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SCAM & FRAUD to be aware of“Fraud follows coronavirus spread: fake vaccines, testing kits, testing sites, investment scams are exacting a toll”“Coronavirus-related fraud attempts seen at federal and state levels” “Coronavirus pandemic is seeing surge in cybercrimes”“Trying to profit from the ‘widespread fear surroundCOVID-19”Fact Check: What’s true and what’s false about coronavirus? –some fraud is occurring in email and Facebook posts as good advice, even if there is no monentary intent – GET THE FACTS from a reputable organizationWorld health International: Scam alert, quick links, AdviceCenter for Disease Control: - Online self-checker sites – use the CDCs “Be On The Lookout For These COVID-19 Insurance Scams” Metz, Forbes StaffAdvisorContributor GroupPersonal FinanceWith much of the country on lockdown or practicing social distancing measures to flatten the curve of the COVID-19 pandemic, several organizations that monitor insurance fraud have issued alerts to consumers. Insurance fraud is a multibillion dollar criminal enterprise that often preys on consumers’ fears and anxieties during times of crisis.?As COVID-19 spreads, the new indicators of fraud are hard to predict, according to various members of the fraud-fighting community. Investigators urge consumers to be vigilant and be on the lookout for scams. Expect to see scams like robocalls, phishing and spam mail with a COVID-19 spin.?“Really, if it sounds too good to be true, it probably is,” says James Schweitzer, Senior Vice President and Chief Operating Officer at the National Insurance Crime Bureau (NICB). “So many of these internet scams and social media posts are appealing to this anxiety level that we’re all dealing with.”?Schweitzer adds that scammers are targeting us by appealing to our desire for information that makes us feel good and providing a sense of hope.?If someone is asking you to provide your credit card information or any type of personal information, like your Social Security number, that’s a major red flag and you should not give out that information. “Ninety-nine percent of the time, it’s a scam,” says Schweitzer.? Here are some COVID-19 insurance scams to be aware of.?Fraudsters are using the same old scams with a COVID-19 spin?GETTYCOVID-19 Car Insurance ScamsFraud investigators warn that scammers will run their old playbooks of fraud schemes, but also take advantage of COVID-19 fears, like social distancing and fear of infection.?Staged accidents?are generally defined as an event where someone purposely causes an accident in order to make a claim against your car insurance or their own. Intentionally rear-ending or sideswiping another car are common schemes. Staged accidents are often committed by organized fraud rings.With much of the country practicing social distancing, fewer cars on the road and fewer witnesses, scammers have an opportunity. Investigators say scammers will use the fear of spreading COVID-19 as an excuse to discourage police involvement, leaving an opening to file false insurance claims.Jump-ins?are when people who were not in the car at the time of the “accident” file injury claims. They hope to get a settlement from another driver’s?liability car insurance. The COVID-19 spin is similar to the staged accident spin. Scammers might take advantage of others’ anxieties and suggest a limited exchange of information, such as passenger names. With no police report and no witnesses, they have an opportunity to make false injury claims for people who were not in the car.?If you get into a car accident, try to note how many people were in each car and, if possible, their names and contact information. You should still practice social distancing. You can also call the police and wait in your car.?Auto repair fraud? can happen when a repair shop takes advantage of both you and your insurance company. Fraud investigators report that some repair shops are charging excessive fees for cleansing, disinfecting and storing vehicles, claiming they cannot work on vehicles for several days because of possible COVID-19 infection.Be suspicious of auto repair shops that charge high out-of-pocket fees for cleaning and storing your car. Speak with your insurance adjuster before paying any up-front out-of-pocket costs.COVID-19 Travel Insurance ScamsThe Coalition Against Insurance Fraud is urging consumers to be wary of pitches for bogus travel insurance policies that claim to cover COVID-19-related trip cancellations. Most?travel insurance?policies do not cover pandemics. If someone pitches you travel insurance that specifically covers COVID-19-related problems, that should raise a red flag.Cancel for Any Reason You might hear the term “cancel for any reason” (CFAR) coverage in a sales pitch. This is a legitimate coverage type sold by travel insurance companies, but it’s sold as an add-on to a base policy. CFAR coverage is not sold as a stand-alone insurance policy. And in legitimate policies there are usually strict limitations on when you can buy CFAR and how you can use it.?You typically have to purchase CFAR within 14 to 21 days of your initial trip payment. For example, if you made your first trip payment in early March, you can’t add CFAR in April.CFAR coverage typically adds 40% to the cost of your base travel insurance policy. If someone offers free CFAR coverage, that should raise a red flag.?You typically have to cancel the trip within a certain time frame of your departure. Some travel insurance companies require 48 hours before departure to use CFAR coverage.You do not get reimbursed for 100% of your lost trip expenses. Most CFAR policies reimburse between 50% to 75% of your prepaid, nonrefundable trip costs.The rules for CFAR coverage vary depending on the travel insurance company, but any sales pitch that strays beyond these general guidelines should raise a red flag. It’s a good idea to be extra vigilant, and if you have any questions about CFAR coverage, contact the travel insurance company directly to make sure it is a legitimate offer.?Some legitimate travel insurance companies have extended coverage that would typically be excluded (such as trip cancellation because of a pandemic) to travelers affected by the COVID-19 outbreak, according to Kasara Barto, a spokesperson for , a travel insurance comparison website.?“Even though the coronavirus outbreak is not a covered event under a standard policy, we’ve seen providers making exceptions and refunding policy premiums if a trip was canceled and refunded by the travel supplier,” says Barto.The bottom line here is to be aware of scammers impersonating legitimate travel insurance companies. While some travel insurance companies have extended coverage that would typically be excluded to their policyholders during the COVID-19 outbreak, bad actors may try to take advantage of financial anxieties and sell bogus products.?Do not engage. They are so smooth. Just hang up the phone.Jim Quiggle, Coalition Against Insurance FraudOther Types of COVID-19 ScamsOrganizations including the NICB, the Coalition Against Insurance Fraud and the Federal Trade Commission (FTC) have warned about several types of COVID-19-related scams. Here are a few to know about.Bogus insurance agents?are people who claim to be licensed agents and mimic legitimate, mainstream insurance companies in their pitches to sell COVID-19 insurance. Jim Quiggle, Senior Director of Communications for the Coalition Against Insurance Fraud, urges consumers not to click on any links or speak with a caller who’s pitching an insurance product that claims to cover COVID-19 related problems.??“Do not engage,” says Quiggle. “These are trained pitchmen who have a response for every objection you can imagine. They are so smooth. Just hang up the phone.”Phishing/spoofing/spam?are unsolicited emails that request personal information. Be on the lookout for emails from companies that claim to have access to COVID-19 testing kits, masks, ventilators, insurance and cures. The Federal Bureau of Investigation urges consumers to avoid filling out any forms in an email that requests personal information and not to click on links in the email.?If you’re interested in an emailed offer, contact the actual business that supposedly sent the email to verify the offer is genuine.?Robocalls?can come from scammers falsely claiming to be from legitimate well-known insurance companies and asking you to call a toll-free number where someone on the other end may try to sell you COVID-19 health insurance coverage.?The FTC has warned that robocall scammers are also pretending to be from the Social Security Administration, offering fake COVID-19 tests to Medicare recipients, and running small business listing scams. You can?listen to a sample of illegal robocalls?collected by the FTC.The Federal Communications Commission has also provided?audio samples?of COVID-19 scams.?The World Health Organization?(WHO) has warned that criminals are disguising themselves as WHO officials to steal both money and sensitive information. WHO has said its only call for donations has been the?COVID-19 Solidarity Response Fund.?Keep in mind, WHO will:Never ask you for a user name or password to access safety information.Never email you attachments you didn’t request.Never ask you to visit a link outside of?who.intNever charge you money to apply for a job, register for a conference or reserve a hotel.Never conduct lotteries.Never offer prizes, grants, certificates or funding through email.You can?report a scam to WHO. ?(World Health Organization or any of the organizations listed belowReally, if it sounds too good to be true, it probably is.James Schweitzer, National Insurance Crime BureauWhat Do I Do If I Think Something is Suspicious?If something seems suspicious, like an email, phone call or someone offering some type of service, the FTC?recommends you “think critically.” Ask yourself three questions:Who sent the message?? If you don’t know them, don’t immediately trust them. Try to verify they are who they say they are. The FTC has warned that government impersonators are active right now.What do they want you to do?? Are they trying to get you to act in some way? For example, are they trying to get you to buy something, download something or share personal information??What evidence supports their message?? It’s a good idea to be extra vigilant and fact-check information with a few reliable, independent sources. If the information in the message doesn’t hold up or seem accurate, do not engage.If something’s not adding up and you think it’s a scam, you can?file a complaint?with the Federal Trade Commission.?Here are some other resources for COVID-19-related scams:The Federal Trade CommissionThe Federal Communications CommissionThe U.S. Department of JusticeCoalition Against Insurance FraudNICB COVID-19 resource center“Beware these COVID-19 scams, which have bilked consumers of nearly $6M”By?Diane WilsonWednesday, April 1, 2020 5:06PMThe scammers are calling, texting, tweeting, emailing, you name it, and they are using the?novel coronavirus?to catch you off guardAccording to the Federal Trade Commission, consumers have lost $5.85 million for COVID-19 schemes, and that's just what has been reported to the agency. The average median loss to these scams for each consumer is about $600.Since the beginning of the year, the FTC has received?more than 8,400 coronavirus-related complaints?from consumers, double what they were about a week agoCOVID-19 Scam Voicemails:You must be on guard for several different types of voicemails that are all scams.?Here are a few examples?from the Federal Communications Commission on some of the bogus voicemails.Test Kit Phone Scam:? The Coronavirus Response Act has made coronavirus testing more accessible immediately. If you want to receive a free testing kit delivered overnight to your home, press 1. If you do not want your free testing, press 2.Student Loan Callback Scam:? Hello this is Brad ... with an important message regarding the effects of the coronavirus outbreak on your student loans. As you may have already heard, President Trump invoked his power as commander-in-chief by declaring a national emergency due to the widespread impact of COVID-19. New measures will include waiving interest on your federal student loans until further notice. During this time our offices have continued to maintain full staffing levels and will continue to do so until further notice. For more information on how these new measures will impact your future payment obligations, call us back today at 855-264-XXXX before 6:00 PM Pacific Standard Time. Thanks, and have a great daySocial Security Scam: Hello this is a call from the Social Security Administration. During these difficult times of the coronavirus, we regret to inform you that we have got an order to suspend your socials immediately within 24 hours due to suspicious and fraudulent activities found on your socials. We are contacting you as this case is critical and needs your urgent attention. To get more information about this case please call immediately on our department number 888-991-XXXX. I repeat 888-991-XXXXDelivery Scam: Dear customer: Due to coronavirus outbreak, we deliver a wide range of sanitizers, handwash, toilet papers, and face masks at your doorstep to safeguard you and your family from coronavirus. No need to visit stores. Get delivery in 24 hours. To order press 1. For more knowledge and safety tips about coronavirus, press 2.HVAC for Coronavirus Phone Scam:? Protect your loved ones from the coronavirus. For only $79 our highly trained technicians will do a full air duct cleaning and sanitation to make sure that the air you breathe is free of bacteria. So don't hesitate, press 0 and have your duct system cleaned and sanitized now. Press 9 to be removed from this list.Diabetic Test Kit Scam:? If you are diabetic and using insulin, we can qualify you to get a free diabetic monitor and a complimentary testing kit for coronavirus. To learn more, please press 1, otherwise please press 2.Work From Home Scam: ?Hello this is a courtesy invitation to work with Amazon from home and make up to $400 in a day. Open enrollment has begun for the Amazon associate program. The program allows you to partner with Amazon and share in their success, as a referral partner. Everyone over 18 qualifies. No sales or technical experience are needed. Work from home. You set your own schedule. To learn more about partnering with Amazon, call the Amazon hotline at 360-203-XXXX. Spaces are limited so please call now, 360-203-XXXX, that's 360-203-XXXX. Thank you.Other COVID-19 ScamsMany people are also reporting getting texts, emails and social media messages about the stimulus package. Though many consumers will receive checks as part of the federal government response to the coronavirus, no one will call or text you to verify your personal information or bank account details in order to "release" the funds. The?Treasury Department?expects most people to receive their payments via direct-deposit information that the department has on file from prior tax filings.You also need to beware of charity scams. Hackers will duplicate nonprofit websites or pretend to be with a legitimate charity and call for donations. If you want to donate, never do it from a telemarketer or a robocall. Instead, go directly to the charity and make your donation through it.The FCC offers the following tips to help you protect yourself from scams, including coronavirus scams:Do not respond to calls or texts from unknown numbers, or any others that appear suspicious.Never share your personal or financial information via email, text messages, or over the phoneBe cautious if you're being pressured to share any information or make a payment immediately.Scammers often?spoof phone numbers?to trick you into answering or responding. Remember that government agencies will never call you to ask for personal information or money.Do not click any links in a text message. If a friend sends you a text with a suspicious link that seems out of character, call them to make sure they weren't hacked.Always check on a charity (for example, by calling or looking at its actual website) before donating.Internet Pet AdoptionsThe Centers for Disease Control and Prevention (CDC) has learned that Internet scammers are falsely representing themselves as CDC employees in e-mails to U.S. citizens.In this scam, victims are asked to send money overseas to adopt a dog. The “importer” tells the victim that a CDC quarantine station is holding the dog and lists numerous conditions that must be met, including payment of fees, before the dog can be released.CDC does not quarantine dogs, nor does it require a fee to bring them into the country.Typical Animal Adoption ScamsCDC cautions consumers to be aware of the potential for fraud involving the commercial trade of animals. Similar scams have been reported for quite some time, usually involving dogs, cats, or monkeys. In most of these scams, victims respond to newspaper or Internet ads offering animals for adoption in exchange for shipping costs.Investment ScamsNorth Carolina Secretary of State Elaine Marshall is cautioning investors that the ongoing coronavirus pandemic will likely spark a surge of investment fraud."Sadly, scam artists will seek to exploit rising concerns about COVID-19 to draw people into investment traps," Marshall said. "Fraudsters often use the day's headlines in their pitches, so expect to see them prey on the fear surrounding the unfolding coronavirus pandemic and recent economic developments to promote sham investments."What you need to watch out for are imposters who may develop schemes falsely purporting to raise capital for companies manufacturing surgical masks and gowns, producing ventilators, distributing small-molecule drugs and other preventative pharmaceuticals, or manufacturing vaccines and miracle curesMarshall also said don't fall for scammers who will seek to take advantage of concerns with the volatility in the securities markets to promote "safe" investments with "guaranteed returns" including investments tied to gold, silver and other commodities; oil and gas; and real estate."From guarantees of high returns without risk to promises of miracle cures, if it sounds too good to be true, it probably is," Marshall warned. "I urge North Carolinians to follow these tips to help protect your financial and physical health as you navigate these uncertain times."Investors are encouraged to call the NC Investor Hotline at (800) 688-4507 or email?secdiv@?before signing over their money in any investment opportunity. If you suspect an investment opportunity is fraudulent you can report it at?. You can also find a wealth of investor education material at?divisions/securitiesHere are some Troubleshooter Takeaways to help protect yourself from scamsDo not respond to calls or texts from unknown numbers or any others that appear suspiciousNever share your personal or financial information via email, text messages, or over the phoneBe cautious if you're being pressured to share any information or make a payment immediatelyDo not click any links in a text message. If a friend sends you a text with a suspicious link that seems out of character, call them to make sure they weren't hacked ................
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