Tag: Scams

The COVID-19 Fraud Storm Continues…

When we think of fraud due to the COVID-19 pandemic, we think of individual people committing fraud. After all we are only too familiar with workman’s comp insurance scams & most recently, employee fraud. We have discussed in a previous blog post how one Fortune 500 company had a loss of over $100,000.00 after an employee falsely said they were tested positive for COVID-19.

The story now continues with business fraud. Small businesses across the country have been nearly put out of business due COVID-19. Many have been able to stay afloat from government PPP funding. However, some are sadly starting to take matters into their own hands.

What the Experts Predict

Data analytics provider Verisk has alerted folks that COVID has created opportunities to commit medical billing fraud and abuse. In April, the company said its data reported a 14% increase in claims linked to suspicious billing practices.

Verisk said its Insurance Service Office MedSentry team has identified several COVID-19 medical billing schemes. Among them:

  • Unlisted lab tests. There was no specific ICD-10 code for COVID-19 until April 1. Prior to then any COVID-19 tests were likely coded as “unlisted laboratory tests.” Claims for a patient who has received both an unlisted laboratory test and a COVID-19 test may be cause for scrutiny.
  • Hands-on therapy charges. Many providers eliminated in-office visits and began to offer telehealth sessions. Verisk said bills for hands-on therapies such as chiropractors, physical therapists, and massage therapists should be examined.
  • Unnecessary durable medical equipment. Insurers should be wary of misleading claims for gloves, face masks, thermometers, and similar items, especially for patients who have not been tested for COVID-19 or have tested negative, Verisk said.

Social Media Monitoring

Work is being done to create a software that allows the user to find unapparent connections between all people in a claim to uncover potential scams. While it has a way to go in development, if created, it would be an excellent resource to help investigators identify potential scams and link the culprits.

Google Search – Trending

Google searches can be very revealing and a good indicator of what people are thinking of doing. The question, “How to Burn a Car” has increased 125% since January of this year.

setting car on fire

Not surprising, Google is showing some strong trending in Employment Fraud. The graph below shows Google trends over the last 90 days.

We will continue to report our findings during the pandemic.

Craigs List Fraud & Scams

Unless you’ve been hiding under a rock you have heard of Craigslist.

Craigslist is a great resource for selling things, finding apartments and jobs, locating services and meeting people. Most of the time transactions go smoothly and both seller and buyer are satisfied with the Craigslist experience.

But lately more and more people are being scammed on Craigslist losing money and, in worst case scenarios, putting themselves in danger.

To help keep yourself safe from scams, Craigslist advises that any business dealings be done with people in your own local area. Don’t do business with folks who live far away. Also look for listings with poor grammar and misspelled words. Beware of anyone offering more than what you asked for. Why would someone do that? Especially since Craigslist is known as the place to go for good deals.

Below are some of the most common Craigslist scams and how can you avoid them.

1) Nigerian or Foreign Country Scams

If you receive an email with very specific criteria…it’s more than likely a scam. Most will offer more than your selling price if you accept their check or money order. And if the buyer or seller tries to pay you with a money order or wire transfer — take that as a big, waving red flag. 

Scammers over the years have developed pretty sophisticated-looking fake packing slips or even money orders claiming to be from trusted institutions like Western Union. Often, these scams are part of a Nigerian 419 scam, and could entice you to send the buyer your goods before the fake check or money order clears. To avoid getting duped, don’t accept money orders on Craigslist and, if you must use a check, make sure it clears before sending what was bought.

2) Fake or Cancelled Tickets

Ticket scams are among the more common scams on Craigslist. My husband was actually a victim of this. Savvy scammers have been able to make fake tickets that look real to big events like concerts or sports games. According to WiseBread.com, some scammers have even replicated holograms and watermarks on tickets for concerts or events — and these tickets are either fake or already cancelled – setting you up for a big disappointment. To avoid the headache, only go through reputable sites like Ticketmaster or the actual venue.

3) Non-Local Ads

In general, whenever an ad is not local, it’s generally not a good idea to pursue it. If someone posts a non-local ad they usually won’t be able to meet up with you and will often require transferring money through some online platform (which is a red flag!).

While there are certainly some precautions that should be taken when actually meeting and conducting a transaction in person (such as meeting in a public place or bringing a friend with you), some people that are unable to meet in person (or refuse to) could be scammers on the site. 

4) Fake Craigslist Site

Yes, you can accidentally land on a fake Craigslist site. Scammers often use similar domain names in hopes of snagging internet searches from the real Craigslist site and convincing users to trust the fake ones. Some of these sites look very realistic and could cost you a lot of money. Rule of thumb: if any Craigslist site does not have the address http://www.craigslist.org, it’s fake. 

5) Scam Email from PayPal

Some scammers may use PayPal (or the promise of PayPal) to send or receive money on Craigslist. PayPal actually warns people to be wary of ads that want to use the site for transactions because many of them may never follow through or send you a fake PayPal email confirmation of a payment. Warning signs include emails that don’t address you by your full name or a statement that money is being held until you perform some action (like sending money through another wire service or using links to tracking orders).

6) Lured to a Mugging

This is a really nasty scam, and we could all fall for it quite easily. It’s also known as “robbery by appointment.” As a Craigslist seller, you will know that cash reigns supreme. You don’t want to deal with bounced checks. Craigslist scammers will place an ad for something like a car, high-end electronics, or another product of significant value. So you arrange to meet the seller (with a large amount of cash), and that’s when you’ll be jumped and the money taken from you. This “lure” scenario has happened many times over the years, which is why Craigslist advises you to meet in a safe, secure location, go with a friend (or two), and if in doubt, back out.

If you happen to see something on Craigslist that looks fishy, send an email to [email protected] and give them as much detail as you can about the listing. Make sure you include URL (or 8 digit post ID number) in your email. If you’re selling something and you think a con artist has expressed interest, forward it to [email protected]. Be smart, be aware and if in doubt ask your friends or someone with internet savvy what they think if something just doesn’t seem right. If it sounds too good to be true, it usuall