Department of Justice Directed to Prioritize Investigation and Prosecution of COVID-19-Related Fraud
The Attorney General’s memo directs all United States Attorneys of each state and federal territory to “prioritize the detection, investigation, and prosecution of all criminal conduct related to the [COVID-19] pandemic.” The memo details that the DOJ has received reports of individuals and entities engaging in fraud aimed to capitalize particularly on the COVID-19 pandemic. The types of fraud and scams referenced include:
- Persons and business selling fake COVID-19 cures online;
- Phishing emails from entities posing as the World Health Organization (“WHO”) and Center for Disease Control and Prevention (the “CDC”);
- Malware, malicious websites, and apps that purport to share COVID-19-related information, but which are actually veiled tools to gain access to users’ devices and information, including for payment;
- Malware penetration of legitimate websites used to track the spread of and statistics related to COVID-19, which are of course heavily frequented given the need for up-to-date information; and
- Scams seeking donations for illegitimate or non-existent charitable organizations.
Just days after the Attorney General issued the memo prioritizing prosecution of COVID-19 fraud, the DOJ announced the filing of its first enforcement action against such fraud. On March 21, 2020, the DOJ filed a complaint and temporary restraining order in Austin, Texas against the operators of a fraudulent website (coronavirusmedicalkit.com), who were engaging in a wire fraud scheme purporting to provide WHO vaccine kits in exchange for a shipping charge. The website was shuttered immediately pending a final determination of the case.
The DOJ anticipates scams and other fraudulent efforts designed to capitalize on the widespread confusion, fear, and misinformation relating to COVID-19 will increase in frequency and methods.
The DOJ has advised that if you think you or your business are a victim of a scam or attempted COVID-19 fraud, you should:
- Contact the National Center for Disaster Fraud Hotline at 866-720-5721, or via email at firstname.lastname@example.org;
- Report it to the FBI at tips.fbi.gov;
- If it is a cyber scam, submit your complaint throughhttps://www.ic3.gov/default.aspx
If you believe you need legal advice as a victim or as a business whose activities are affected in any way by COVID-19, or the contours of the DOJ’s new prioritization of COVID-19-related conduct, feel free to reach out to Terree Bowers, Lynn Fiorentino, Douglas Hewlett Jr., or the Arent Fox attorney who regularly handles your matters.