From January 2020 to October 2021, over 269,000 Americans reported fraud directly linked to Covid-19 scams, resulting in losses exceeding $598 million. On average, victims lost around $392 each, with the elderly suffering losses of over $1,000 per person. Although the frequency of these scams is decreasing, many Americans remain vulnerable. Here’s what you need to know to protect yourself.
Types of Covid Scams
1. Online Shopping Scams
- How They Work: Scammers have exploited the increase in online shopping during the pandemic. They create fraudulent ads for high-demand items like hand sanitizers, masks, or vaccines, luring people to websites that promise these products. Once the payment is made, victims often receive nothing, and the websites disappear, making refunds impossible.
- Prevalence: Reports indicate that the largest number of fraud complaints related to these scams peaked at about 57,000 in 2020.
2. Price Gouging
- How It Happened: Early in the pandemic, some companies inflated prices on essential items such as hand sanitizers, masks, and gloves. This practice, known as price gouging, took advantage of the high demand and low supply during the initial outbreak.
- Impact: This led to panic buying and hoarding, exacerbating the problem and causing significant frustration and financial strain for consumers.
3. Other Covid-Related Scams
- Categories Affected: Complaints also surged in various areas including travel, entertainment, and ticketed activities. Scammers took advantage of the pandemic’s disruptions to exploit consumers in these sectors.
What to Look Out For
1. Verify Websites and Links
- Check Legitimacy: Always ensure that websites are legitimate before making a purchase. Look for contact information and customer service details. Be wary of websites with poor grammar or spelling, as these can be signs of fraud.
- Use Transparency Tools: Utilize tools like Google’s Transparency Report to check if a website is safe. This can help you avoid sites that have been flagged for malicious activity.
2. Be Skeptical of Too-Good-to-Be-True Deals
- Scrutinize Offers: If a deal sounds too good to be true, it probably is. Scammers often use enticing offers to lure unsuspecting victims. Compare prices with other reputable sources to gauge if the offer is realistic.
3. Look for Reviews and Ratings
- Research Before Buying: Read reviews from other customers and check ratings on third-party review sites. Authentic feedback can provide insight into the legitimacy of the seller and the quality of their products.
4. Protect Your Financial Information
- Safeguard Your Data: Be cautious about sharing your financial information online. Ensure that the website uses secure encryption methods (look for HTTPS in the URL) to protect your data from being intercepted by scammers.
Conclusion
The Covid-19 pandemic has created new opportunities for scammers to exploit financial vulnerabilities. Staying vigilant and informed is crucial to protecting yourself from these scams. By verifying websites, being cautious with deals, and safeguarding your financial information, you can reduce the risk of falling victim to fraud. As online shopping remains a vital part of daily life, taking these precautions will help ensure that your finances stay secure.