Apparently, scammers are hard at work trying to exploit the COVID-19 pandemic. In the last couple of weeks, multiple agencies issued alerts about a number of fraud schemes related to the COVID-19 pandemic, and, in particular to at-home test kits and vaccines.
On March 20, 2020, in response to advertisements for direct-to-consumer (“DTC”) COVID-19 testing, the Food and Drug Administration issued an alert confirming that there are currently no FDA-approved DTC test kits for the coronavirus. The FDA also noted that “[f]raudulent health claims, tests and products can pose serious health risks [by] keep[ing] some patients from seeking care or delay[ing] necessary medical treatment.” The FDA also detailed some of the steps they are taking to protect consumers from bad actors, including issuing warning letters, seizures or injunctions; and, increasing enforcement at ports of entry.
On March 22, 2020, the Department of Justice (“DOJ”) filed an action seeking a temporary restraining order for a website which advertised World Health Organization COVID-19 vaccine kits for a $4.95 shipping cost, which was payable by entering credit card information on the website. The DOJ notes that “there are currently no legitimate COVID-19 vaccines and the WHO is not distributing any such vaccine.” The DOJ charged the operators of the website with wire fraud, and notes that they will continue to investigate the website and its operators.
Following that, the Department of Health and Human Services (“HHS”) Office of Inspector General (“OIG”) published a Fraud Alert on March 23, 2020, about a scam targeting Medicare beneficiaries for the sale of fake COVID-19 test kits. The scammers contact Medicare beneficiaries through telemarketing calls and social media platforms, and request Medicare numbers, as well as other personal information. Some beneficiaries were even contacted through door-to-door visits. HHS notes that these services are “unapproved and illegitimate,” and that the information collected can be used to fraudulently bill Medicare and commit medical identity theft.
In its press release, the DOJ noted that Attorney General William Barr recently directed the DOJ to “prioritize the detection, investigation, and prosecution of illegal conduct related to the pandemic.” Assistant Attorney General Jody Hunt added “[w]e will use every resource at the government’s disposal to act quickly to shut down these most despicable of scammers, whether they are defrauding consumers, committing identity theft, or delivering malware.”
The DOJ press release also provided a number of recommendations that Americans can take to protect themselves from scams, including being wary of unsolicited emails offering treatment for COVID-19, and making sure that computer anti-malware and anti-virus software is operating and up to date. The entire list of recommendations can be found here.