COVID-19 scams may increase due to ongoing vaccine search
A report I read said that researchers worldwide are working on more than 165 vaccines for COVID-19, with 26 having advanced to human trials. Headlines report promising results and many experts expect a vaccine to be available by early 2021.
Crooks follow the headlines and have already started peddling non-existent vaccines. It’s likely they’ll ramp up their efforts as we get closer to actually having one.
The Department of Justice (DOJ) took its first Covid-19-related enforcement action in March against the operators of the website “coronvirusmedicalkit.com.” The company claimed to offer free access to a World Health Organization vaccine kit in exchange for a shipping charge of $4.95. It appears the intent was to steal victims’ identities and credit card information.
An ad for the kit included a picture of Dr. Anthony Fauci on a TV program and instructions for how to use it:
“You just need to add water, and the drugs and vaccines are ready to be administered. There are two parts to the kit: one holds pellets containing the chemical machinery that synthesises the end product, and the other holds pellets containing instructions that tell the drug which compound to create. Mix two parts together in a chosen combination, add water, and the treatment is ready.”
In June, the Washington State Attorney General settled a case with a fellow who sold a vaccine for $400 through his company North Coast Biologics. He claimed to have developed it in half a day and acquired immunity to the coronavirus after testing it on himself.
In July, DOJ shut down six related websites and a Facebook page that solicited preorders for a non-existent COVID-19 vaccine in exchange for $100 in Bitcoin. The company claimed to be located at an address in Louisville, Kentucky, that is actually an empty field. In settling the case, the owner admitted he’s not licensed to distribute a vaccine even if one existed and that he’s unaware if and when one would become available.
The Securities and Exchange Commission (SEC) ordered the suspension of trading in the securities of at least two companies because of questions about the accuracy and adequacy of claims regarding COVID-19 vaccines, or in one case a “Coronavirus (COVID-19) Prevention Products Line.” The other company claimed as early as March that it would have a vaccine available to the mass market within three to six months.
DOJ and the BBB advise that if a vaccine becomes available, you won’t hear about it for the first time through an email, online ad or unsolicited sales pitch.
Watch out for websites and email addresses that differ only slightly from official ones. For example, “cdc.com” instead of “cdc.gov.” Thoroughly research any investment opportunity.
Given the severity of the crisis being exploited, I’m disappointed these cases were all settled through civil actions. Someone should be in jail.
Randy Hutchinson is head of BBB of the Mid South.