Pandemic scams active during COVID-19

INDIANAPOLIS , INDIANA, UNITED STATES

04.20.2020

Story by Christopher Allbright 

Defense Finance and Accounting Service

Criminals and scammers have seized the COVID-19 pandemic as an opportunity to enrich themselves at the expense of others, according to a Federal Trade Commission report published April 15.

Paul Witt, a consumer advocate, states that between January and April this year, the FTC received 18,235 complaints, and "people reported losing $13.44 million to fraud." Among pandemic-related scams noted in "COVID-19 scam reports by the numbers" are promises of early economic impact aid checks, bogus claims of cures, and calls to donate to fake charities. People have been promised pandemic supply kits and help to recover lost stock investments.

The old adage, "If it sounds too good to be true, it probably is" applies to this time in history.

Some senior citizens reported getting calls from supposed-government officials seeking banking information so stimulus checks could be directly deposited into checking accounts faster. According to information on a Treasury Department website, if an emailer or caller uses the phrase "stimulus check," then delete the message or hang up. The official term is "economic impact payment," and the Internal Revenue Service isn't making such calls. Other tips from the IRS under the title, "Economic Impact Payments, what you need to know."

'TRUST BUT VERIFY'

Charities are popping up on GoFundMe and other sites asking for donations to help victims of COVID-19. Then-President Ronald Reagan popularized the phrase "trust, but verify" during the 1980s when he was making treaties with potential adversaries. The adage seems appropriate now as well. If you've never heard of a particular charity site that otherwise seems worthwhile, then verify it. Be skeptical and do your research before giving.

In early April, the FTC reported the "grandparent scam" had re-emerged with a COVID-19 hook. The emailer or caller pretends to be the grandchild, or calling on behalf of the grandchild, and says he or she is in a hospital and needs money quickly to cover the treatment. The messenger will state, "because of the nature of the illness," time is of the essence.

In "Grandparent scams in the age of coronavirus," attorney Lisa Weintraub Schifferle writes, "They pull at your heartstrings so they can trick you into sending money before you realize it's a scam." For family member scams, Weintraub Schifferle recommends the following:

--Resist the urge to act immediately – no matter how dramatic the story is.
--Verify a caller's identity. Ask questions a stranger couldn't answer.
--Verify the story from a trusted second party or family member.
--Don't send cash, gift cards or money transfers.
--Report the scam to the FTC at ftc.gov/complaint.

ANTI-SOCIAL MEDIA

Be careful what you post on social media. Think twice about filling out those innocent-looking questionnaires and surveys about yourself. Even posting graduation pictures "in honor of the 2020 grads who won't graduate" tells internet trolls and potential identity thieves a lot about you. Survey answers about your first job, first crush, first car, and favorite teacher are interesting little factoids about you, but those tidbits are also potential password and security questions.

Also, don't get sucked into fake warnings about potential scams. An "urban myth" is something that may sound true, and gets widely repeated, but isn't entirely true, even if based on some morsel or fact. One such urban myth cycling through social media was the well-intentioned warning about criminals posing as health care or Red Cross offering home tests for coronavirus. Once inside your door, they would rob you.

No credible reports of this have been happening, according to a March 24 article by the fact-checking team at Reuters, "Partly false claim: People are offering scam door-to-door tests to rob people." The reporters looked at many major cities and could find no reports of this happening. However, as the reporter's note, now that the idea has been planted, it could happen.

ADDITIONAL RESOURCES

--The Centers for Disease Control and Prevention: www.cdc.gov

--National Center for Disaster Fraud hotline, 866-720-5721, [e-mail]

--FBI Internet Crime Complaint Center, https://www.ic3.gov/

--Centers for Disease Control and Prevention COVID-19 site www.coronavirus.gov

--U.S. government collection of sites www.usa.gov/coronavirus

• Date Taken: 04.20.2020
• Date Posted: 12.31.2020 13:23
• Story ID: 386264
• Location: INDIANAPOLIS , INDIANA, US