Arizona Attorney General Mark Brnovich and United States Attorney Michael Bailey announced the formation of a joint federal, state, and local task force to combat coronavirus-related fraud.
According to a release, the COVID-19 Fraud Task Force brings together a dozen partners from across the state, with the goal of combining resources and information to better investigate and prosecute wrongdoers that seek to profit from the public health crisis.
The mission of the Task Force is to streamline the government’s response to reports of fraud related to COVID-19 in Arizona, the release states. By working together across all levels of government, the Task Force hopes to ensure cases are investigated promptly and brought to the appropriate prosecuting entity. In the midst of the current crisis, members of the Task Force will work together and share information to better protect Arizona citizens by ensuring all scams are investigated and those responsible are held accountable.
"It’s not surprising con artists are taking advantage of headlines and exploiting COVID-19 concerns and anxieties of consumers," Mr. Brnovich stated. "The Attorney General’s Office is here to serve Arizonans and is working around the clock to combat fraud, but we can't do it alone. The launch of this new COVID-19 Task Force with our federal and local partners will maximize our resources and help ensure we are prepared to combat new and evolving consumer threats."
Joseph Sciarrotta, Civil Division Chief for the Attorney General’s Office, and Assistant United States Attorney Jim Knapp, recently appointed as the United States Attorney’s Office COVID-19 Fraud Coordinator, are leading the Arizona COVID-19 Fraud Task Force. Other members of the Task Force include the Maricopa County Attorney’s Office, the Federal Bureau of Investigation, the Food and Drug Administration, the Internal Revenue Service Investigation Division, Health and Human Services, the United States Postal Inspection Service, the Treasury Inspector General for Tax Administration, the United States Secret Service, the United States Army Criminal Investigation Division, and the Defense Criminal Investigative Services.
“In times of crisis, the best of humanity is often evident as people support one another and unite together to fight a common enemy. We see that in today’s stories about our health care workers, our first responders, and our communities sacrificing safety and comfort to protect one another," Mr. Bailey stated. “Unfortunately crisis can also be a time when the worst parts of humanity surface. This Task Force will seek out and punish scam artists who prey on the fear and uncertainty of our citizens during this public health crisis.”
"We are committed to aggressively pursuing bad actors who are utilizing the COVID-19 pandemic to commit cyber, financial, and healthcare fraud, including withholding critical supplies from our citizens, healthcare workers, and first responders," stated Sean Kaul, Special Agent in Charge of the FBI Phoenix Field Office.
In recent weeks, stories of fraud related to the coronavirus have increased across the nation, according to the release. In times of uncertainty, consumers are often more vulnerable to fraud as they seek answers and a sense of security. Fake texts, emails, and social media posts that might normally be ignored, may now be enticing if they offer COVID-19 tests, miracle cures, medical products, or financial windfall.
On April 6, the FTC reported it had received almost 12,000 consumer complaints related to COVID-19 in just three months. Over half of those complaints were fraud-related, with a total loss to consumers of $8.39 million, according to the release.
The Arizona Attorney General’s Office has also experienced a spike in COVID-19-related consumer fraud complaints. The office already sent cease-and-desist letters to local businesses (YiLo Superstore Dispensary and Prepper’s Discount) that were offering COVID-19-related products alleged to be in violation of the Arizona Consumer Fraud Act. The latter has denied being in violation, according to a report from Phoenix New Times.
To help keep Arizonans informed of the latest scams and to provide tips to consumers, the Attorney General's Office recently launched a COVID-19 scam information page.
In light of these reports, Mr. Brnovich and Mr. Bailey offer the following consumer tips to protect against COVID-19 fraud:
If you believe you have been a target of a coronavirus-related scam, or know someone else who has been, report the fraud. Reports can be made to the Task Force at: