Since the onset of the Covid-19 pandemic, fraudsters have exploited the situation to scam millions of unsuspecting individuals. From January 2020 to October 2021, over 269,000 Americans reported being victims of Covid-related scams, resulting in a staggering $598 million in losses. With an average loss of $392 per victim, and the elderly suffering even more significant financial hits, it’s clear that these scams have had a devastating impact. Although the frequency of these scams has decreased, many people remain vulnerable.
The Persistent Threat of Covid-19 Scams
Even as the pandemic’s intensity has lessened, certain types of scams continue to thrive, particularly those linked to online shopping. Fraudsters have capitalized on the surge in e-commerce by creating fake websites and running deceptive ads, tricking consumers into purchasing items that never arrive. These operations can often go unnoticed for long periods, allowing scammers to swindle large sums before authorities intervene. In 2020 alone, there were about 57,000 complaints related to these types of frauds.
How These Scams Operate
The pandemic prompted a dramatic increase in online shopping due to widespread store closures and the need to minimize physical contact. Scammers seized this opportunity by setting up fraudulent websites that advertise in-demand products at attractive prices. These sites often look legitimate, but after buyers place their orders, they receive nothing in return. When authorities trace these fraudulent claims, they often find that the websites are non-existent or untraceable, leaving victims with no way to recover their money.
Other Covid-Related Frauds
Price gouging became another major issue during the pandemic. As demand surged for essential items like hand sanitizers, masks, and gloves, some companies began inflating prices, leading to widespread reports of overcharging. Panic buying and hoarding exacerbated the situation, causing shortages and further inflating prices. Additionally, disruptions in global supply chains have led to inventory shortages, affecting nearly everyone. Local and state agencies also received numerous complaints about fraud related to travel, entertainment, and ticketed events.
How to Protect Yourself from Covid-19 Scams
The financial strain caused by the pandemic has made it more important than ever to be vigilant against scams. Here are some tips to safeguard your finances:
- Verify Online Purchases: Before buying anything online, make sure the website is legitimate. Check that the company is verified and has the necessary legal documentation. Look for reviews from other customers, and be cautious of deals that seem too good to be true.
- Check the URL: Scammers often create websites with URLs that closely resemble those of legitimate companies. Double-check the web address for any unusual spelling or characters that could indicate a fake site.
- Use Google’s Transparency Report: This tool allows you to check the legitimacy of websites before making a purchase. It’s an easy way to ensure that your money is going to a legitimate business.
- Stay Informed: Keep up with the latest reports on Covid-19 scams and fraudulent activities. Being aware of the tactics scammers use can help you avoid falling victim to their schemes.
Online shopping has become a necessity for many during the pandemic, but it’s essential to remain cautious. By staying alert and taking steps to verify the legitimacy of the businesses you deal with, you can protect both your health and your finances.