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Corona Virus Recession Causes Sharp Rise in Fraud and Scam Cases

Posted On   date21/04/2020

Corona Virus Recession Causes Sharp Rise in Fraud and Scam Cases

The global lockdown is creating an economic downturn that could be especially deep and lengthy. As of this moment, the greatest damage is being caused by the uncertainty and economic damage caused by the quarantines and lockdowns in many countries around the world.  Even with most of the quarantine measures nearly over, most businesses have taken a major hit, and consumers have been faced with unemployment and decreased incomes.  We are now facing a global economic crisis and it may be extremely hard to overcome. But worse than that, the effects of the worldwide recession are yet to be seen. As governments continue to intensify the restrictions, thousands of business will be broke, millions of people will be unemployed and many of them will be doomed to poverty.

Professional international private investigators say businesses will not be able to resume their work and go back to normal until human interaction is considered safe again, and no one knows how long it will take for people to trust that again. The situation is unprecedented. Never before did the world have to face an economic crisis affecting so deeply every corner of the globe, at the same time.

History has proven that with economic crisis criminality increases.  This is a global standard and has existed since the beginning of civilization.  With poverty and decreased opportunity comes higher crime of nearly all types, including fraud. The rise of fraud and scams is not a surprise, as it is an expected outcome of the recession. Unemployment rates have skyrocketed. People in developed and developing countries will see investment fleeing away, plummeting many currencies and driving up inflation (thanks to central bank money printing), and making the cost of life even higher for everyone. In such conditions, crime is often survival. For some criminals, this chaos is not their survival but a chance to take advantage and make more money at the expense of people’s vulnerabilities.

The following are areas in which the cases of fraud are expected to rise.

Increased hacking and phishing attempts: Banks, government offices, and many companies are changing procedures. Fraudsters are taking advantage of the confusion to send fake emails pretending to be legitimate organizations and requesting login information. By the time people realize the email is fake, online criminals have already been able to access the accounts or information.  Be extra suspicious of email and links, and if you’re not sure, don’t open any attachment or click on any link.

Medical related fraud: There are two different sides to this type of fraud. For one part, online criminals will be using the health emergency to deceive people with false medical treatments and promises of vaccines. Fake charities requesting donations of medical safety equipment for doctors and nurses are already around too.  Also, there will be more fake insurance companies promising better coverage. Whichever is the case, verifying is the smart thing to do. A company background check investigation is important to find out if the company you’re dealing with is real and reputable.

Investment scams: Scammers will be convincing lots of desperate investors that this is the right time to invest. The promises of buying companies, land, properties and other assets at low prices during recession with great returns are tempting, but be careful! Most of these are bogus.

Dating scams: Strict social distancing restrictions are increasing the usage of online dating apps and websites. Social networks like Instagram and Facebook are also gaining a lot of new users, but many of those are just preying on their future victims. Romance scams are expected to continue to rise as many consumers around the world turned to online dating during quarantines and lockdowns.  As more people meet online, the risk for manipulation and scams are a major threat.   If you do not want to be part of the statistics, hire an online dating verification from a reputable private investigation company before proceeding in the relationship.  Protect your personal information and never send money.

Hopefully, once the virus is contained and over people will return to normal in a few months and economies will bounce back, but until then, be careful and proceed with caution.

Contact us for a free investigation quote if you need to verify a new business partner, a company, a charity or an individual you’ve met online or in person. We can help reduce your risk!

C. Wright
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