COVID-19 scams explained

COVID-19 scams are scams whose cover story primarily relies on the existence of the COVID-19 pandemic. They have been reported in multiple countries, primarily the United States, Canada and the United Kingdom.

Within the United Kingdom there were many instances of companies contracted to provide COVID-19 testing kits and personal protective equipment (PPE), when the companies had direct ties to those in the UK parliament.

Initiation

COVID-19 scams are initiated in a variety of ways, such as by robocalls, emails, fake blog and social media posts[1] and text messaging.[2] Researchers found that fear of COVID-19 and anxiety increased the success of phishing scams.[3]

Types of scams

Benefit/grant scams

In this variation of COVID-19 scams, the fraudster claims that the victim is eligible for a COVID-19 benefit payment. This scam is a derivative of the advance-fee scam, where the scammer will ask the victim for a small payment in return for the 'benefit'. The scammer will then ask for further payments under the guise of problems, until the victim refuses to pay any further.[4] [5] [6] [7] [8]

Authority impersonation scams

The United Nations WHO has issued a warning that fraudsters posing as employees of the WHO were attempting to gain personal information through phishing emails and fake help lines.[9]

COVID-19 vaccination scams

In this variation, the fraudster will offer to sell the victim a 'COVID-19 vaccine' or treatment. Victims who fall for this scam reveal their personal information and payment information to the scammer. In one reported incident, victims in the UK were sent a text message purporting to be from the National Health Service which claimed that they were now eligible to receive a COVID-19 vaccine, but needed to fill their personal details into an online phishing form to book a place on the program. Information lost by the victims included their debit card information, which was then used to withdraw funds from the victim's bank account. COVID-19 vaccination scams have been reported in various countries including the United Kingdom,[10] United States[11] and Singapore.[12] [13] [14] [15] [16] [17]

COVID-19 testing scams

In this variation of COVID-19 scams, the fraudster claims they are authorized testing site that could offer COVID-19 test. But it require people to offer their health-related information. US department of Health and Human Services sent fraud alert to the public about fraud schemes.[18]

COVID-19 related stock scams

In the United States, victims were persuaded to buy stocks in companies which were claimed to be about to release a 'miracle cure' for COVID-19 through posts in Facebook.[19] The Independent reported that online adverts claimed to sell "vaccine bonds" purportedly linked to the US drug company and COVID-19 vaccine manufacturer Pfizer, which were sold with a minimum of US$10,000 investment. Pfizer confirmed it had no links to these bonds. [20]

As of mid-December 2020, the U.S. Securities and Exchange Commission has suspended trading in 36 companies which claimed to have access to COVID-19 related materials such as testing kits and treatments.

United Kingdom Fraud

The first published incident was in May 2020, where a healthcare firm was contracted to produce COVID-19 testing kits, however there was no competitive process to the contract and the healthcare firm hired a Conservative MP Owen Paterson as a consultant.[21] Subsequent contracts worth £1.7 billion to have been handed out without due process, prioritising those with connections within the government.[22]

Further issues appeared as there were issues with some of the masks purchased, leading to the removal of fifty million masks, a £252 million contract, as they did not meet the health standards provided by the NHS. In December 2020, a company was found to have provided £122 million worth of gowns that weren't used due to the slow approval process, which was hampered due to investigations into the companies origins, as it had been formed 6 weeks prior to the contract.

Losses

According to the Federal Trade Commission, from the start of the COVID-19 pandemic to April 30, 2020, US$13.44M was lost in total due to coronavirus fraud.[23]

See also

Notes and References

  1. News: Bellon. Tina. 2021-01-05. A COVID-19 shot for $150? Online scams surge as slow vaccine rollout frustrates. en. Reuters. 2021-01-14.
  2. Web site: Brown. Aaron. January 1, 2021. Make sure everyone you know is aware of this dangerous NHS COVID-19 scam. January 1, 2021. Express.co.uk. en. December 31, 2020. https://web.archive.org/web/20201231191251/https://www.express.co.uk/life-style/science-technology/1378158/NHS-Covid-19-Vaccination-Vaccine-Appointment-Pfizer-BioNTech-Text-Scam-How-To-Avoid. live.
  3. Abroshan . Hossein . Devos . Jan . Poels . Geert . Laermans . Eric . 2021 . COVID-19 and Phishing: Effects of Human Emotions, Behaviour, and Demographics on the Success of Phishing Attempts During the Pandemic . IEEE Access . 9. 121916–121929 . 10.1109/ACCESS.2021.3109091 . 2021IEEEA...9l1916A . 237473869 . free . 1854/LU-8720798 . free .
  4. Web site: 4 Covid-19 scams you should look out for right now. 2021-01-14. Salisbury Journal. January 10, 2021 . en. January 11, 2021. https://web.archive.org/web/20210111180357/https://www.salisburyjournal.co.uk/news/19000639.4-covid-19-scams-look-right-now/. live.
  5. Web site: COVID-19: Warning over texts offering fake 'third lockdown' HMRC grant. 2021-01-14. Sky News. en. January 12, 2021. https://web.archive.org/web/20210112095929/https://news.sky.com/story/covid-19-warning-over-scam-texts-offering-fake-third-lockdown-hmrc-grant-12179701. live.
  6. Web site: Beware fraud and scams during Covid-19 pandemic fraud. 2021-01-14. www.nationalcrimeagency.gov.uk. en-gb. January 18, 2021. https://web.archive.org/web/20210118145021/https://nationalcrimeagency.gov.uk/news/fraud-scams-covid19. live.
  7. Web site: Bianca. Kerjan. 2021-01-13. Avoiding COVID-19 vaccine scams. 2021-01-14. KRDO. en-US. January 13, 2021. https://web.archive.org/web/20210113224415/https://krdo.com/news/top-stories/2021/01/13/avoiding-covid-19-vaccine-scams/. live.
  8. Web site: 2021-01-09. Public warned against Covid-19 vaccine scams in UK. 2021-01-14. Hindustan Times. en. January 9, 2021. https://web.archive.org/web/20210109141816/https://www.hindustantimes.com/world-news/public-warned-against-covid-19-vaccine-scams-in-uk-101610201397521.html. live.
  9. Web site: UN health agency warns against coronavirus COVID-19 criminal scams. February 29, 2020. February 12, 2021. March 8, 2020. https://web.archive.org/web/20200308013146/https://news.un.org/en/story/2020/02/1058381. live.
  10. News: 2021-01-06. Covid-19: Police warning over vaccine scam messages. en-GB. BBC News. 2021-01-14. January 14, 2021. https://web.archive.org/web/20210114091507/https://www.bbc.com/news/uk-england-55560604. live.
  11. Web site: Skiba. Katherine. Vaccine Scams Rise Amid Nationwide Roll-Out. 2021-01-14. AARP. english. January 14, 2021. https://web.archive.org/web/20210114140100/https://www.aarp.org/money/scams-fraud/info-2021/vaccine-scams-growing-problem/. live.
  12. Web site: Iau. Jean. 2021-01-08. MOH warns of SMS scams as Singapore begins Covid-19 vaccination drive. live. https://web.archive.org/web/20210110023838/https://www.straitstimes.com/singapore/courts-crime/moh-warns-of-sms-scams-as-singapore-begins-covid-19-vaccination-drive. January 10, 2021. 2021-01-14. The Straits Times. en.
  13. Web site: Kharpal. Arjun. 2021-01-13. Scammers are claiming to sell Covid-19 vaccines on the dark web for up to $1,000 worth of bitcoin. 2021-01-14. CNBC. en. January 14, 2021. https://web.archive.org/web/20210114164130/https://www.cnbc.com/2021/01/13/covid-19-vaccines-scammers-claim-to-sell-doses-on-dark-web-for-bitcoin.html. live.
  14. News: Meadows. Sam. 2021-01-08. Warnings over coronavirus vaccine scams used to steal personal data. en-GB. The Telegraph. 2021-01-14. 0307-1235. January 15, 2021. https://web.archive.org/web/20210115071153/https://www.telegraph.co.uk/news/2021/01/08/warnings-coronavirus-vaccine-scams-used-steal-personal-data/. live.
  15. Web site: Health experts warn of potential Covid-19 vaccine scam phone calls. 2021-01-14. NBC News. December 16, 2020 . en. January 19, 2021. https://web.archive.org/web/20210119125654/https://www.nbcnews.com/business/consumer/health-experts-warn-potential-covid-19-vaccine-scam-phone-calls-n1251397. live.
  16. Web site: 5 Things to Know about COVID-19 Vaccine Scams. February 12, 2021. February 9, 2021. https://web.archive.org/web/20210209183610/https://www.aarp.org/money/scams-fraud/info-2020/coronavirus-vaccine-scams.html. live.
  17. Web site: Fraud Alert: COVID-19 Scams. December 24, 2020. February 12, 2021. February 10, 2021. https://web.archive.org/web/20210210223037/https://www.oig.hhs.gov/coronavirus/fraud-alert-covid19.asp. live.
  18. Web site: 2020-12-24 . Fraud Alert: COVID-19 Scams . 2022-11-03 . Office of Inspector General Government Oversight U.S. Department of Health and Human Services . en.
  19. Web site: Tompor. Susan. Rising cases of COVID-19 stock scams threaten investors. January 1, 2021. USA TODAY. en-US. January 1, 2021. https://web.archive.org/web/20210101025626/https://www.usatoday.com/story/money/investing/2020/12/31/covid-19-stock-scams-threaten-investors/4087677001/. live.
  20. Web site: 2021-01-13. Scammers target savers with fake Covid-19 'vaccine bonds', claiming they are backed by Pfizer. 2021-01-14. The Independent. en. January 14, 2021. https://web.archive.org/web/20210114115519/https://www.independent.co.uk/news/business/covid-19-vaccine-bonds-investment-scam-pfizer-b1786914.html. live.
  21. News: Neate . Rupert . Garside . Juliette . Lawrence . Felicity . Evans . Rob . 2020-05-11 . Healthcare firm advised by Owen Paterson won £133m coronavirus testing contract unopposed . 2024-01-17 . The Guardian . en-GB . 0261-3077.
  22. Web site: UK government paid £1.7bn to private groups for coronavirus contracts . 2024-01-17 . www.ft.com.
  23. https://www.usatoday.com/story/tech/columnist/2020/04/30/10-online-covid-19-scams-consumers-falling-right-now/3052342001/ USA Today - 10 COVID-19 scams spreading right now that people are falling for

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