During the ongoing COVID-19 virus outbreak, fraudsters globally are attempting to exploit the situation to defraud individuals and businesses including NGOs. It is important to be aware of different types of fraud and scenarios that could happen and be informed of the steps you can take to avoid becoming a victim.
Types of Fraud:
- Fake goods
- Investment opportunities
- Malicious emails
- Fake charities
- Fake funding
Fake goods
As the demand for resources grows and the pressure on businesses increases, it is possible clients will seek new suppliers to meet that demand. Fraudsters are setting up fake websites and advertising across open source and social media that they can provide, for example, goods such as face masks, ventilators, cleaning goods, food and domestic sanitary equipment. The advertising will indicate that the supply can be made available in bulk. It is unlikely to be extremely cheap as fraudsters are aware of the sheer demand for such goods.
Prevention
To prevent yourself being a victim of this scam the following steps can help:
- Only deal with a confirmed supplier either by previous successful purchase, government authorized or recommended by someone you trust who has had a successful purchase
- Always conduct extensive research
- Always use sites such as WHOIS and business registrations to establish how long the ‘new’ supplier has been in existence
- Verify phone numbers and emails provided
- When in doubt, avoid the supplier
Investment opportunities
The COVID-19 outbreak has affected global markets such as the Dow Jones and S&P 500. Shares in companies have been deeply affected, which is also impacting pensions and dividends. Individuals with liquidity are avoiding financial markets until the perceived ‘bottom’ has been reached.
Fraudsters are aware of this and have been setting up fake websites and advertising investment opportunities with high returns. They may advertise investment in the Gold market or property and promise substantial returns.
The advertising encourages individuals and companies to make payments to a bank account. Literature via email will be provided and they may provide details relating to alleged registration with local financial regulators.
Prevention
In order to prevent yourself from being a victim of this type of scam the following steps can help:
- Only invest with a financial institution you have previously successfully used, government authorized or recommended by someone you trust who has successfully invested.
- Always conduct research around whether there is a suggestion it could be a scam. Review the website using WHOIS and business registrations to establish how long the investment company has been in existence.
- Review any alleged financial membership number with the appropriate website.
- Such opportunities always promise excellent returns which are just not achievable. Common sense should be used in any decision making as to whether to invest.
Malicious emails
Nearly every piece of news is currently connected with COVID-19. Many Governments and companies are also sending out emails about the virus and how they are dealing with it.
Fraudsters are pretending to be Government organizations / businesses / financial institutions and sending out fake emails designed to trick people into opening attachments that download malicious software. Such email may have fake screenshots and imagery taken from real and related websites.
Prevention
In order to prevent yourself from being a victim of this type of phishing / malware attacks the following steps can help:
- Never click on any link or open any attachment within an email unless it’s from a known and confirmed contact.
- If you get an email from a website you subscribed to, go directly to the website to check on your account. Do not use any link in the email you received.
- Delete all emails you are suspicious of immediately. Clear your junk mail regularly as well as your email deletion folder.
Fake charities
The COVID-19 crisis has left a lot of individuals short of supplies and basic living requirements in certain regions.
Fraudsters are setting up fake websites pretending to be charities and appealing to businesses and individuals for monetary contributions to help individuals and communities affected. The websites have used the copious amount of material out in the public domain to help build their websites to give them an air of authenticity.
The fraudsters are setting up ways to make donations via bank accounts, financial institutions and fake money services businesses.
Prevention
In order to prevent yourself from being a victim of this type of scam the following steps can help:
- Verify charities and non-profits on the IRS website in the US and Canada Revenue Agency in Canada.
- Only use a charity or NGO that is properly registered and has been for a considerable amount of time.
- Always research whether an alleged charity is a suspected in a scam.
Fake funding
In this scam, clients or individuals receive fake emails, text messages or social media posts asking them to donate money to a research team that is allegedly developing a drug to treat COVID-19. Others claim they are nearing a vaccine for immunizing the public against the virus.
The email will take them to a donation link where they can send a donation to help the advertised cause.
The fraudsters will put imagery and videos in the emails showing people suffering but also provide some technical information apparently linked to the vaccine, as well as videos allegedly to show the vaccine being tested.
Prevention
In order to prevent yourself from being a victim of this type of scam the following steps can help:
- Never click on any link or open any attachment within an email not from a known and confirmed contact. The same applies to any messages via social media.
- All such projects around vaccine development are Government led and do not involve soliciting donations.
- Do not make any such donations as these sources are fake
Other steps to take:
- Please ensure your contact details in your accounts are up to date.
- If you are working from home on a phone number that is not recorded on your account, please contact your account manager.
- As with business transactions, please conduct relevant due diligence and confirm the validity of a supplier.
- If you are concerned that you are the victim of a fraud, please contact bank or service provider as soon as possible.