Lloyds Hit With $350 Million In Scam COVID Loans Lloyds Hit With $350 Million In Scam COVID Loans British banks have classified some $1.1 billion pounds (US$1.26bn) worth of emergency pandemic loans as fraud, according to data published Monday by the UK''s Department for Business, Energy and Industry (BEIS). Of that, Lloyds Banking Group has been hit the hardest - at roughly 300 million pounds (US$346 million) of the so-called "bounce back" loans intended for small businesses. The bank also saw a higher ratio of likely fraud, with some 3.6% of its 8.5 billion pounds of bounce back loans marked as suspicious , according to Reuters . Barclays, NetWest, and HSBC fared better, at 2.4%, 1.7% and 1.3% of loans classified as suspected fraud. "Where fraud has been identified, we have acted promptly and have already recovered the majority of these funds without calling on the guarantee and we will continue to attempt to do so even after a claim has been submitted," a Lloyds spokesman told Reuters , adding that at least it''s lower than the 7.5% average estimated by the scheme''s administrator, the British Business Bank.