP loans are strongly socially connected, with evidence that fraud spreads spatially over time through social networks. Individuals in suspicious social media groups have higher rates of PPP fraud, and socially connected ZIP codes frequently use the same specific FinTech lenders, consistent with social networks influencing detailed loan decisions. Our findings suggest that more proactive data analysis is needed for fraud prevention, detection, and prosecution to prevent the social spread of fraudulent schemes.