The US and Puerto Rican governments’ anti-corruption and anti-fraud legislation and policies exacerbated the socio-economic impacts of the coronavirus disease (COVID)-19 pandemic in Puerto Rico (PR). This article demonstrates how anti-corruption interventions prevented those in most need from receiving the economic benefits of the Pandemic Unemployment Assistance program and other unemployment insurance benefits. Analyzing this specific instance of anti-corruption and anti-fraud interventions amid the COVID-19 pandemic allows for a deeper examination of how colonial interventions undermined PR’s capacity to handle the pandemic, exacerbated its socio-economic impact and created an unequal recovery. Thus, the article illustrates the contradictions of anti-corruption as punitive governance and the way in which a specific notion of corruption is reproduced through governmental actions, legal practices, and policies. Altogether, this article aims to contribute to the discussion on how colonial and punitive anti-corruption interventions enhance social exclusion, disproportionately harm racialized communities, and undermine people’s capacity to address period of crisis.