A state-federal task force will look into virus-related fraud.
Over 1,000 complaints filed in state over scams, price gouging and more
State and federal officials in Connecticut have formed a task force to address COVID-19-related fraud, such as price gouging, health care and government program fraud, consumer and small-business scams, lending scams, charities fraud and cyber fraud.
U.S. Attorney John H. Durham, state Attorney General William Tong, Chief State’s Attorney Richard Colangelo and FBI Special Agent in Charge David Sundberg announced the joint federal-state task force Wednesday, saying violators may be subject to civil fines and penalties and state or federal criminal prosecution.
“The Justice Department is prioritizing the investigation and prosecution of COVID-19 fraud schemes and individuals who are exploiting this public health crisis for personal gain,” Durham said in a news release. “Our office has a dedicated COVID-19 Fraud Coordinator who is working closely with our state counterparts in the offices of the Attorney General and Chief State’s Attorney to review complaints and direct the prosecution of COVID-19-related crimes.
Working together, we will disrupt these schemes and are prepared to prosecute those who seek to prey upon people’s fears or sympathy and illegally profit from this pandemic.”
The Attorney General’s Office has received more than 1,000 complaints of price gouging, scams and other schemes, according to Tong, who said investigators are following up on every complaint.
“To those who seek to use this crisis as an opportunity to cheat, scam and defraud — stop,” Tong said in a news release. “The Office of the Attorney General is working hand in hand with our state and federal enforcement partners to aggressively investigate and prosecute COVID-19 related misconduct.”
“We at the FBI are fully committed to this multi-agency Task Force and pledge our resources to combating those attempting to take advantage of Connecticut residents during this vulnerable time,” Sundberg said in a news release.
The task force members
highlighted the following areas of concern:
Stimulus check scams: The federal government will never charge fees or ask recipients to pay money to receive a check. The federal government will never call to ask for a Social Security number, bank account or credit card number.
Charities fraud: Donors should check the facts and get accurate information from a reputable source before making a donation and should not fall prey to pressure tactics.
Price gouging: During civil preparedness and public health emergencies, price gouging is against Connecticut and federal law. Price gouging or profiteering means increasing the price of an item for sale by more than could be justified in the ordinary course of business market fluctuations.
Hoarding and personal protective equipment, or PPE, procurement scams:
Designated materials are subject to hoarding prevention measures under an executive order by President Donald Trump and the Defense Production Act.
Phishing, spoofing and
cyber fraud: The task force warned Connecticut residents of widespread COVID-19-related cyber fraud, including phishing attempts via email and text messages regarding COVID-19 assistance and related aid. The task force advises consumers not to click on links in unsolicited emails, be wary of electronic communications purporting to be from the Centers for Disease Control and Prevention or the World Health Organization, and be on alert for messages that request personal information in exchange for benefits or relief. Health care and government program fraud: The attorney general’s Antitrust and Government Program Fraud Department is taking steps to ensure that the Connecticut Medicaid program is protected from scammers who may try to take advantage of newly implemented policies, including submission of false claims for telehealth medical services. Small-business loan fraud
schemes: Small-business owners should be wary of scammers charging up-front or excessive
fees to secure U.S. Small Business Administration loans or offering high-interest bridge loans. Scammers sometimes target businesses through email phishing schemes using SBA or bank logos. Mortgage and student
loan relief scams: Borrowers having difficulty making their monthly mortgage or student loan payments should be wary of scams promising bogus relief and should contact their loan servicers directly to seek relief.
Connecticut residents may report COVID-19-related fraud to the task force by contacting the Office of the Attorney General by emailing attorney.general@ct.gov or calling (860) 808-5318.
Individuals also may report such fraud to the Department of Justice’s National Center for Disaster Fraud hotline at (866) 720-5721 or by visiting justice.gov/disastercomplaintform. More information on the Justice Department’s coronavirus response effort is available at justice. gov/coronavirus.