Pandemic Scams
Whether it’s a man-made calamity or the result of mother nature, scammers love to take advantage of disasters. According to the Federal Trade Commission (FTC), scammers have defrauded Americans out of $545 million in pandemic-related fraud since the beginning of 2020, using various scams ranging from online shopping to travel.
From January 1, 2020, to August 30, 2021, the FTC received nearly 600,000 consumer complaints related to the pandemic. Fraud was reported in around 61% of the cases, with a median loss of $380. One-third of American families couldn’t afford a $2000 emergency before the pandemic — getting scammed out $380 during a pandemic was likely devastating for many families.
With over 55,000 complaints, online shopping was the most common kind of fraud reported to the FTC. Because they spent more time indoors during the pandemic, Americans boosted their online orders. According to the FTC, many people were duped by “opportunistic websites” that claimed to offer popular products such as hand sanitizer, gloves, gadgets, and even puppies. Customers placed orders for these items but never received them.
According to FTC statistics, vacation and travel scams cost victims the most money, around $79 million. Most fraud involves refunds and cancellations. As Covid vaccines have increased, travel has returned in recent months, and scammers have responded by making phony airline ticket buying sites or customer care lines.
Be careful shopping on the internet and be sure to do your due diligence before buying from a suspicious website — just like you’d do your due diligence before investing.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.
