Coronavirus Stimulus Ripoffs And Other Scams: How To Spot Them
In the coming days, most Americans will begin receiving federal stimulus payments to help offset the economic impact of the new coronavirus pandemic. In response, the Internal Revenue Service and other agencies are doubling down on warnings that urge us to beware of scammers looking to take advantage of the millions expected to receive the payments.
The IRS has advised Americans to watch out not only for emails but also text messages and social media scams requesting money or personal information.
"The IRS isn't going to call you to verify or provide your financial information so you can get an economic impact payment or your refund faster," IRS Commissioner Chuck Rettig said in a statement. "That also applies to surprise emails that appear to be coming from the IRS.”
Don't miss local and statewide news about coronavirus developments and precautions. Sign up for Patch alerts and daily newsletters. Also, for updated coverage on national news surrounding coronavirus, sign up for the Patch Across America daily newsletter.
The way Americans will receive the economic impact payment is fairly straightforward. If taxpayers included direct deposit information on their 2019 or 2018 tax return, the payment will be sent via direct deposit. If the IRS does not have direct deposit information on file, a check will be mailed.
Here are some things scammers may do when trying to take advantage of Americans receiving their payments:
Emphasize the words "stimulus check" or "stimulus payment." The official phrase used by the IRS is "economic impact payment."
Ask you to sign over your economic impact payment check to them.
Ask by phone, email, text or social media for verification of your personal or banking information by saying the information is needed to receive or speed up your economic impact payment.
Suggest you can get a tax refund or economic impact payment faster by them working on your behalf. This scam could be conducted by social media or even in person.
Mail you a bogus check, perhaps in an odd amount, then tell you to call a number or verify information online in order to cash it.
A situation such as the economic impact payments is ideal for scammers, according to Colleen Tressler, a consumer education specialist with the FTC.
“With our experience, the minute something like this is announced, it provides more fodder for scammers to glom onto and go after people with,” Tressler said. “Anyone who tells you they can get you this money now is a scammer. Bottom line.”
Some new scams are hidden in plain sight. In Kentucky, more than 100 people were duped by a fake coronavirus testing site set up in a convenience store parking lot, The New York Times reported. Workers in white hazmat suits swabbed the mouths of drivers, who each had forked over $240 to learn whether they had been infected with the coronavirus.
Red flags were everywhere, witnesses said. From workers not changing gloves between patients to a sign declaring the operation was approved by “HIPPA,” little about the site was legitimate.
CORONAVIRUS SCAMS BANK MILLIONS
Scammers are following headlines, seizing a big opportunity to capitalize on a nation’s anxiety, fear and emotions. They’re doing this by taking advantage of Americans — especially older Americans — ordered to stay at home, quarantine or work from home, and are peddling everything from miracle virus cures to medical supplies to fake charities.
Since the onset of the coronavirus pandemic, the Federal Trade Commission has received nearly 13,400 fraud reports, resulting in a total loss of $9.59 million. The victims in coronavirus-related scams have lost $556 on average.
The top categories of coronavirus-related fraud complaints, according to the FTC, include travel and vacation-related reports about cancellations and refunds, reports about problems with online shopping, mobile texting scams, and government and business imposter scams.
RELATED: U.S. Coronavirus: How To Spot, Avoid Scammers
Coronavirus Economic Stimulus Payments: What You Need To Do
Grandparent Scam: Patch Readers' Stories Of Terrifying Con Job
Pals Don't Let Pals Fall For Coronavirus Hoaxes On Social Media
In an effort to crack down on coronavirus-related scams, the FTC and Federal Communications Commission last week sent a joint letter to three companies providing Voice Over Internet Protocol (VoIP) services, warning them that routing and transmitting illegal robocalls, including coronavirus-related scam calls, is illegal and may lead to federal charges.
The letters came one week after the FTC sent nine warning letters to VoIP service providers and other companies, warning them that they may be assisting illegal telemarketing relating to the coronavirus.
The coronavirus crisis makes it easier than ever for scammers to cash out, according to Kathy Stokes, director of fraud prevention programs with the American Association of Retired Persons. The AARP keeps a continuously updated list on its website of coronavirus-related scams.
“Scammers know how to take advantage of a person and get them into a heightened emotional state to get what they want,” Stokes said. “With coronavirus, most of us are already in that heightened state of emotion, so half the job of these scammers is already done.”
This makes it more important than ever to know how scammers are targeting Americans and what we can do to protect ourselves.
HOW TO PROTECT YOURSELF
There are fundamental ways consumers can protect themselves from losing cash or giving out sensitive personal data. Here are some tips from the FTC on how to avoid coronavirus scams:
Hang up on robocalls. Don’t press any numbers. Scammers are using illegal robocalls to pitch everything from scam coronavirus treatments to work-at-home schemes. The recording might say that pressing a number will let you speak to a live operator or remove you from their call list, but it might instead lead to more robocalls.
Fact-check information. Scammers, and sometimes well-meaning people, share information that hasn’t been verified. Before you pass on any messages, contact trusted sources. Visit What the U.S. Government is Doing for links to federal, state and local government agencies.
Know whom you’re buying from. Online sellers may claim to have in-demand products — such as cleaning, household, and health and medical supplies — when, in fact, they don’t.
Don’t respond to texts and emails about checks from the government. The details are still being worked out. Anyone who tells you they can get you the money now is a scammer.
Don’t click on links from sources you don’t know. They could download viruses onto your computer or device.
Watch for emails claiming to be from the Centers for Disease Control and Prevention (CDC) or experts saying they have information about the virus. For the most up-to-date information about the new coronavirus, the FTC recommends visiting the Centers for Disease Control and Prevention and the World Health Organization.
Ignore online offers for vaccinations. There currently are no vaccines, pills, potions, lotions, lozenges or other prescription or over-the-counter products available to treat or cure the new coronavirus.
Do your homework when it comes to donations, whether through charities or crowdfunding sites. Don’t let anyone rush you into making a donation. If someone wants donations in cash, by gift card or by wiring money, don’t do it.
It’s important to be vigilant as an individual and recognize scams when you see them. In fraud cases such as those stemming from the coronavirus crisis, every American is susceptible, and anyone can be a victim.
In this time of heightened emotions, Stokes said it’s best for everyone to engage with their “inner skeptics.” Don’t answer the door, and let calls go to voicemail in order to screen them. Then, do your best to make an educated decision to pursue the matter further.
Tressler agreed, adding it’s paramount that you take a step back.
“Everyone is feeling urgency, anxiety, confusion and fear right now, so it’s really important to take a moment,” Tressler said. “If you are approached by anyone and it doesn’t seem right, talk to other people about it and trust your gut.”
The FTC is keeping up-to-date data on coronavirus scams and how to avoid them. Learn more by visiting www.ftc.gov/coronavirus.
Other Helpful Links
Report Phishing and Online Scams: IRS
This article originally appeared on the Across America Patch
