Toby Scrammel, the CEO of Womply, got a letter from Congress this week about fraud. Womply manages the online lending platform that helped over 1,000,000 businesses get PPP loans this year.
The letter came from Senator Clyburn, the Chairman of the Select Subcommittee on the Coronavirus Crisis and the committee has set their sites on Womply and other Fintech companies who they believe failed to adequately screen PPP loan applications for fraud.
And they might be right, recent analysis suggests that 9 of the top 10 lenders with the highest PPP fraud rates were Fintech lenders.
The Senator Made 24 Seperate Requests From Womply
In the letter, the senator asked Womply for some very specific things which could keep Womply busy for a while. It also points to the fact that they are going to take a very hard look at all the controls that were in place at Womply.
You can read the letter here
Womply Might Have Been Targeted By Fraudsters in May of This Year
I had previously written about Womply in May of this year when I saw some wild chatter on Telegram which indicated scammers and fraudsters were targeted the portfolio.
The article was called Is Womply Getting Whomped By PPP Fraud? . At the time it appeared that fraudsters have figured out ways of getting by Womply’s fraud controls using facemasks and other techniques to hide the fact they were using stolen identities.
Fintech’s are in for a rough year in 2022 while Congress investigates their controls during the PPP loan program.