Corona Refunds Scam
The COVID-pandemic disrupted economies and societies all over the world. As people emerge from pandemic restrictions, the scale of the crisis is still being felt. As of May 2021, the FTC reported 500,000 complaints about corona scams, many involving stimulus checks, and tax refunds.
The most pernicious aspect of these frauds is that they take advantage of people who are already vulnerable. Many people were left unemployed or underemployed because of closures caused by the pandemic. Stimulus checks and corona refunds were designed to help them. Because of their desperation, more people were taken advantage of by forex trading scams as well as corona refunds scams.
It is important to file a complaint with authorities if you have had your stimulus check stolen through identity theft or have had your computer infected with malware after clicking a link that was supposed to help you with a corona refund. Avoiding a defeatist attitude is essential and doing something will help yourself and other potential victims.
Broker Complaint Registry is the right place to turn when you have lost money in a corona refund scam, crypto scam or forex trading scam. We consult with clients and refer them to experts who can pursue their case in detail and work to investigate the scam, and in many cases, succeed in fund recovery. Talk to us today, and we can provide guidance on how to deal with the claim.
The Problem of Corona Refund Scams
Governments across the world provided stimulus checks and direct deposits to their citizens as well as tax refunds to individuals and small businesses. However, corona refunds scams sprung up and exploited these programs by stealing benefits. In the US. alone, in 2021, citizens have lost $433 million in these corona scams and the numbers are rising.
The problem will be ongoing as people claim stimulus checks they may not have received the first time around because of delays or changing addresses. As Americans file their tax returns, they may be awaiting their refunds only to have them stolen by cyber criminals. This is done by criminals who commit identity theft, take the information directly from the victim or provide a fake service to fool them.
What Are The Types of Corona Refund Scams?
Unfortunately, there is a multitude of Corona Refund scams. Like forex trading scams, many of them are intended to provide fake services or to steal information. People think they are getting assistance when in the end, they realize they have been robbed.
Fake Corona Refund Services
People may see ads or posts on social media or receive emails, calls, and texts from services claiming to help people get their stimulus checks or corona tax refunds. They may even claim that it is not necessary to file a tax return first, which in the case of refunds, is blatantly untrue.
However, people who are in a hurry to get corona relief may decide the risk is worth taking if the service can get them some funds in a short time. These are almost always scams. One clue is that their aggressive advertising tactics, and that they often rely on spam emails and cold calling to try to get clients.
If you need assistance getting your refund or stimulus, contacting government offices directly or a licensed accountant is the safe method. There may be legitimate accountants who will advertise their services on social media, but they will not ask for funds upfront or make extravagant claims.
Identity Theft and Corona Refund Scams
One of the most devastating examples of a corona refund scam occurs when cybercriminals steal personal information and end up claiming a tax refund or stimulus payment by pretending they are the rightful recipient. The victim may not realize what has happened until they try to claim their benefits and find they were already claimed.
Identity theft can occur when someone steals personal information through phishing, malware, or simply going through your mail. It is a major problem that can be traumatic. Fortunately, services like Broker Complaint Registry helps people recover from identity theft.
Phishing Corona Refunds Scams
Phishing means getting information from people that can be used for identity theft. This is through phone calls, fake emails and texts, and scam websites. You may get a call or an email that claims to be from a government office and they may ask you to verify your information so they can send your benefits to you.
People who are otherwise careful about cyber scams can easily fall for phishing scams. Scammers often have the technical abilities to create a convincing email or website that is a decoy of the real thing. Others have mastered a perfect phone manner and persuade people to surrender their private data.
If any organization or payment platform asks you to confirm your data, do not click on a link but contact them directly on their actual website or phone and ask if they communicated with you. If the communication was a scam, tell the service or organization that the fraud is occurring.
Pump and Dump
Pump and dump strategies are outlawed, but they still happen. This occurs when a fake broker holds a devalued asset and encourages clients to buy it. When clients buy, the asset rises in value. When it reaches an ideal level, the broker will sell his or her own holdings.
In some cases, these holdings are substantial and will devalue the client’s investments. The clients may have no idea their brokers have made these trades because unscrupulous brokers do not make their holdings or trading activity public. Consumers should be aware that all brokers must disclose their own holdings to prevent pump and dump scams.
Select a CFD broker with the following:
- A license from a top-tier regulator
- Transparency about all fees
- Accurate, verifiable contact information and address
- Strong communication
- Realistic claims
- A strong reputation
- An advanced trading platform
- A reasonable withdrawal policy
Corona Trading Scams
There is always a trade you can make to benefit even from dark times. The same is true of the corona. Forex trading scams take advantage of currency fluctuations caused by the pandemic. Some corona scams claim to be brokers who will trade penny stocks that are likely to increase in value because of the pandemic.
These can, like forex trading scams, be entirely fake brokers who simply pocket the money. They can also be pump and dump scams in which actual trades are made, but they benefit the broker, not the client. The broker may hold undervalued stocks and pressure clients to trade the same asset. When it rises in value, the broker will dump their holdings and devalue the holdings of their clients.
This is only a partial list of the varied corona refund scams that are still occurring. If you have suffered from corona refund scams, don’t go it alone. Enlist the aid of Broker Complaint Registry to provide guidance on the road to fund recovery.
Do You Need Assistance with a Bitcoin Forex scam? Broker Complaint Registry Will Help
Contact Broker Complaint Registry experts if you have lost money in a bitcoin forex scam. We deal with a variety of issues, including data theft, broker scams, and crypto complaints. Our team will refer you to experts who have vast experience dealing with regulators, banks, and law enforcement. We will provide advice and give you valuable guidance to help you resolve the issue.
Have You Lost Money in a CFD Scam or Crypto Scam? BrokerComplaint Registry Will Help
It can take some time to research a broker to ensure that they are the right choice. CFD scam brokers may post fake addresses or claim they have a license when they do not or are bolstered by fake testimonials and self-generated reviews. Invest the time to do searches to confirm all of the information on the site and ensure all fees, spreads, commission, and withdrawal information is clearly stated.
