New FTC Report Reveals the Scale of Pandemic-Related Scams
Whenever a crisis like the COVID-19 pandemic hits, people often look to protect themselves by spending money on essential items. When the pandemic started last year, there was a sudden surge in demand for products like face masks, gloves, and hand sanitizers. Unfortunately, scammers took advantage of this increased demand to exploit unsuspecting individuals.
According to the latest findings from the Federal Trade Commission (FTC), Americans have fallen victim to COVID-related fraud, losing more than $545 million since the start of 2020. During this period, the FTC received close to 589,000 consumer complaints, with the majority being identified as fraudulent activities. The scams ranged from price-gouging to deceptive advertising. Many people reported instances of being overcharged for essential items like hand sanitizers and face masks when shopping online. Some individuals even received substandard or no products after placing orders for items like self-sanitizing gloves.
Scammers have bilked consumers out of $545 million in Covid-related fraud Criminals have ripped off hundreds of thousands of Americans since the start of the pandemic, according to the FTC. https://t.co/CoGrKtcj5j
— Mortgage Mat (@MortgageMat) August 31, 2021
It is important to note that the FTC’s report only captures complaints filed directly with them, indicating that the actual scale of COVID-related fraud could be much higher. With the pandemic confining people to their homes, online shopping saw a significant spike from early 2020. As not all consumers are wary of the risks associated with buying products online, many fell prey to fraudulent websites offering items that were hard to find through legitimate channels.
When COVID cases started declining in the summer, the desire for travel surged, leading to a rise in travel-related scams. Individuals excited to travel again were lured in by attractive vacation deals, only to discover that the airline tickets they purchased were fake, leaving them stranded as the fraudsters disappeared.
