Fraudulent rental listings, a COVID-19 clinical study that pays upwards of $1,000, consultants offering services to those confused by COVID aid programs, a government agency asking for a refund of an “accidental” overpayment — these are some of the most popular schemes that fraudsters have taken advantage of during the pandemic to target people’s financial worries in 2020.
Indeed, the Federal Trade Commission (FTC) reported losses from scams have climbed to nearly $117 million during the first six months of the pandemic, compared to 2019, where the total reported loss was $134 million. Coronavirus-related scams, in particular, have cost Americans $13.4 million so far this year, and the internet is the hotspot for it. According to the FTC’s Consumer Sentinel Network reports, losses from social media scams have tripled, with a sharp spike in the second quarter of 2020. The increase corresponds with increased internet usage that started with the early March lockdowns and has only grown since.
Another platform that has received more reports of illegal schemes and fraud is the Better Business Bureau’s (BBB) online Scam Tracker.
“We have seen an increase in online scams reported via bbb.org/scamtracker, and that is for both people that have been victims of a scam or people that are aware of scams transpiring in their area,” said Paula Fleming, chief marketing and sales officer for the Boston BBB.
Fleming noted that the latest scam is surrounding the underway trials as companies race to find effective vaccines and treatments for COVID-19. Although some studies are legitimate, the fraudulent ones target people through texts, promising $1,000 in payment for participation. By redirecting users to a website and asking for identifying information, the scammers could download malware onto your computer or collect this information for use in future phishing attacks.
Scammers frequently utilize pretending to be a researcher or government official as a common tactic. They have made such phone calls and texts in Chinese and other languages, possibly targeting specific racial or immigrant demographics. Fleming said she personally has not received reports of these scams, but said that Chinatown might be unaware of the BBB as an outlet to report scams.
One scam that was prevalent in August was an imposter call from someone pretending to be from the U.S. Immigration and Customs Enforcement agency. In the call, the scammers often tell the victim their immigration status is being revoked, and the police are on their way to arrest or deport them unless they pay right away.
Massachusetts Attorney General Maura Healy said their office put out an advisory in multiple languages, hoping to “reach communities of color to make sure we were getting them information in a language accessible to them.”
The pandemic has opened an opportunity for scammers to revamp pre-existing schemes and techniques in the rental market as well. A quick Google search will tell you that being told an apartment is not available for viewing before renting is typically a glaring red flag for a rental scam. But during a global pandemic, this practice is common. When traditional safeguards, like in-person viewings, are limited, it becomes significantly more difficult for people to validate listings.
After people started browsing for September leases, Healy received several complaints from prospective tenants about false website listings using real photos and management contact information. Through these ads, scammers took people’s deposits and redirected their complaints to the provided contact information of an actual broker or management company on the listing.
Greg Vasil, the CEO and President of the Greater Boston Real Estate Board, was made aware of this scam through the brokers’ perspective. “We got contacted by some of our broker members that people were calling them up, and they were irate because they said, ‘Hey, I sent you a deposit for this apartment. What’s going on?’” he explained. “They were stealing the information from the listing, putting it online, putting it out there, and people were sending the money. But it wasn’t to the actual owner. It was basically a scam.”
“I can’t believe this, but this is what’s going on. And it’s an old trick, but the new twist was COVID,” Vasil added. Healy cited a combination of reasons for the rise in the prevalence of these scams. She said, “In-person viewings have been more limited or less possible, so people are turning to websites more. And it’s certainly true that people are having economic hardship and may be looking for ways to find housing, without going through a broker and having to pay the broker’s fee.”
In response, the Attorney General’s Office and GBREB partnered to issue an advisory in September, warning the public about the apartment leasing scam. The advisory offered guidance on avoiding falling victim and ensuring listings are valid during this time, such as encouraging thorough inspection of the apartment, not disclosing social security or PayPal information, and reporting fraudulent ads.
“We directed people to file complaints with the FBI’s Internet Crimes Complaint Center. So, the FBI may have heard from people. We haven’t received additional complaints since issuing the advisory. Maybe the advisory helped get the word out to people,” Healey updated.
Although Healey said they have not received an uptick in scam calls in the months since, she still strongly recommends following the guidance and filing a fraud report if anyone falls victim. “I think it’s a good point that some people may be embarrassed that they ended up scammed, but I would tell them don’t be embarrassed. Call my office. Report scams. Report it to the FBI internet crimes division as well,” she emphasized.
For COVID-related financial scams, Fleming advised that the specific steps you need to take depend on the nature of a particular scam, stating, “In some cases, it would be contacting the police department. In some cases, it would be simply letting bbb.org and your community know via the scam tracker, and in other cases, it would be telling the local, state government agencies, the Attorney General’s Office.”
To read this article in Chinese (Traditional), please click here.
