COVID-19 and Financial Scams, Fraud in 2021

COVID-19 and Financial Scams, Fraud and Misinformation: What You Need to Know:

As governments around the world try to respond to the ongoing COVID-19 pandemic, financial scammers are expanding their scams.

Last week, the World Health Organization (WHO) described COVID-19 as a global pandemic. The Trump administration has declared a national emergency regarding the virus in the United States. And now international law enforcement agencies and US regulators have released their own statements about cybercrime related to the outbreak.

This scam about financial fraud COVID-19 is spreading fast. The International Criminal Police Organization (INTERPOL) has released a statement on COVID-19 and financial crimes, along with several key announcements from the Financial Services Committee, the Securities and Exchange Commission (SEC), and the Financial Sector Regulatory Authority (FINRA), AARP. . . And more.

The warnings from all agencies are clear: Financial scammers are using the COVID-19 outbreak as an opportunity for scammers to send inaccurate information to the market. Because? Take advantage of the fear of a pandemic and manipulate innocent victims into divorcing their money.

Investments and product fraud

Investment fraud, miracle cures, and fraudulent GoFundMe donation accounts abound, and consumers should be wary of investment fraud and COVID-19-related fraudulent products, the US federal government says.

There are several categories of scams, including:

• Phishing emails with malicious links claiming to be from the Centers for Disease Control & Prevention (CDC) or the WHO;

• Investment fraud related to COVID-19, including so-called ‘pump and shower’ schemes;

• Miraculous products that claim to prevent, detect or cure COVID-19;

• Fraud in online purchases and counterfeit products linked to viruses; and fraudulent donations or fundraising.

The Federal Trade Commission (FTC) and the Food and Drug Administration (FDA) have issued a joint warning about fraudulent product schemes designed to sell counterfeit drugs related to COVID-19. These products are unapproved drugs that pose significant health risks to patients and violate federal law, the FTC and FDA said in a press release.

Warnings from the Attorney General

The US Attorney General’s offices have also issued important warnings about COVID-19 scams, including price fraud, phishing scams, and fraudulent products. New York Attorney General Letitia James, for example, recently sent a letter of resignation to radio host Alex Jones and ordered convicted television evangelist and collaborator Jim Bakker to stop marketing or accuse the public of misleading the items sold. . will cure COVID-19. There is currently no FDA-approved vaccine to prevent the disease or treatment to cure it, wrote AG James. And the WHO also said there is no specific drug to prevent or cure this disease.

The state of Missouri wanted to sue Baker for violating state and federal advertising laws and required him and his manufacturing company to stop all advertising or sale of products as a treatment for COVID-19.

Other government officials also urged the public to pay attention. The public should think before clicking an unsolicited link or email from an organization calling it a coronavirus, Arizona Attorney General Mark Brnovich said. If the public is concerned about the coronavirus, they should consult reliable sources of information.

Communicate with your bank

How can consumers not become victims of these crimes? Gabe Hidalgo, CEO of K2Intelligence FIN, has some important tips.

First of all, never click on emails from sources you don’t know, especially financial institutions. When it comes to scams, scammers are always looking for a way to stay one step ahead, especially in the banking sector, Hidalgo said. The scammers are taking advantage of people’s fears and insecurities, with COVID-19 cultivating exactly the fear they are looking for.

Hidalgo said it urges consumers to pay attention to all communications with or from their banking institution. Banks follow strict rules and protocols, such as not asking consumers to obtain personally identifiable information

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