DOJ Announces Arrest of $5.9 Billion Covid Relief Botnet Scheme

In a significant breakthrough in the fight against cybercrime, the Department of Justice (DOJ) has announced the arrest of 35-year-old YunHe Wang, a Chinese national allegedly responsible for orchestrating a global malware network. This network, known as "911 S5," was purportedly used to steal $5.9 billion in Covid relief funds and was tied to other criminal activities, including child exploitation and bomb threats. 

Unraveling the Web of Corona Fraud: How Scammers Exploited the Pandemic

The COVID-19 pandemic brought unprecedented challenges, not only in terms of public health but also in the realm of fraud. As the world grappled with the crisis, unscrupulous individuals and organized criminal networks seized the opportunity to exploit the situation for personal gain. In this article, we will delve into the insidious world of "Corona Fraud" by examining the various schemes and scams that emerged during the pandemic, backed by information from reliable sources such as the SMP Resource Center, NBC News, the House Oversight Committee, the Associated Press, the Department of Health and Human Services (HHS), and the U.S. Department of the Treasury.

Top 10 Coronavirus Scams

Be on the lookout for and be wary of potential COVID-19 scams and abuses. Any information, complaints, or concerns can be reported to a public regulatory agency.  Its hard to determine which one but here are few FTC, FBI, Dept of Justice, US Attorney's Office, Homeland Security.  Not sure how all of these agencies or coalitions work together but someone they get the bad guys.  

Top 10 most common scams and frauds include: 

• Economic Impact Payment (Stimulus Check):  Scammers pretend to be government officials offering false economic impact payments (stimulus checks) in order to obtain personal identifying information including social security and bank account numbers.

• Diagnosis Testing Scams: Scammers offer fake COVID-19 testing kits, particularly door-to-door.

• Treatment/Cure Scams: Scammers offer fake or unproven treatment regimens that are particularly dangerous because they have the potential to do more harm than good.

• Charity Scams: Virtually every time there is a disaster or emergency, scammers set up fake charities to solicit donations that they then spend on themselves.

• Overinflated prices: The Coalition will use every tool available to hold sellers accountable who unlawfully use the COVID-19 pandemic to unreasonably inflate prices.

• Investment Scams: Scammers make false claims about tests, cures and other matters related to COVID-19 in order to entice victims to make investment decisions based on those false claims that allow the scammer to steal money and assets from Delawareans.

• Email Scams: Scammers send victims emails related to COVID-19 that appear to be from the victims’ banks, health care providers, the World Health Organization, the Centers for Disease Control and Prevention (CDC), and others for the purpose of obtaining the victims’ personal identifying information and exploiting it for the scammers’ own benefit.

• App Scams: Scammers are creating and manipulating mobile apps designed to track the spread of COVID-19 to insert malware that will compromise users’ devices and personal information.

• Insurance, Workers’ Compensation and Medicaid Fraud: Businesses and government agencies are not immune to scams. They should also be vigilant to ensure scammers do not take advantage of their businesses or customers during this pandemic.

• Scams specifically targeted at seniors: Seniors are more vulnerable than ever to common scams like the Grandparent Scam and Government Imposter Scams.  Consumers receiving a call or any contact claiming that loved ones are in danger or hurt, that they owe money and failure to pay will result in their arrest or other harm, or that their benefits are in jeopardy, do not act. Contact your loved ones or the purported agency using known, trusted contact information not sourced from the suspicious communication.

Coronavirus Payments Are Vulnerable To Fraud

The IRS system for sending out Coronavirus relief payments is vulnerable to fraud, especially with regard to some of the nation's poorest people, according to tax and cybersecurity experts.  Brian Krebs, editor of Krebsonsecurity.com, was among the first to notice that fraudsters could potentially steal these Coronavirus payments with only a few pieces of identifying information.

"I was a little shocked to see that," Krebs told NPR. "There were a number of things that they requested, but very few things that were required. And the only thing that I could tell that were required were name, date of birth, social security number, address — and then you had to have a phone number... That was pretty scary to me."

"There were 390,000 cases that the IRS inspector general found of fraudulent access to that system," Chapple says. "So now fast forward five years and we're using an even weaker system to control access, not just to information, but to payments."  Read the full article here. 

4 Tips for Avoiding a Coronavirus Stimulus Payment Scam

We know there’s been a flood of information and updates about the government’s economic impact payments, or so-called stimulus checks, lately. But quickly and safely moving massive amounts of money into the hands of those who need it is a big job with a lot of moving parts.

1. Only use irs.gov/coronavirus to submit information to the IRS – and never in response to a call, text, or email.
2. The IRS won’t contact you by phone, email, text message, or social media with information about your stimulus payment, or to ask you for your Social Security number, bank account, or government benefits debit card account number. Anyone who does is a scammer phishing for your information.
3. You don’t have to pay to get your stimulus money.
4. The IRS won’t tell you to deposit your stimulus check then send them money back because they paid you more than they owed you. That’s a fake check scam.

Report scams to the Federal Trade Commission at ftc.gov/complaint.

To keep up with the latest scams, sign up for the FTC's consumer alerts.

Who will get money?

Adult U.S. residents that meet established income limits are eligible to receive money from the government. This includes:

Taxpayers – people who filed a federal tax return for 2018 or 2019.

Retirees – people who get Social Security, Railroad, or other retirement benefits.

Beneficiaries – people who get public benefits like SSDI, disability, or veterans’ benefits.

Non-filers – people who do not have to file a federal tax return, including people who made no income or made less than $12,200 (or $24,400 for married couples).

What to do

Most people don’t have to do anything to get their money because the IRS will use the same payment method – direct deposit, Direct Express debit card, or paper check – used to send you your tax refund, Social Security, retirement, or other government benefits money. If the IRS doesn’t have your direct deposit information, you can go to the “Get My Payment” feature at irs.gov/coronavirus and let them know where to send your direct deposit.

If you don’t usually file a tax return, go to irs.gov/coronavirus to access the “Non-filer” portal and to figure out what, if anything, you have to do to claim your money.

To check on the status of your payment, you can now use the “Get My Payment” feature at irs.gov/coronavirus.

Seniors beware and also refer to this safety guide.