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According to the Federal Trade Commission, fraud related to the Covid pandemic cost Americans $ 382 million.
According to federal data, more than 217,000 people had filed a coronavirus-related fraud report with the agency as of Tuesday as of January 2020. The median loss was $ 330.
However, losses were higher for seniors – $ 500 for people in their 70s and $ 900 for people in their 80s.
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Criminals have used multiple ways to steal money from unsuspecting Americans, including financial aid crimes like incentive checks and unemployment benefits, fake Covid-19 treatments, and fraudulent charities.
“While people fear for their health and finances, scammers hold a field day,” Lucy Baker, a consumer protection officer with advocacy group US PIRG told CNBC.
The Consumer Financial Protection Bureau dealt with 542,300 pandemic complaints in 2020, an increase of 54% compared to 2019.
Americans began filing more than 3,000 complaints mentioning coronavirus keywords nearly every month, almost every month from April 2020, according to the Bureau, a federal agency that oversees financial wrongdoing affecting consumers.
“The pandemic is one of the most disruptive long-term events we will see in our lives,” said Dave Uejio, acting director of the CFPB. “Not surprisingly, the shock waves it sent across the planet were felt deeply in the consumer financial market.”
Credit and consumer complaints accounted for more than 58% of the total complaints, followed by complaints about direct debit (15%), credit card (7%), checks or savings (6%) and mortgages (5%). Not all of these complaints were necessarily related to Covid.
Identity theft is also a common problem related to unemployment benefits received during the pandemic.
As of last year, about 60,000 people have reported identity theft to the FTC. The United States Department of Labor on Monday launched a website for Americans whose personal information has been stolen and used to claim fraudulent unemployment benefits.
Americans are also falling prey to scams related to the introduction of Covid vaccines.
An “early access vaccine” scam was the most common cyber scam during the pandemic, according to Rublon, an online security company. Scammers send emails, texts and phone calls claiming to have access to a vaccine before official government sources.
The FTC’s $ 382 million figure likely underestimates the magnitude of fraud, as it is based on incidents described by consumers. Many may not have been reported.
“We all have to be on our guard,” Baker said. Before you click, you need to pause.
“Do your research and ask yourself if that website, email, text, direct message, or phone call is legitimate,” she added. “Be careful about handing over your money or personal information.”