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Fraudulent COVID aid drove up U.S. house prices, report says

Fraud against the Paycheck Protection Program was widespread enough to bump up real-estate prices within certain U.S. ZIP Codes, researchers at the University of Texas concluded, blaming the abuse on some of the financial technology companies that provided the loans.

"It’s bad enough that you’re stealing money from the government, but there are also spillover effects,” said Samuel Kruger, an assistant professor of finance at McCombs.

Tags

inflation, fraud, regulation, digitallending