FTC Warns Of COVID Scams, Cracks Down On Fake Job Schemes

The Federal Trade Commission (FTC) has announced a new operation, Operation Income Illusion, to crack down on fraudsters targeting victims with fake promises of jobs or income, according to a press release.

The FTC is working with 19 other federal, state and local law enforcement partners in the effort. The release stated these types of scams, which “have no basis in reality,” have intensified and grown in scope since the pandemic, which has resulted in millions of people losing their jobs due to pandemic restrictions.

Operation Income Illusion will target over 50 law enforcement actions against those operating “work-from-home and employment scams, pyramid schemes, investment scams, bogus coaching courses” and other such scams, which the release stated can cost consumers thousands of dollars.

A recent FTC analysis of customer data found that customers have reported losses of $610 million to these kinds of scams since 2016, with the number sitting at around $150 million for the first nine months of this year, according to the release.

Scams investigated in this particular sweep have netted over $1 billion from victims, the release stated.

“Scammers are preying on the unemployment and anxiety arising from the pandemic by making false promises of big income working from home,” said Andrew Smith, director of the FTC’s Bureau of Consumer Protection, in the release. “If someone promises you guaranteed income, but then tells you to pay them, tell the FTC right away so we can work to shut them down.”

Fraud during the pandemic has been especially prolific because of the chaos created so quickly early on. As people and companies tried to shift quickly to a new, mostly digital way of life, fraudsters pounced on the uncertainty to try to reap the benefits. A study over the summer from SocialCatfish.com found that losses from pandemic-related fraud and identity theft had reached almost $100 million since the pandemic began in March.