Justice Department Files First Enforcement Action Against COVID-19 Fraud
The Department of Justice (DOJ) announced on Sunday that it has issued its first action in federal court to combat fraud related to the coronavirus. The DOJ previously announced it is prioritizing the detection, investigation, and prosecution of illegal conduct related to the pandemic.
According to a DOJ release, the operators of the website “coronavirusmedicalkit.com” were engaging in a wire fraud scheme seeking to profit from the confusion and widespread fear surrounding COVID-19. The website claimed to offer consumers access to World Health Organization (WHO) vaccine kits in exchange for a shipping charge of $4.95. Consumers would pay by entering their credit card information on the website.
In reality, there is currently no legitimate COVID-19 vaccine and the WHO is not distributing any such vaccine. 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.
“At a time when we face such unprecedented challenges with the COVID-19 crisis, Americans are understandably desperate to find solutions to keep their families safe and healthy,” said Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office. “Fraudsters who seek to profit from their fear and uncertainty, by selling bogus vaccines or cures, not only steal limited resources from our communities, they pose an even greater danger by spreading misinformation and creating confusion. During this difficult time, protecting our communities from these reprehensible fraud schemes will remain one of the FBI’s highest priorities."
In the release, the DOJ offered recommendations to help people protect themselves against emerging scams related to COVID-19:
Independently verify the identity of any company, charity, or individual that contacts you regarding COVID-19.
Check the websites and email addresses offering information, products, or services related to COVID-19. Be aware that scammers often employ addresses that differ only slightly from those belonging to the entities they are impersonating. For example, they might use “cdc.com” or “cdc.org” instead of “cdc.gov.”
Be wary of unsolicited emails offering information, supplies, or treatment for COVID-19 or requesting your personal information for medical purposes. Legitimate health authorities will not contact the general public this way.
Do not click on links or open email attachments from unknown or unverified sources. Doing so could download a virus onto your computer or device.
Make sure the anti-malware and anti-virus software on your computer is operating and up to date.
Ignore offers for a COVID-19 vaccine, cure, or treatment. Remember, if a vaccine becomes available, you won’t hear about it for the first time through an email, online ad, or unsolicited sales pitch.
Check online reviews of any company offering COVID-19 products or supplies. Avoid companies whose customers have complained about not receiving items.
Research any charities or crowdfunding sites soliciting donations in connection with COVID-19 before giving any donation. Remember, an organization may not be legitimate even if it uses words like “CDC” or “government” in its name or has reputable looking seals or logos on its materials. For online resources on donating wisely, visit the Federal Trade Commission (FTC) website.
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.
Be cautious of “investment opportunities” tied to COVID-19, especially those based on claims that a small company’s products or services can help stop the virus. If you decide to invest, carefully research the investment beforehand. For information on how to avoid investment fraud, visit the U.S. Securities and Exchange Commission (SEC) website.