First Action in Federal Court to combat fraud linked to COVID-19
When the World Health Organization (WHO) designated COVID-19 as a ‘pandemic’ earlier this month, fraudsters saw an opportunity to prey upon vulnerable individuals during difficult times. Scammers have already devised numerous methods for defrauding people in connection with COVID-19.
For instance, the United States Department of Justice announced that it filed an action on the 22nd of March 2020 in federal court to combat fraud related to the coronavirus pandemic. The complaint is against the operators of the website “coronavrusmedicalkit.com” who are engaging in a wire fraud scheme seeking to profit from the confusion and widespread fear. The scammers have set up a website claiming to offer consumers access to World Health Organization (WHO) vaccine kits in exchange for a shipping charge of $ 4.95, which they would eventually pay using their credit card when in fact the WHO is providing no such vaccines.
Scammers are also contacting people via phone pretending to be clinic or hospital officials. They claim that a relative of the victim has fallen sick with the virus and request payments for medical treatment.
Some examples of other types of scams linked to COVID-19 include:
- Treatment scams: Scammers are offering to sell fake cures, vaccines, and advice on unproven treatments for COVID-19.
- Supply scams: Scammers are creating fake shops, websites, social media accounts, and email addresses claiming to sell medical supplies currently in high demand, such as surgical masks. When consumers attempt to purchase supplies through these channels, fraudsters pocket the money and never provide the promised supplies.
- Provider scams: Scammers are also contacting people by phone and email, pretending to be doctors and hospitals that have treated a friend or relative for COVID-19, and demanding payment for that treatment.
- Charity scams: Scammers are soliciting donations for individuals, groups, and areas affected by COVID-19.
- Phishing scams: Scammers posing as national and global health authorities, including the World Health Organization (WHO) and the Centers for Disease Control and Prevention (CDC), are sending phishing emails designed to trick recipients into downloading malware or providing personal identifying and financial information.
- App scams: Scammers are also creating and manipulating mobile apps designed to track the spread of COVID-19 to insert malware that will compromise users’ devices and personal information.
- Investment scams: Scammers are offering online promotions on various platforms, including social media, claiming that the products or services of publicly traded companies can prevent, detect, or cure COVID-19, and that the stock of these companies will dramatically increase in value as a result. Given the nature of the problem, the Federal Court issued a temporary restraining order against the website offering fraudulent corona virus vaccine. Additionally, U.S. District Judge Robert Pitman issued a temporary restraining order requiring that the registrar of the fraudulent website immediately take action to block public access to it.
The United States also announced that an investigation of the website and its operators continues. The government is also employing a federal statute that permits federal courts to issue injunctions to prevent harm to potential victims of fraudulent schemes.
The Department of Justice recommends that people take the following precautionary measures, amongst others, to protect themselves against scams related to COVID-19:
- Verify the identity of individuals and entities that contact you regarding COVID-19.
- Do not click on links or open email attachments from unknown or unverified sources.
- Be wary of phony websites that provide information or products related to COVID-19. Their website/email address often closely resemble that of the entity they are impersonating.
- Beware of unsolicited emails soliciting personal information. Legitimate health authorities will not contact the general public this way.
- Charities or crowdfunding sites soliciting donations in connection with COVID-19 may not all be genuine even if they use world like “CDC” or “government” in its name or has reputable looking seals or logos on its materials.
- Be wary of any business, charity, or individual requesting payments or donations in cash, by wire transfer, gift card, or through the mail. Don’t send money through any of these channels.
Source: United States Department of Justice
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