Coronavirus scams listed as Feds and State launch Fraud Task Force

On Friday, March 20, U.S. Attorneys Offices in Virginia announced a partnership between federal and state officials to alert the public to, and prosecute perpetrators of a variety of fraudulent scams being circulated in an attempt to profit from public fears of COVID-19 Coronavirus contamination.

The list of fraudulent schemes is, perhaps, surprisingly extensive. So Royal Examiner will list them here with a link to the entire press release from the Western and Eastern Districts of the U.S. Attorneys Office describing the joint Federal-State efforts to punish those attempting to profit from this worldwide pandemic health crisis.

The release notes that if you believe you have been a victim of fraud, or need more information about COVID-19, “please visit: https://www.justice.gov/usao-wdva/covid-19-fraud”

Reports indicate the death rate from the COVID-19 strain of Coronavirus has spiked markedly, accelerating faster than any other epidemic this century. On March 18, 973 people died worldwide, more than all who died from the disease in the month of January. Graphic CDC website

Some examples of coronavirus and COVID-19 scams 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. These promotions are often styled as “research reports,” make predictions of a specific “target price,” and relate to microcap stocks or low-priced stocks issued by the smallest of companies with limited publicly available information.

• Price Gouging scams: Individuals and businesses may sell essential goods, like hand sanitizer, for significantly higher prices than in a non-emergency setting. It is legally considered price gouging when the price of one of these products increases more than 20 percent of its price one week prior to an emergency declaration from the Commonwealth of Virginia.

Go to this linked story for the full text of Virginia’s U.S. Attorney’s Offices’ Fraud Task Force release:

Federal and State officials launch Virginia coronavirus fraud task force