Coronavirus scams are spreading nearly as fast as the virus itself. As of Nov. 9, the Federal Trade Commission (FTC) had logged about 246,500 consumer complaints related to COVID-19 and stimulus payments, two-thirds of them involving fraud or identity theft. Victims have reported losing $180.7 million, with a median loss of $320.
Fraudsters are using the full suite of scam tools — phishing emails and texts, bogus social media posts, robocalls, impostor schemes and more — and closely following the headlines, adapting their messages and tactics as new medical and economic issues arise.
For example, with recent reports of significant progress in the race for a vaccine, crooks have stepped up malicious email campaigns with subject lines like “Urgent information: COVID-19 new approved vaccines,” according to software security firm CheckPoint. The FBI warns that scammers posing as charity fundraisers, soliciting donations to supposedly help individuals, organizations and areas affected by the virus.
Here are some other types of coronavirus scams to look out for.
No vaccines or drugs have been approved specifically to treat or prevent COVID-19, the disease caused by the novel coronavirus. That hasn’t stopped fraudsters from flooding consumers with pitches for phony remedies.
The FTC and the U.S. Food and Drug Administration (FDA) have sent more than 40 warnings to companies selling unapproved products they claim can cure or prevent COVID-19 and shut down a website that was promoting a nonexistent vaccine,.
Teas, essential oils, cannabinol, colloidal silver and intravenous vitamin-C therapies are among supposed antiviral treatments hawked in clinics and on websites, social media and television shows as defenses against the pandemic.
Other scammers claim to be selling or offering in-demand supplies such as masks, test kits and household cleaners, often in robocalls, texts or social media ads. The FTC has issued warnings to companies suspected of abetting coronavirus robocalls, and the Federal Communications Commission (FCC) set up a dedicated website with information on COVID-19 phone scams.
With most Americans having received stimulus checks under the federal CARES Act and tens of millions of people newly unemployed, federal agencies are warning of a wave of schemes to steal government payments. A May survey of jobless Americans by Credit Karma found that more than 1 in 5 had been contacted by scammers about stimulus payments or unemployment benefits.
Watch out for calls or emails, purportedly from government agencies, that use the term “stimulus” (the official term is “economic-impact payment”) and ask you to sign over a check or provide personal information like your Social Security number. Another common stimulus con comes via social media, in scam Facebook messages promising to get you “COVID-19 relief grants.”
With economic anxiety rising, crooks are also impersonating banks and lenders, offering bogus help with bills, credit card debt or student loan forgiveness. Small businesses are being targeted, too, with scammers reaching out to owners with phony promises to help them secure federal disaster loans or improve Google search results.
The outbreak has also spawned stock scams. The U.S. Securities and Exchange Commission is warning investors about fraudsters touting investments in companies with products that supposedly can prevent, detect or cure COVID-19. Buy those stocks now, the tipsters say, and they will soar in price.
It’s a classic penny-stock fraud called “pump and dump.” The con artists have already bought the stocks, typically for a dollar or less. As the hype grows and the stock price increases, they dump the stock, saddling other investors with big losses.
The pandemic has brought about “significant increases in broad-based and targeted phishing campaigns,” according to a July 30 alert from the Treasury Department’s Financial Crimes Enforcement Network (FinCEN).
Since January, tens of thousands of new website domains have been registered with terms related to COVID-19 and the response to it, such as “quarantine,” “vaccine” and “CDC,” FinCEN says. The Justice Department has shut down hundreds of these suspect sites, which promise vaccines and other aid, often in the guise of government agencies or humanitarian organizations.
If you contact one of those malicious domains, you could start getting phishing emails from fraudsters in an attempt either to plant malware on your computer or to get your personal information. Google reported in April that its Gmail platform was blocking 18 million such messages a day.
The FTC and the Justice Department issued an alert about phishing texts and phone calls that are supposedly from contact tracers, warning you that you’ve been exposed to someone with COVID-19. The scam texts include a link that, if clicked, downloads malware to your device. (Messages from actual contact tracers working for public health agencies will not include a link, or ask you for money or personal data.)
These communications often appear to be from real businesses or government agencies, and clicking on links or downloading attached files could import a program that uses your internet connection to spread more malware, or digs into your personal files looking for passwords and other information for purposes of identity theft.
Be careful when you browse for information about coronavirus. Developing and testing vaccines for viruses takes a long time, and you’ll hear about them first from a legitimate source, such as the U.S. Centers for Disease Control and Prevention (CDC) or the World Health Organization (WHO).
Sources: FTC, FCC, FBI, SEC
Article written by John Waggoner for AARP.org: https://www.aarp.org/money/scams-fraud/info-2020/coronavirus.html