Federal, state authorities warning about coronavirus-related scams, price gouging
INDIANAPOLIS (WISH) — Some people are trying to use the COVID-19 crisis to their advantage, to defraud people of money. Any time there is a crisis, whether it’s a financial or a natural disaster, federal and state authorities say scammers increase.
Warnings at the federal level
One of the big concerns right now is federal stimulus payments of $1,200 or more. The Internal Revenue Service is worried people will try to get their hands on your check. They say the IRS will never call, email or message you on social media to get your information for the payment. You’re going to get the payment directly into the bank account information you last gave them, or in a paper check to the address they have on file.
Despite what a scammer might say, there is nothing you can do to speed up the processing of those funds. Anyone saying you can pay a fee to get your check sooner is trying to scam you.
Another thing to watch out for are fake charities.
“It’s very common that we’ll see people saying they’re a charitable organization and asking for money, donations,” said Josh Minker, United States attorney for the United States District Court for the Southern District of Indiana. “In times of crisis, people are very generous. They want to help. It’s one of the great things about Indiana, about this state, about this country. People hear about crisis and they’re like, ‘Where can I send my money?’”
Make sure you perform a background check on any charity asking for money and do not let them pressure you into a donation on the spot. Other scams to watch out for: fake tests and cures, phishing emails posing as health authorities, robocallers selling supplies and investment fraud.
Warnings at the state level
Indiana Attorney General Curtis Hill’s office is cracking down on price gouging.
They are looking for price gouging cases — a significant increase in the price of an item where the increase can’t be explained for a real business reason — which fall under a violation of the Indiana Deceptive Consumer Sales Act.
Betsy Denardi, director and chief counsel of the Consumer Protection Division of the Indiana Attorney General’s Office, said the division is getting a lot of reports of price gouging on paper towels, toilet paper, cleaning products, hand sanitizer and even some food products. Judging from the complaints they’ve seen, the price gouging can happen anywhere.
“Most of the complaints that we’re receiving relate to a specific business, whether it’s a large business, a national chain, or a one small seller grocery story or convenience store,” said Denardi. “And then we’re also seeing complaints related to third-party sellers on platforms like Amazon or Craigslist or eBay or any of those types of platforms.”
If a price is higher because the business is passing along their increased cost to you, that’s OK, and the Attorney General’s Office wants to know so they can let other shoppers know. If they can prove it’s a case of price gouging, Denardi said they will consider filing a lawsuit.
If you see a price much higher than normal, submit a complaint that includes the price, your receipt and any photos you took.