This brief overview describes how criminals can leverage certain consumer scams during the COVID-19 (Coronavirus) outbreak / shutdown

1. Protecting the Flock:
Consumer Scam Migration Due to
COVID-19 (Coronavirus)
Protecting
The Flock
As the effects of COVID-19 (Coronavirus) continue to play out in our lives, it creates a new and exciting
environment for criminals to thrive in. One of those ways is to target others through scams. This overview
details three scams that should gain prevalence in the coming months (Loan Scams, Work-from-home Scams,
and Charity Scams).
Understanding and recognizing the signs of these scams will protect you as a consumer. Sharing this information
will Protect Your Flock; your family, coworkers, friends, and others in your life.

2. Consumer Scams
The Scam Triangle
Protecting
The Flock
To the right is a variation of the fraud triangle specific
to scam participants. Scammers will capital on
individuals when they are vulnerable in the following
areas:
▪ Hope or Trust
▪ Ignorance or Distraction
▪ Desperation or Greed
Due to COVID-19 concerns and responses, all three of
these areas are heightened. People are more ready to
trust in others who can help them. They are more
distracted with the news and worried about their
health, the health of their loved ones, and their financial
futures. Lastly, as this continues, they will become
more desperate. This is when scammers will attack.

3. Consumer Scams
Loan Scams
Protecting
The Flock
As consumers clamor to get finances in order, personal loans will be more appealing. This will
be more so for those who have lost jobs or hours at work as the result of the various societal
shutdowns and economic impact of those shutdowns.
Relying on irreputable lenders via social media, prospect scam victims are typically sent
fraudulent checks or are instructed to give out online banking credentials in order to receive
the loan. Fraudulent funds come into the account with the scammer receiving a cut (to cover
fees, taxes, interest, etc.).
When the fraudulent transaction returns, it can create an overdraft situation for the victim
that can put them into an even worse financial situation. The money they thought was
coming into their pocket is now money owed with little-to-no benefit to themselves.
Prevention Tips
1. Avoid individuals on social
media claiming to be lenders
2. Research lenders to ensure
they are reputable
3. Never give online banking
credentials to anyone who is
not on your account

4. Consumer Scams
Work-From-Home Scams
Protecting
The Flock
These scams target people looking for jobs online. With many of us at home and many places
of work closing, there are those desperately looking for work that stumble on Craigslist ads
and do not see the red flags. In other scenarios individuals realize (at some level) that the
activity they are participating in is nefarious.
There are a few prominent types of work-from-home scams. A scammer could convince a
person that they need to test a product or service, sending an overpayment in the form of a
bad check. Another victim could be instructed to make various purchases, sending the goods
out as part of a shipping company. There are also instances where the scammer convinces the
victim that they have been hired to work a payroll job. The funds come into personal accounts
with instructions to send out to other places.
The scam victim may not put it together; it does not make sense for funds to come into one
account just to go out to another. It makes even less sense that a designated business account
is not used. They are acting as a mule for the deceiver, who is in turn scamming or taking over
other accounts to shift the money and eventually cash out.
You are
hired!
Prevention Tips
1. Do your research into
prospective companies
2. Receiving/processing
checks is a huge red flag
3. Job offers in response
to social media postings
are suspect at best

5. Consumer Scams
Charity Scams
Protecting
The Flock
Charity scams can be different in that they usually defraud consumers
with money attempting to donate. Specific to COVID-19, scammers will
convince vulnerable victims to donate to a fraudulent cause or send the
money directly. Victims may never even find out they are being scammed,
believing they are contributing to areas of need during this crisis.
It goes to show how little some scammers think of their fellow humans.
There are multiple victims with this scam. The person giving away their
money is a victim because they believe their funds are going to a
meaningful cause or someone in need. The second victim is the legitimate
cause or needy person that never gets the support. Rather than make the
world a better place those scammed are financing the wants and needs of
criminals.
“The fact that you are giving money
to a charity does not mean that you
need not try to find out whether
that charity is a fraud or not.”
- C.S. Lewis, Mere Christianity
Prevention Tips
1. Research the charities you are interested in
contributing to; do not respond directly to unsolicited
communication
2. Consider the financial needs of local churches who can
better identify and allocate funds within the
community
3. Avoid sob story schemes, especially via the internet

6. Consumer Scams
Scam Recognition and Application
Protecting
The Flock
Keep your eyes and ears open as you go throughout your day. You may see signs of scams on social media, text messages
or phone calls. Be cautious in your approach to handling these. Non-response is usually the best course of action.
Lastly, share your knowledge with others. There are vulnerable individuals out there that may not understand the risks
involved with the people they are in communicating with. Intervene if appropriate and report it when applicable.
Sometimes a simple talk is all that is needed for someone to understand what they are getting into.
Protect your Flock.

7. Resources
Protecting
The Flock
For more information on consumer scams, here are some helpful websites:
www.fbi.gov/scams-and-safety/common-fraud-schemes
www.usa.gov/stop-scams-frauds
www.aarp.org/money/scams-fraud
www.consumer.ftc.gov/features/scam-alerts

8. Contact Information
Protecting
The Flock
For more information on Protecting the Flock and church fraud, please contact Brad Haacke:
LinkedIn: linkedin.com/in/bradhaacke