Buyer Beware: How to Avoid Scams, Fraud, & Rumor During an Emergency

June 9, 2020 by Blog Administrator

Smartphone showing a call from an Unknown Caller

When a disaster or emergency affects a community, it’s normal for the people in that community to come together. Many people go out of their way to care for each other and find ways to get involved. But other people may try to profit off or take advantage of people’s fear and anxiety.

Scams, fraud, & price gouging during the COVID-19 pandemic

The amount of scams has risen since the start of the coronavirus disease 2019 (COVID-19) outbreak. Reports to the Federal Trade Commission (FTC) show that scams have cost the public millions since the beginning of January.(1) The actual cost of such scams could even be higher, because many people may not report scams, know they were scammed, or know where to make a report.

Scam artists and fraudsters are using different strategies (such as promising cures and supplies or posing as representatives of charities and the government) and different methods (like text messages, phone calls, emails, and home visits) to make a profit and gain access to personal information.

The schemes used by scammers to trick people into believing that they are legitimate have, over the years, grown increasingly complicated. Protect yourself by staying informed of scams and their methods and taking steps to protect yourself.

Email & snail mail

Email scams are forms of phishing. Phishing is a fraudulent email scam that can trick a person into clicking on a link or downloading an attachment to reveal their personal information. Stolen personal information can be used to apply for credit, file taxes, or get medical services, and can damage your credit status, and cost you time and money.

Another mail scam is through “snail mail” (through the postal service) sent to your home. There were reports in March 2020 that people received letters on official-looking letterhead that threatened suspension of Social Security benefits because of COVID-19-related office closures. The fake letters instructed beneficiaries to call a phone number and talk to an “agent” who would try to mislead callers into sharing personal information and sending payment.(2)

Telephone calls & text messages

The Federal Communications Commission (FCC) has received reports of scam text message (called smishing) and fraudulent robocall (called vishing) campaigns offering free home testing kits, promoting bogus cures, and selling health insurance.

In March, the U.S. Department of Health and Human Services Office of Inspector General reported that scammers were offering unapproved and illegitimate COVID-19 tests to Medicare beneficiaries in exchange for personal details, including Medicare information.(3)

More recently, FTC warned of a text message scam. Scammers–pretending to be contact tracers–are sending text messages with a link. Clicking on the link downloads software that gives scammers access to personal and financial information. Ignore and delete these messages.

Internet

The Internet and social media can be sources of entertainment and social connection (especially under the current circumstances), but they are also favorite hangouts for scammers promoting all kinds of fake products.

The Federal Trade Commission and the U.S. Food and Drug Administration posted consumer warnings about fake websites used to promote bogus products. It’s important to ignore online offers for vaccinations and be careful of advertisements for test kits. There are no products proven to treat or prevent COVID-19 at this time. If you have questions about testing or test kits, it’s best to ask your doctor, nurse, or clinic.

In addition, people are using the internet to re-sell products at higher prices. Price gouging is when a seller charges a much higher price for goods or services than is considered reasonable or fair. Reports of price gouging on everything from groceries, to toilet paper and hand sanitizer are occurring nationwide.

Individuals with information on price gouging of supplies necessary to the COVID-19 response are encouraged to call the Department of Justice’s National Center for Disaster Fraud at (866) 720-5721, or complete a NCDF Web Complaint Form.(4)

How to protect yourself & others

As scammers and fraudsters get more advanced in their planning and execution, it’s important that everyone be careful. Here are some tips from the FCC to help you protect yourself from scams, including coronavirus scams:

Protect important paperwork and keep personal information secure. That includes never sharing your personal or financial information through email, text messages, or over the phone.
Don’t open or respond to calls, texts, or emails from unknown senders. Scammers often spoof phone numbers to trick you into answering or responding. Spoofing makes it appear as if their phone call is coming from a known or trusted phone number or familiar geographic location.
Be cautious if you’re being pressured to share personal information over email or the phone. Government agencies will never call you to ask for personal information or money.
Hover over links (hold the mouse cursor) sent to you in an email or text message. If anyone sends you a text or email with a suspicious link and spelling errors, or if the message just seems out of character for the sender (maybe a friend or family member), call them to make sure they weren’t hacked.
Do your homework: Check to make sure a charity is legitimate by calling them or looking at its actual website before donating.
Report COVID-19 and other disaster-related scams to the National Center for Disaster Fraud at 866-720-5721 or disaster@leo.gov.

Rumor & misinformation

Rumor and misinformation are forms of deception that can cause as much harm to your mental and emotional health as scams and fraud can cause to your financial well-being. In a rapidly changing situation like the COVID-19 outbreak, it is important to know how to stay informed, and what you can do to help put a stop to misinformation.

Do some legwork. Cross-check what you read online with what subject matter experts at CDC, FEMA, and the World Health Organization have to say on the same topic or issue.
Avoid and do NOT spread opinions that can divide people or discriminate. If you see information that is negative against an entire group of people, or that you know is false, say something. Help to share key facts, guidance, and answers to frequently asked questions with people in your social networks at work, school, and online.
Show grace. If someone you know is spreading misinformation, do NOT lecture or ridicule them publicly. Instead, contact that person calmly and privately with a phone call, over text, or by direct message.

As important as it is to stay informed of the situation, there is such a thing as too much information. Try to limit your family’s exposure to news, including social media, and coverage of the outbreak. Children, for example, can misinterpret what they hear and can be frightened about something they do not understand. You can visit here to learn more about talking to children about coronavirus.

For answers to frequently asked questions about COVID-19, visit the CDC website.

Resources

References

(1) https://www.consumer.ftc.gov/blog/2020/04/covid-19-scam-reports-numbers?utm_source=govdelivery

(2) http://fortworthtexas.gov/news/2020/04/COVID-19-Social-Security-Suspension-Scam/

(3) https://oig.hhs.gov/coronavirus/fraud-alert-covid19.asp

(4) https://www.justice.gov/file/1264276/download

Thanks in advance for your questions and comments on this Public Health Matters post. Please note that the CDC does not give personal medical advice. If you are concerned you have a disease or condition, talk to your doctor.

Have a question for CDC? CDC-INFO (http://www.cdc.gov/cdc-info/index.html) offers live agents by phone and email to help you find the latest, reliable, and science-based health information on more than 750 health topics.

June 9, 2020 by Blog Administrator