Fraud Alerts Related to the COVID-19 Pandemic

By Dr. Rich Austin

First, I would like to express my sincere condolences to anyone who has dealt with loss, sickness, or other issues that have widely accompanied the COVID-19 pandemic. Fortunately, due to the #FlattenTheCurve movement, the worst that many folks endured was adjusting to sheltering in place and trying to educate and entertain our children in the wake of school closures.

While we may be much less likely to catch this awful virus while sheltered at home, there are other predators you should be aware of. These predators, not unlike the coronavirus, are a threat that is often difficult to perceive. But, fortunately, you can easily do things to protect yourself against criminals who are trying to use this crisis to defraud unsuspecting victims.

Fraud Often Rises in Crises

It is widely known among those in the fields of emergency management and law enforcement that fraud becomes more prevalent during times of crises. This has historically been seen in natural disasters such as Hurricane Katrina. The problem was so prevalent in that era that a federal task force was developed just to address Katrina-related fraud schemes. According to the FBI, even days before Katrina made landfall, schemers propped up fraudulent websites in hopes of misdirecting charitable donations for personal gain, including the collection of personally identifiable information (e.g., credit card numbers, bank account information, Social Security numbers, etc.).

Unfortunately, the law enforcement community nationwide is seeing similar types of fraud related to COVID-19. The difference is that since the pandemic is worldwide and affects most everyone, the opportunity for this type of criminal activity is exponential. So, what types of crimes are we seeing based on the current situation?

Scams Promising Federal Relief or Private Aid

According to the Federal Trade Commission, the agency has been flooded with information about fraudulent robocalls, phishing emails, and text messages that promise relief that the victim is supposedly entitled to receive. Many victims may believe the calls are from actual aid they may have legitimately applied for, so consumers should be especially careful if they have an application for aid under consideration such as unemployment assistance.

Many of these calls also fraudulently offer low interest loans, mortgage relief, or even a government relief check. The problem occurs when the victims give their personal information and experience identity theft or provide money upfront in order to receive payment, which never arrives.

Protect Yourself

Government agencies will never ask for your personal information, login information, or any types of payment through gift cards, wire transfer, or Bitcoin. Be especially wary of callers offering goods or services that are not widely available such as COVID-19 testing, remedies, or other medical services. 

Often, these scammers will misrepresent themselves as Medicare staff. While most of us want to be charitable and help our neighbors, be sure to thoroughly research any organization before contributing to ensure your donation is going where you think its going. Lastly, if you think you have become the target of fraud, contact your local law enforcement agency.

For more information on how to protect yourself, visit Consumer.FTC.gov or CDC.gov/media/phishing.html.