Federal authorities have been unable to prevent billions of fraudulent PPP loans.

CBS has exposed a rampant scam in the Chicago area during the COVID-19 pandemic.

Now, a new federal report states that US government agencies have dropped the ball to prevent billions of dollars in fraudulent loans.

According to the report, there was no oversight the government did not take anti-fraud measures when implementing the payroll system.

As the COVID-19 pandemic continued, the money the federal government

spent to sustain business growth stopped flowing. The paycheck protection program has been closed.

A total of $ 815 billion in PPP loans have been issued,

and the new report now questions "more than $ 4.6 billion and more than 70,000 potentially fraudulent PPP loans."

First, CBS discovered over 1,000 Mercum ghost companies funded by a paycheck program for small businesses struggling during a pandemic.

The ghost shop had a fake address and was not licensed.