Skip to main content

WSU Audit Update

Perfect Incubator for Disaster Fraud - Six Scams to Watch For

March 18, 2020
By Chris Cavanaugh | chris.cavanaugh@wichita.edu

It's a sad fact of life that natural disasters and pandemics are perfect incubators for scammers to take advantage of the public's fear and anxiety. Rich with sensitive information, colleges and universities are an attractive target.

This post lists the top six coronavirus scams to watch for and four tips for avoiding the scams.

Fear and Anxiety

Even in normal times, scammers are always at work. But scammers are even more effective in times of crisis. Laurie Santos, Harvard University professor of psychology and The Happiness Lab podcast host, explains:

In this current crisis, none of us seem able to make reasonable decisions because we're all too anxious and overwhelmed.

Laurie Santos, PhD, Harvard University

Anxiety in times of crises make us more susceptible to scams. In a recent podcast, Santos explains how this anxiety and the rush of crowds even affected her decision making when grocery shopping, causing her to pick up things she didn't need and forgetting the essentials she went shopping for. 

Top Six Coronavirus Scams

  1. Email and text phishing scams disguised as messages from CDC or WHO.
  2. Investment pump-and-dump scams for fake treatment products.
  3. Third-party seller and buyer scams for fake products on legitimate retail websites.
  4. Fundraising scams by fake charities.
  5. Fake websites advertising fraudulent treatment products.
  6. Illegal price gouging on safety or treatment products.

In its online feature Coronavirus fraudsters add to the anxiety and misery, the March 2020 edition of Fraud Magazine provides background information about the current pandemic and more details about how these scams work. 

And here's a few headlines related to these scams, all within the first few weeks of the outbreak:

 Four Tips for Avoiding Scams 

The Federal Trade Commission offers four tips for avoiding coronavirus scams:

  • Don't click on links from sources you don't know (this always applies).
  • Be wary of emails claiming to be from the CDC or other experts.
  • Ignore online offers for vaccinations.
  • Do your homework when donating and don't let anyone rush you.

Coronavirus Scams - What the FTC is Doing

The Happiness Lab with Dr. Laurie Santos

Coronavirus BONUS: Coaching Yourself Through a Crisis

In this episode, Santos is joined by Dr. Ethan Kross, University of Michigan Professor of Psychology and Director of its Emotion and Self-Control Laboratory.

You can find more Coronavirus BONUS episodes here:

The Happines Lab With Dr. Laurie Santos

Santos is very engaging and you may find a few nuggets to help you cope during these uncertain times.

Update - April 1, 2020

There's been no shortage of news reports about scams related to the coronavirus or the government's financial relief efforts. This one provides an excellent overview:

Washington Post Cybersecurity 202 - Coronavirus pandemic unleashes unprecedented number of online scams

  • Spammers and scam artists have never had an opportunity like this before.
  • Consumer complaints related to the coronavirus doubled in the past week.
  • Researchers say the wave of attacks is just getting started.
  • Average loss for a consumer duped by one of these scams is $600.
  • Vast majority of scammers are unlikely to face consequences.

This overview also highlights how scammers not only prey on fear and anxiety, but also on our desire to act humanely and aid public health. Scammers have no shame and it's more lucrative, and less likely to be punished, than old fashioned robbery.

Update - April 23, 2020

Washington Post Cybersecurity 202 - Coronavirus has sparked a global war between scammers and defenders

  • Google's Threat Analysis Group is detecting 18 million malware and phishing Gmail messages per day related to the virus.
  • There has been a 6,000 percent increase in phishing and spam emails since March 11 when the World Health Organization declared the outbreak a pandemic.
  • The FBI's Internet Crime Center has received and reviewed more than 3,600 coronavirus-related complaints, mostly about fake vaccines, phony cures and fraudulent charity drives.
  • The worst may be yet to come as the stimulus relief funds head out the door.

 

©