COVID Fraud Enforcement Scam

COVID Fraud Enforcement Scam is One of the Multitude of New Scams to Emerge

The COVID Fraud Enforcement Scam is a new form of government impersonation scam that is sweeping across the United States, blending elements of tech-support fraud with government impersonation to deceive both individuals and businesses.

The United States Attorney’s Offices and the FBI  have issued a public warning about this emerging threat, urging vigilance and caution.

How the COVID Fraud Enforcement Scam Works

In this scam, victims receive what appears to be an official court document via email, U.S. mail, text message, or website pop-up.

The document claims that the recipient is under investigation for Paycheck Protection Program (PPP) fraud and asserts that an arrest warrant has been issued by the Department of Justice (DOJ) Civil Division’s Commercial Litigation Branch.

To purportedly “lift the warrant,” victims are instructed to visit a cryptocurrency kiosk and make a designated payment. However, these notices and documents are entirely fabricated, and individuals who receive them are encouraged to report the incident to the FBI at https://www.ic3.gov.

Obviously, the scammers are continually refining their tactics to appear more credible and succeed in defrauding unsuspecting victims of their money.

There has been a noticeable increase in scams where perpetrators impersonate law enforcement officers, government agencies, banks, or companies to coerce victims into relinquishing money or valuables, or their personal information.

To combat this threat, law enforcement agencies urge the public to remain vigilant and treat unsolicited communications with skepticism. Individuals should verify the authenticity of any requests for payment or personal information before taking action.

Government agencies do not make first contact with individuals via email or text to issue summons, demand payment, or threaten arrest.

Everyone is advised to verify the legitimacy of any communication by contacting the relevant agency directly using the publicly listed contact information on their official website.

Victims of such scams are urged to report the incident to the FBI’s Internet Crime Complaint Center – visit reporting.AgainstScams.org for their information.

Consumers who encounter requests to wire money, pay cryptocurrency, or transport large sums of cash to avoid legal consequences or resolve any similar issues should cease communication immediately and report the incident to the FBI and the FTC.

If the scammers have said they would come to the victim’s address to pick up the money – be sure and contact the local police too.

According to the U.S. Attorney and the FBI:

A new twist on an old scam is targeting consumers and businesses throughout Northeast Ohio. The United States Attorney’s Office, Northern District of Ohio, and FBI Cleveland are warning the public about a scam that combines aspects of tech-support fraud with government impersonation.

In this scam, the victim receives a document or documents resembling an official court document both in its format and language, sent through an email, the U.S. Mail, a text, or website pop-up. The document and/or accompanying notice state that the victim is being investigated for Paycheck Protection Program (“PPP”) fraud and that an arrest warrant has been issued. The notice asserts that the Department of Justice (“DOJ”) Civil Division’s Commercial Litigation Branch has issued it, and it states that, to “lift the warrant,” the victim must go to a cryptocurrency kiosk and make a designated payment. Such notices and documents are fake, and persons who receive them should report receiving them to the FBI at https://www.ic3.gov.

“Fraudsters are often quite sophisticated. Time and again, we see these criminals refine their schemes to make their false claims seem more believable, and then succeed in cheating our community members of their hard-earned money,” said U.S. Attorney Rebecca C. Lutzko. “Recently, we are seeing more and more scammers impersonate law enforcement officers, government agencies, banks, and companies, and use these false personas to convince their victims to hand over money, gold, or other things of value. The United States Attorney’s Office, the FBI, and our other law enforcement partners will continue to pursue such scammers aggressively, but we would much rather prevent a scam than prosecute one. Please remain vigilant, treat unsolicited emails, texts, and pop-up ads with suspicion, and check in on friends or loved ones who you think might be particularly susceptible to these types of scams. And if you believe that either you or someone you know has been the victim of a scam, promptly report it to the FBI or, if appropriate, call the National Elder Fraud Hotline at 1-833-FRAUD-11 [1-833-372-8311].”

“Scammers are becoming increasingly clever in the way they are portraying government agencies and banking and financial institutions,” said FBI Cleveland Special Agent in Charge Greg Nelsen. “This scam– creating bogus documents designed to look like a court summons and compelling the victim to oblige or face arrest, jail time, or further action, highlights the efforts the criminals will take to dupe unsuspecting victims. We can’t stress enough to the public that the government will not contact you via email or text with a summons for action, payment, or arrest and instead, urge residents to place a phone call with the publicly listed phone number of the government agency, not the number or email listed in the [bogus] document, to confirm if a communication was sent by that agency. Typically, it’s a scam. And in that case, we ask that you report it to the FBIs Internet Crime Complaint Center at ic3.gov.”