50+ Lifestyles

Watch Out for Coronavirus Scams

By Richard J. Schillig, CLU, ChFC, LUTCF
Independent Insurance and Financial Advisor

The FTC has received over 20,000 COVID-19 related complaints since Jan 1, 2020 (source Federal Trade Commission, April 2020). Note this is as of the first quarter of 2020. This has created, among other things, scams.

Fraudsters and scam artists always look for new ways to prey on consumers. Now they are using the coronavirus pandemic. Federal, state, and local law enforcement are issuing warnings on the surge of coronavirus scams and how consumers can protect themselves.

The IRS recently issued a warning about various schemes related to those stimulus payments that are being sent to taxpayers under the Coronavirus Aid, Relief and Economic Security (Cares) Act. The IRS warns taxpayers to be aware of scammers who use words such as “stimulus check” or “stimulus payment” instead of the official term, “economic impact payment.’ And ask you to “sign up” for your economic impact check. OR contact you by phone, email, text or social media for verification of personal and/or banking information to receive or speed up you payment. Most Stimulus checks or deposits have been provided as of this date BUT be aware of scammers who try to convince you of additional payments.

In most cases, the IRS already deposited the payment directly into an account that taxpayers previously provided on their tax returns. If taxpayers have previously filed their taxes but not provided direct-deposit information to the IRS, they will be able to provide their banking information online at irs.gov/coronavirus. If the IRS does not have taxpayer’s direct-deposit information, a check will be mailed to the taxpayer’s address on file with the IRS. In addition, the IRS is reminding Social Security recipients who normally don’t file taxes that no additional action or information is needed on their part to receive the $1,200 economic payment – it will be sent to them automatically.

The Federal Trade Commission is tracking scam artists who are attempting to sell fraudulent products that claim to treat, prevent of diagnose COVIC-19. Currently the US Food and Drug Administration (FDA) has not approved any products designed specifically to treat or prevent COVID-19.

The FDA is continually warning consumers to be wary of companies selling unauthorized coronavirus home testing kits. In April the FDA authorized the first coronavirus test kit for home use. According to the FDA, test kits are available to consumers in most states with a doctor’s order. You can visit fda.gov for more information.

Scammers use phishing scams related to the coronavirus pandemic in order to obtain personal and financial information. These scams usually involve unsolicited phone calls, emails, text messages, or fake websites that pose as legitimate organizations and try to convince you to provide personal or financial information. Once scam artists obtain this information, they use it to commit financial theft. Be wary of anyone claiming to be from an official organization, such as the Centers for Disease Control and Prevention or the World Health Organization or nongovernmental websites with domain names that include the words “coronavirus” or “COVID-19,” as they are likely to be malicious.

Fortunately, there are some things you can do to protect yourself from these scams. Don’t click on suspicious or unfamiliar links in emails, text messages, and instant message services. Don’t answer a phone call if you don’t recognize the phone number – instead, let it go to voicemail and later check to verify the caller. Never download email attachments unless you can verify the sender is legitimate. Keep device and security software up-to-date, maintain strong passwords, and use multi-factor authentication. Never share personal or financial information via email, text message or over the phone. If you see a scam related to the coronavirus be sure to report it by calling us and we will in turn report it to the FTC.

Because of corona we will not be holding our monthly community meetings at our agency. In its place, we will be offering with some insurance carriers a virtual meeting that can be done from the privacy of your home. Please call us and advise of your interest in participating in this virtual meeting. Using your laptop or desktop computer at home is an ideal way to obtain the information needed for your Medicare decision. The first virtual meeting is offered by United Healthcare on July 16. To RSVP please call us at 563.332.2200 or email rjsandassoc@att.net