A joint federal-state task force for the investigation and prosecution of misconduct arising from the COVID-19 pandemic has formed.
The New Jersey COVID-19 Fraud Task Force, with the collective investigative power of federal and state law enforcement agencies, will address fraud complaints including unlawful hoarding of medical supplies, price gouging, charity scams, procurement fraud, insurance fraud, phishing schemes, and false and misleading investment opportunities.
The Task Force will share common scams so individuals and businesses can protect themselves.
“Our two offices, working in concert with all of our law enforcement partners, will ensure that that there is a solid front protecting the public from criminals who are attempting to illegally profit from this health crisis,” U.S. Attorney for the District of New Jersey Craig Carpenito said, in reference to New Jersey Attorney General Gurbir Grewal, in a prepared statement. “Whether you’re price-gouging on necessities or hawking phony cures or protections, if you’re trying to rip off the public, we will find you and come after you.”
Attorney General Gurbir Grewal. – OFFICE OF THE ATTORNEY GENERAL/TIM LARESEN
“An unprecedented public health crisis creates an unprecedented opportunity for scammers and con artists,” Grewal said in a prepared statement. “Now more than ever, we need to work together to protect our community from fraud.”
New Jersey Acting State Comptroller Kevin Walsh, Carpenito and Grewal will lead the task force, and will include the following federal agencies: the Federal Bureau of Investigation; the Department of Health and Human Services, Office of the Inspector General; the U.S. Secret Service; the U.S. Postal Inspection Service; Immigration and Customs Enforcement, Homeland Security Investigations; Social Security Administration, Office of Inspector General; and the U.S. Department of Education, Office of Inspector General.
It will include several divisions within the OAG, including the New Jersey State Police, the Division of Criminal Justice, the Division of Consumer Affairs, the Division of Law, the Office of the Insurance Fraud Prosecutor, and the Office of Public Integrity and Accountability.
Remember, if there is a medical breakthrough, you won’t hear about it for the first time through an email, online ad, or unsolicited sales pitch.
According to the new task force, the most common types of misconduct includes unlawful hoarding, price gouging, treatment scams, supply scams, provider scams, charity scams, phishing scams, app scams, and investment scams.
Some scammers are reportedly offering to sell fake cures, vaccines, and advice on unproven treatments for COVID-19; while others are creating fake shops, websites, social media accounts and email addresses claiming to sell medical supplies currently in high demand, such as surgical masks. Some are also contacting people pretending to be doctors and hospitals that have treated a friend or relative for COVID-19, and demanding money for treatment.
Scammers are soliciting donations for individuals and groups affected by COVID-19; and some are pretending to be part of health authorities such as the World Health Organization and the Centers for Disease Control and Prevention, sending phishing emails to trick recipients into downloading malware or providing personal identifying information.
Scammers are also reportedly creating and manipulating COVID-19 tracking mobile apps to insert malware that will compromise devices and personal information.
Others are offering phony online promotions, often styled as “research reports,” claiming that products or services of publicly traded companies can prevent, detect, or cure COVID-19, and that those companies’ stock will skyrocket as a result.
To avoid scams, the task force recommends that people independently verify the identity of any company, charity, or individual contacting them; check for similar but phony email addresses (such as “cdc.com” instead of “cdc.gov”); be wary of unsolicited emails offering information, supplies or treatment; check online reviews of companies offering COVID-19 products and supplies; research charities soliciting donations in connection with COVID-19; be cautious of investment opportunities, and ignore offers for a COVID-19 treatment or cure.
“Remember, if there is a medical breakthrough, you won’t hear about it for the first time through an email, online ad, or unsolicited sales pitch,” the announcement from the OAG said.
Complainants, who will remain anonymous, can report possible misconduct through a hotline established by the National Center for Disaster Fraud at (866) 720-5721 or disaster@leo.gov.
