Coronavirus Scams

Under the Affordable Care Act, many states expanded Medicaid eligibility so that the number of people covered by that low-income health insurance program surged. Then, in 2020 the COVID-19 pandemic came along.

As a result, the U.S. Government required states to keep people enrolled in Medicaid so they didn’t lose their insurance. Now that the pandemic has ended, people eligible for Medicaid have to re-enroll in their state’s program or find new insurance if they are no longer eligible.

Where large-scale change and uncertainty exist, it’s a perfect environment for scammers. The Federal Trade Commission (FTC) warns there are several ways the bad guys are attempting to exploit this.

If you have been on Medicaid or are now eligible, here’s information that will protect you from growing Medicaid scams:

Here’s what to know

• Medicaid won’t charge you to renew or enroll. Your state Medicaid agency may call, text, or send an email with information about enrolling in the program. However, the real Medicaid program won’t ask for money or personal information like your credit card or bank account number. Learn more about eligibility for Medicaid in your state at Medicaid.gov. 

• Visit HealthCare.gov to compare insurance plans, coverage, and prices. HealthCare.gov lets you compare prices on health insurance plans, check your eligibility for healthcare subsidies, and begin enrollment. HealthCare.gov will ask questions about your age and income. It will not ask for your credit card or bank account number. If someone does, it’s a scam. 

• Scammers will also try to sell you medical discount plans that are not major medical. Medical discount plans charge a monthly fee for supposed discounts on some medical services or products from a list of providers. They’re not a substitute for health insurance, though some plans do give actual discounts. But others just take your money for very little in return. If you’re considering one, find out if your doctor participates in the plan. Check what coverage it gives for major events. And be sure to get the plan’s details in writing before you sign up. If anyone pressures you to sign up quickly or insists you’ll miss out on a special deal, they’re running a scam.

The FTC is trying to get ahead of these scams by arming consumers with information. You can help by spreading the word. You can start by sharing this article!

In 2022, there were over 1.1 million reports of identity theft received through the Federal Trade Commission’s (FTC) IdentityTheft.gov website. Security experts say the risk of this type of fraud increased dramatically during the COVID-19 pandemic.

The threat had been building for over a decade. It steadily increased as fraudsters got their hands on more personally identifiable information (PII), allowing them to open credit accounts in unsuspecting consumers’ names.

Sara Seguin, principal advisor for Fraud & Identity Risk at Alloy, a cybersecurity firm, says the growing use of technology across the financial services industry, in the years before the pandemic, set the stage for explosive growth.

“What has happened over the course of the last 10 years is digital has become more prevalent and data is being used in so many different ways, like signing up for rewards,” Seguin told ConsumerAffairs. “So you’re giving more information even when you’re checking out. That data is being exposed and stolen through multiple data breaches.”

Phishing schemes

You may have no control over data breaches but scammers are getting your PII in other ways, through digital contacts utilizing phishing schemes. And when the pandemic hit, that method took off.

“When the pandemic occurred, a lot of firms were forced, if they didn’t already have it set up, to operate through a digital environment,” she said.

That sped up the process of putting new technologies in place faster than they would have otherwise. Sometimes, the end result was not what it would have been had it been left to a natural evolution.

Law Helie, general manager of the Consumer Banking product line at nCino, a firm providing cloud banking services, says the pandemic presented other challenges. It unleashed fraudsters’ creativity as they devised ways to fool consumers. 

Hey, we’re your bank

Using text messages they began contacting people, claiming to be from their bank, trying to trick them into providing account login information so they could take over accounts.

“Customers who in the past might have gone into their local branch or had some personal interaction were no longer doing that,” Helie told us. “They were ‘trusting’ that this email is real.”

Technology tools to authenticate text messages can help. But knowing what to look for can also help you avoid these traps. For example, Helie points out that if an email that is supposedly from your bank asks for personal information it should already have, that’s a big red flag.

“I get them every once in a while, they look convincing, I just know better,” he said.

Identity thieves have always been out there. But Seguin and Helie say the removal of face-to-face interaction with banks and other industries that store data has compounded the problem.

“Because you have to trust the technology and so many institutions are moving so quickly to try to plug those gaps, some of the end-user parts sort of fell through the cracks,“ Law said.

“It’s really exposed how easy it is to commit fraud,” Seguin added.

If you have a Skippack Medical Lab SARS-CoV-2 Antigen Rapid Test Kit on the shelf, check the label. More than 56,000 of the COVID-19 tests are being recalled because they could provide inaccurate results.

According to the U.S. Food and Drug Administration (FDA), the products were found to have been distributed without appropriate premarket clearance or approval which potentially could result in inaccurate test results due to lack of performance evaluation by the FDA.

The following styles/models/UDI have been recalled:

• Name of Product: Skippack Medical Lab SARS-CoV-2 Antigen Rapid Test Kit

• UDI: None

• Model: Cassette

• Quantity: 56,300

Products were distributed with “Skippack Medical Lab” branded Instructions for Use leaflets in three different packaging boxes identified below:

• Purple and white box under “Skippack Medical Lab” brand: (see image below)

• Green and white box under “DiagnosUS” brand: (see image below)

• White box without brand name: (see image below)

Universal Meditech Inc. voluntarily recalled the product after becoming aware of the violative distribution notified by the FDA. To date, there has not been any reported injury.

What to do

Consumers who have Skippack Medical Lab SARS-CoV-2 Antigen Rapid Test Kits should stop using the device immediately and contact the distributor for product return.

Recalled products were manufactured from October 2021 to December 2021 and distributed in January 2022.

Consumers with questions may contact the legal attorney of the company via telephone at +1(702)871-9888 between the hours of 9 AM and 5 PM, P.S.T. Consumers may also contact the legal attorney of the company via e-mail at m@linlawgroup.com.

The Better Business Bureau is warning parents of a new scam connected to streaming local school sports games. With many high schools across the country transitioning to streaming games to make them more accessible during the COVID-19 pandemic, more people are tuning in to watch their kids, grandkids, friends, and family members play. 

While this should be a way for friends and family to show their support and team spirit, it also has become a new avenue for scammers. The risks are coming primarily through Twitter, where schools may post links to stream sports games.

Scammers will post fake links to streaming services that will ask people to provide sensitive information – like Social Security numbers and credit card information – to watch the game. 

It’s easy for potential victims to start clicking through these fake streaming links, as many of them will tag the names of the schools. However, the links never lead to the games, and consumers are forced to pay before they realize they won’t be able to reach a streaming site. On top of that, any information provided on these sites can be compromised and used for future scams. 

How to steer clear of these scams

With back-to-school season underway and the fall sports season kicking off, it’s important for everyone to be vigilant in the face of these scams. The Better Business Bureau urges consumers to be mindful when streaming any games online. 

The best way to avoid these scams is to check with your specific school on whether or not the games will be streamed and what the best way is to access the stream. Twitter accounts that have low follower accounts or only post links to streaming sites are also red flags to look out for.

Taking a few extra minutes to research the site before clicking through may be time-consuming, but ultimately worth it to protect consumers’ identities and personal information. 

Consumers can monitor active scams and report scams through the Better Business Bureau here. 

Back in April, federal officials at the U.S. Department of Education extended the student loan payment pause that was brought on by the COVID-19 pandemic to August 31, 2022. The announcement was welcome news to eligible consumers who needed more time before resuming their payments. Unfortunately, scammers have been quick to capitalize on the situation.

The Federal Trade Commission (FTC) announced today that criminals have been targeting consumers with fake student loan forgiveness offers in an attempt to steal their information. In some cases, these fraudsters may offer to enter victims into a loan forgiveness program that they don’t qualify for. In other instances, they might claim to be able to completely eliminate a borrower’s debt by disputing the charges.

The agency says consumers shouldn’t heed these too-good-to-be-true offers and that they should remain skeptical about messages that come from non-official sources.

“If there is eventually a broader federal student loan debt forgiveness plan, the official word will come from the Department of Education, not random calls, texts, emails, or social media messages,” the agency said. 

How to protect yourself

The FTC says there are some things that people should know about student loan forgiveness. They include:

• There are specific federal loan forgiveness programs. The agency says consumers can take advantage of Public Service Loan Forgiveness (PSLF) and the Teacher Loan Forgiveness programs if they are eligible. They can even try to join the Public Service Loan Forgiveness limited waiver program that is going on right now, but it has a deadline of October 31, 2022. Those who have questions about what loan forgiveness program they qualify for should contact their loan servicer or the Department of Education directly.

• Don’t share your FSA ID. Scammers are always looking for information, so they might claim that they need your FSA ID to help you with your loan forgiveness goals. However, the FTC says you should never share your FSA ID with anyone because the information can be used to get into your account and steal your identity.

• You don’t need to pay for help. The FTC points out that there are plenty of free options that consumers can utilize to get help with loan forgiveness. If you have questions about your loans or need more information about how you can resume payments in August, the agency says to contact your loan servicer.

Valentines Day is over, but law enforcement officials and consumer advocates say romance scams are still prevalent. In fact, many officials trace a large increase in these schemes to the start of the COVID-19 pandemic.

The method of choice among these predators is to use one or more dating apps to search for victims. They create fake profiles and establish an online relationship before moving in for a payoff.

In many cases, the scammer will tell their victim that they have had a severe financial setback. Often, their victim volunteers to send money.

Huge losses in 2021

According to Statista, there were an estimated 44.2 million users of online dating services in the United States in 2020 – 26.6 million of which were on smartphone dating apps. The Federal Trade Commission (FTC) reports that the 2021 losses linked to romance scams accounted for more than half a billion dollars, and the prevalence of romance scammers increased nearly 80% compared to 2020.

Patricia, of Harrison, Ark., tells us she had a close call with a romance scammer who asked her to cash a check and send the proceeds back in the form of an Apple gift card – a sure sign of a scam.

“But I've read too many articles on this subject so I didn't send them a dime nor gift cards,” Patricia wrote in a review of US Search, which she credits with helping her avoid the trap. 

Devin, of Upper Darby, Pa., reported a similar experience on a dating site called Plenty Of Fish (POF). She noticed that a lot of the scammers pretended to be lonely U.S. soldiers.

“Victims may encounter these romance scammers on a legitimate dating website or social media platform, but they are not U.S. soldiers,” Devin wrote in a ConsumerAffairs review. “To perpetrate this scam, the scammers take on the online persona of a current or former U.S. Soldier, and then, using photographs of a Soldier from the internet, build a false identity to begin prowling the web for victims.”

Red flags

Florida Attorney General Ashley Moody has warned residents of her state to be careful when using online dating apps. She says there are several ways people can protect themselves. One way is to be mindful of common tactics that romance scammers use.

For example, be wary of anyone trying to establish a bond very quickly, even proposing marriage not long into a relationship. Scammers will also try to move the conversation to a direct-messaging app while revealing very little about themselves.

The biggest red flag, of course, is an appeal for money. Scammers may wait several weeks into the relationship before springing this on their victim. By then, Moody says the victim may be especially vulnerable.

“It is pitiful that scammers prey on people searching for companionship – exploiting their emotions all in an effort to steal their money,” Moody said. “Be wary anytime you are interacting with someone online, to make sure that the person you are talking to is actually who they say they are and not a scammer."

The Federal Trade Commission (FTC) wants consumers to know that COVID-19 test kits are in such short supply that scammers are jumping in the fray to “help” with shortages. Fraudsters are going as far as creating fake COVID-19 testing sites to market fake and unauthorized at-home testing kits. Complicating matters, the FTC says, is that those fake websites are so authentic-looking that they’re hard to spot. 

“They look real, with legitimate-looking signs, tents, hazmat suits, and realistic-looking tests,” said Ari Lazarus, a consumer education specialist with the FTC. “And the damage these fake testing sites can cause is very real.”

The scammers are luring in victims by hawking “free” test kits, but what they’re really after is personal information like Social Security numbers, credit card information, and other health data. All of that information can be leveraged for identity theft or to run up a person’s credit card bill. 

“Worst of all, they’re not giving people the help they need to stay healthy,” Lazarus said.

What to be on the lookout for

The FTC cautions consumers that there are four things to keep in mind when looking into testing sites. Here are the things the agency says to do:

Get a referral. Instead of trying to figure out whether a site is legitimate on your own, the FTC suggests that you go somewhere you have been referred to by your doctor or state or local health department. In short, don’t trust a random testing site you stumble upon while online.

Check the source. Did you hear about a new testing site on a neighborhood social media group or email listserv? That “neighbor” could actually be a scammer. See if the site is also listed on your state or local health department’s website.

Check with officials to see if a site is legitimate. Again, rather than going it alone and playing detective, the FTC says to check with your local police or sheriff’s office to find out if a testing site is legitimate. If the authorities determine that a testing site is fake, they can make an effort to shut it down and keep others from getting conned. 

Dispute scam charges. If you think that you may have already been scammed and shared your credit card information, the FTC says to get in front of the situation by disputing the charge.

COVID-19 tests of all types are in demand at the start of 2022 as the Omicron variant sweeps across the U.S. In some regions, supplies of tests are running low. In other places, labs are struggling to get results.

In some testing venues, there’s also confusion. Ingrid, of Williamstown, Mass., tells us she encountered a delay in getting her test results from Walgreens and had a hard time getting answers.

“Over ten days now and no test results,” Ingrid wrote in a ConsumerAffairs review. “Walgreens claims a 24-hour turnaround time--their partner says that is not true.”

Opportunity for scammers

Because of obstacles Ingrid and many other consumers are facing, the U.S. Food and Drug Administration (FDA) is worried that scammers will enter the vacuum to peddle all sorts of plentiful – but fake – COVID-19 tests.

“Some people and companies are trying to profit from this pandemic by selling unproven and illegally marketed products that make false claims,” the FDA said in a consumer update.

In addition to COVID-19 tests that are unproven and unreliable, the agency is cautioning consumers to be on the lookout for alleged treatments and cures for the virus. Officials say these bogus products began appearing early in the pandemic but may become more prevalent during the current surge in new cases.

To date, the FDA has granted emergency use authorization to only three vaccines. The mRNA vaccines produced by Pfizer/BioNTech and Moderna require two shots, along with a recommended booster. The Johnson & Johnson vaccine requires a single shot, and a booster two months later is highly recommended.

You can’t buy real treatments from a website

The FDA has also approved several drugs and antibody cocktails to treat the coronavirus, but they all must be prescribed and administered by a health care provider. They are not available for purchase from a website.

The FDA said it continues to work with vaccine and drug manufacturers, developers, and researchers to help facilitate the development and availability of medical products – such as additional vaccines, antibodies, and medicines – to prevent or treat COVID-19.

Fraudulent COVID-19 products can be packaged and presented in many different ways. They might take the form of dietary supplements and other foods, as well as products claiming to be tests, drugs, medical devices, or vaccines. 

So far, the FDA has been able to remove dozens of misleading or counterfeit products from store shelves and from websites. The agency will continue to monitor social media platforms and online marketplaces to prevent the promotion and sale of fraudulent COVID-19 products.

If you spot what looks like an unapproved test or product, the FDA would like to hear from you. You can contact the agency here.

Cybercriminals are still using the COVID-19 pandemic to scam consumers out of their money, according to recent research from cybercrime intelligence provider Intel 471. While fake COVID-19 vaccine certificates aren't exactly a new con, the researchers found that it continues to multiply and grow. 

The firm says hackers are continuing to create counterfeit paper versions of the United States’ Centers for Disease Control and Prevention’s (CDC) vaccination card. Some bad actors are also copying the digital and paper versions of the European Union’s vaccine passport. 

Researchers say they found one actor who was hawking several advertisements for fake vaccination cards that falsely claim the available vaccines are “poisonous” and “trying to destroy mankind.”

Advertisements for vaccine

Some scammers are even trying to sell actual vaccine doses -- or at least what they purport to be actual vaccine doses.

Intel 471 found one advertisement that claimed to be able to send potential buyers numerous different vaccines currently on the market: AstraZeneca, Johnson & Johnson, Moderna, and Pfizer. Once a buyer is caught in that snare, they’re routed to visit a particular website set up for sales that can steal their information. Much worse is the potential health ramification.

“[These actors] undermine the pharmaceutical companies’ efforts to distribute the vaccine, putting people in danger since they have very little recourse to determine if the vaccines are legitimate,” Intel 471 said.

They’ll stop at nothing

Cybercrime is up 600% as a result of the COVID-19 pandemic, and the researchers say that trend is likely to continue for as long as the pandemic stays relevant.

“The schemes show that threat actors are monetizing the fear and misinformation in order to stimulate the market for fake COVID certificates. This presents a danger to people because they very likely have never purchased anything illicit, whether it's on the cybercrime underground or on other social media platforms,” Greg Otto, Researcher at Intel 471, told ConsumerAffairs.

“There is an extreme ‘buyer beware’ here because prospective customers are dealing with criminals who look to rip people off, not to mention the litany of laws that someone could run afoul of if a purchase actually results in an exchange of the actual advertised ‘products.’" 

It appears that the con artists behind the spate of COVID-19 scams and the recent money-flipping scam have moved their game. Various federal and state agencies are warning consumers that scammers have found some new ways to fleece the public: an Amazon AirPods raffle scam and an order confirmation scam. 

The order confirmation scam

If you receive a text message from a number you don’t recognize saying you need to confirm a delivery by clicking on a link, stop right there. The scam — called “smishing” — starts with the pretense that it’s from Walmart, Costco, Target, or Amazon and that you need to confirm a recent purchase you supposedly made. 

These scam messages say a shipment confirmation will follow and, when it does, your credit card on file will be automatically charged. “The message asks you to call a phone number if you did not make the transaction in question or to report an unauthorized transaction. If you dial the number, you will likely be asked to provide your account credentials or payment information so that your account can be ‘credited,’" cautions Attorney General Chris Carr. “The scammers will then use that information to steal your money or commit identity theft. This scam can also occur via email or text message.”

Carr says consumers can avoid this scam simply by not calling the number provided or clicking on the links. You can double-down on your protection by logging in to your online account with the retailer or contacting the company through a verified telephone number to see if, in fact, there was an unauthorized charge made to your account.

The United States Postal Inspection Service reminds consumers that if the scammer’s attempt uses the Postal Service as part of the ploy, the USPS offers tools to track specific packages — but only if you choose to use them. “Customers are required to either register online, or initiate a text message, and provide a tracking number. USPS will not send customers text messages or e-mails without a customer first requesting the service with a tracking number, and it will NOT contain a link,” the agency said. “So, if you did not initiate the tracking request for a specific package directly from USPS and it contains a link: don’t click the link!”

The Amazon AirPods raffle scam

Want a free pair of AirPods? OK, but you might also get some unwanted malware along with them.

The Georgia Attorney General’s Consumer Protection Division said it’s received complaints about text messages that state they're from Amazon, claiming that the lucky recipient has won a pair of AirPods in an Amazon raffle. Supposedly, all you have to do to claim your prize is click the link in the message. 

If you click, be prepared for an avalanche of anxiety. Clicking usually loads malware onto your device or leads you to a phishing website that prompts you for personal information, such as your Amazon login and password.

Burnaby Now reports that the scam is also known as the “fitness watch text” or the “Apple Watch raffle scam.” And the Better Business Bureau (BBB) reports that another variation is a scam involving Whole Foods. 

“The scammer sent a text with a link for address and name to enter into a raffle contest of secret shopper opportunities at Whole Foods Market for 400$ a week,” reported one consumer at the BBB’s Scam Tracker website. “I responded with name and address. They sent a text saying something would be in the mail. A fake check for 1950.53$ and a single page with 'instructions' came a day later in the mail for buying an American Express gift card to send to an email with ‘shopper experiences survey’ to send as well.”

The Federal Trade Commission (FTC) says consumers are asking for trouble if they buy fake proof-of-vaccination cards or a document that falsely says their COVID-19 test results were negative.

The agency says scammers are out in force looking for suckers who need to show proof for things like getting (or keeping) a job or obtaining certain kinds of clearance, like admission to an event. 

“Know that buying fake vaccine cards, making your own, or filling in blank cards with false information is illegal and could get you fined, or even land you in jail,” the FTC’s Colleen Tressler warns.

Don’t cross these lines

Tressler says there are lines that, if crossed, can also cause other problems. She offered these tips:

• Don’t share personal information with people you don’t know. Scammers will turn the tables and sell your data or use it to commit identity theft.

• The only legitimate way to get proof that you’re vaccinated -- or that you test negative — is to GET vaccinated or to TEST negative. If you lose that proof, check with your state health department or the place you got vaccinated to find out how you might be able to get a replacement.

The FTC is asking Americans who spot a fake vaccine card to do the following:

• Report it to the Office of the Inspector General of the Department of Health and Human Services at 1-800-HHS-TIPS or oig.hhs.gov.

• File a report with the FBI.

• File a report with the FTC at ReportFraud.ftc.gov. 

“Your report can make a difference. We use reports like yours to investigate, bring law enforcement cases, and alert people about what frauds to be on the lookout for so they can protect themselves, their friends, and family,” Tressler said.

There was a big increase in pet ownership during the early months of the COVID-19 pandemic, and the demand for pet products and services has also seen an exponential increase. Not surprisingly, that’s fertile ground for scammers.

In the latest twist, the Better Business Bureau (BBB) reports that scammers are targeting pet sitters or students who might be interested in becoming a pet sitter to earn extra money. The objective is to gain sensitive personal information that can be sold on the dark web.

Look out for red flags

It works like this: an unsolicited contact is made by email. The sender claims to be a family that is moving to the area and will need pet-sitting services immediately. They provide a lot of made-up details like their name, their pet’s name, information about the family, and their job to earn trust. They also offer an above-market rate and say no in-person interview is required because you seem to be the perfect candidate. That should be a very big red flag.

Once someone agrees to take the pet sitting job, they are asked to provide details about themselves -- such as their name, address, phone number, date of birth, Social Security number, and even banking information. They are told the bank information is needed to set up direct deposit payments.

In one version of the scam, the operators may send the pet sitter a large cashier’s check with instructions to purchase supplies and wire what’s left back to the scammer. Again, that is another sizable red flag since scammers have used that method for years.

What to do

You can avoid these kinds of scams by remaining alert and recognizing red flags when they begin to wave. For starters, don’t provide any personal information to someone you don’t know.

While the scammer may say no in-person interview is required, tell them your policy is to never accept a job without one. Tell them both parties need to be sure it’s a good fit. At that point, a scammer will most likely lose interest.

If you are unsure if you are dealing with someone who truly needs your services, verify the information you have received. One way to do that is to ask to connect with them on social media. Look for the address they provided to see who actually lives there.

Finally, understand the tricks scammers use and recognize them when they appear. Someone you don’t know asking for personal information is a big red flag. An even bigger one is when you are asked to return money from an overpayment in some way that is untraceable.

For example, if you are asked to put money on gift cards and provide the numbers to someone, you are dealing with a scammer 100% of the time.