Research News
SUNY Polytechnic Institute (SUNY Poly) Assistant Professor of Accounting Dr. Katie Matt, in collaboration with Daniel Hebert of Syracuse University, recently published research examining the widespread fraud associated with the federal Paycheck Protection Program (PPP) during the COVID-19 pandemic. Their article, "Governance and Fraud Prevention in Federal Relief Programs: Insights from the Paycheck Protection Program," was published in the Journal of Accounting, Ethics & Public Policy in September 2026.
The study explores how the rapid rollout of the PPP, which was designed to provide emergency financial assistance to small businesses, created opportunities for fraud due to limited oversight and verification procedures. With an estimated $64 billion in fraudulent claims, according to the U.S. Small Business Administration Inspector General, the researchers examined publicly prosecuted fraud cases to identify weaknesses in the program's structure and oversight. Their analysis highlights how falsified financial documents, fictitious businesses, and inadequate screening procedures allowed individuals to obtain millions of dollars intended for struggling businesses.
Drawing on these findings, Matt and Hebert recommend stronger safeguards for future federal relief programs, including improved applicant verification, centralized fraud prevention efforts, greater involvement of forensic accountants, and enhanced oversight of financial technology lenders. The researchers also explore how artificial intelligence could help identify suspicious applications and detect potential fraud. Their work emphasizes the importance of balancing the urgent delivery of financial assistance during national emergencies with effective measures to protect public funds and ensure support reaches those who need it most.
Explore Dr. Matt's Research Paper
