Any companies that make their money helping other people get government benefits, are usually sleazy and to be avoided.
So it looks like it wasn’t a bunch of widespread individual fraud, but a bunch of sleazy companies popped up selling the “service” of helping companies qualify for these benefits, and basically committed fraud on the small businesses behalf, telling them and the government that said business qualified for these benefits.
Whenever something shitty happens, there is always a sleaze bag there, makin’ money.