After an investigation conducted by the FBI San Antonio field office, the Department of Justice (DOJ) has initiated its first federal court action to fight fraud related to the Coronavirus. The historic enforcement action was filed in Austin, Texas, this week against a website offering fake vaccines. The government enacted a federal statute that gives federal courts the power to issue injunctions to prevent harm due to fraudulent consumer scams.
Attorney General William Barr had directed the DOJ to “prioritize the detection, investigation, and prosecution of illegal conduct related to the pandemic.”
Jody Hunt, the assistant attorney general of the DOJ criminal division, said her team is hyper-vigilant in stopping all fraud related to the Coronavirus, including investigating consumer identity theft, the delivery of malware, and consumer fraud.
“The Department of Justice will not tolerate criminal exploitation of this national emergency for personal gain,” she noted.
In court papers, the DOJ notes the operators of the alleged fraudulent website “coronavirusmedicalkit.com" were “engaging in a wire fraud scheme seeking to profit from the confusion and widespread fear surrounding COVID-19.”
The civil complaint also detailed the information published on the website, including fraudulent claims that the operators had access to World Health Organization (WHO) vaccine kits, which in reality do not exist. On the website, customers paid for their shipping costs of $4.95. However, in order to complete their purchase, customers would enter their credit card details on the site, which could lead to further illegal activity.
The action was launched under the anti-fraud injunction statute (18 U.S.C. § 1345), filed against an unknown defendant that has not been identified. The website domain hosting company NameCheap registered the fraudulent COVID-19 vaccine website on the anonymous defendant’s behalf.
US District Judge Robert Pitman issued a temporary restraining order that blocks the public’s access to the site. The DOJ is instructing Web domain registrars to be vigilant in shutting down websites that scam consumers who are being swindled due to their COVID-19 fears.
The FBI also weighed in on COVID-19 fraud and the vulnerability of consumers who are fearful of the virus.
“Fraudsters who seek to profit from their fear and uncertainty by selling bogus vaccines and cures not only steal limited resources from our communities, they pose an even greater danger by spreading misinformation and creating confusion,” said Christopher Combs, Special Agent in the FBI San Antonio field office.
The Federal Trade Commission has reported 18,235 COVID-19 related fraudulent instances since January 1, 2020. Total losses claimed by consumers as of December 2020 is $13.44 million.
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