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Americans had spent $382 million for Covid Related Fraud

According to the Federal Trade commission fraud linked to the Covid pandemic has cost Americans $382 million. More than 2,17,000 people filed a fraud report related to coronavirus. The median loss was $ 330.

The number of losses was higher for seniors. Nearly $500 for people in their 70s and $900 for those in their 80s. Various avenues like financial relief like stimulus checks and unemployment benefits, fake treatments for Covid-19, and fraudulent charities were used by the criminals to collect money from unsuspecting Americans. The Consumer Financial Protection Bureau fielded 542,300 complaints in 2020 this is a 54% increase over 2019.

Lucy Baker, a consumer defense associate at advocacy group U.S. PIRG said that people were frightened about their health and finances, and criminals used this as an opportunity to rob money. This started from the beginning of the pandemic. Nearly 3,000 complaints were filed using the keyword coronavirus in April 2020. Credit and consumers are reporting complaints representing more than 58% of overall complaints, followed by those related to debt collection (15%), credit card (7%), checking or savings (6%), and mortgages (5%). Not all these complaints were necessarily related to Covid.

Another avenue of crime was impersonating and collecting the unemployment benefits during the pandemic. Dave Uejio, the CFPB’s acting director Said that pandemic has greatly impacted the lives of people. The greatest impact can be seen in the consumer financial marketplace.

Nearly 60,000 Americans reported that somebody impersonated them and has collected the unemployment benefits. Currently, the trap is Covid 19 vaccine. The common cyber scam is an early access vaccine. Fake people send emails, texts, and phone calls claiming that they can offer vaccines before the official government sources.

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