She Strengthens

Protecting Yourself from COVID-19 Scams

The COVID-19 crisis has brought out the worst in scammers, who prey on people’s fear and vulnerability. Richard Cordray, former Director of the Consumer Financial Protection Bureau (CFPB), warns that this pandemic has led to a surge in two types of scams: health-related scams and stimulus check scams.

Health-Related Scams: A Threat to Your Physical and Financial Well-being

Scammers are exploiting people’s desperation for COVID-19 tests and treatments by offering bogus products and services. These scams can take many forms, from phone calls to online platforms, and can put consumers at risk both financially and physically. Be cautious of unsolicited offers, and never trust unverified tests or treatments.

Stimulus Check Scams: Financial Predators on the Loose

The second type of scam targets people who are desperate for financial relief. Scammers pose as middlemen, claiming they can help you get your stimulus checks faster or secure more money. They may ask for a fee or sensitive financial information, which they can sell to others, putting you at serious risk.

The Importance of Vigilance

It’s easy to assume you wouldn’t fall for these scams, but they’re designed to look legitimate. As consumers get smarter, so do the scammers. To avoid these scams, conduct your own outreach directly. If you need a loan, reach out to the bank. If you may owe a tax bill, call the IRS. By taking control of your outreach, you can ensure you’re dealing with legitimate entities.

The Consumer Financial Protection Bureau: A Guardian of Consumer Rights

Launched in 2011, the CFPB was designed to protect consumers from scams, predatory lenders, and illegal bank practices. Under Cordray’s leadership, the CFPB recovered $12 billion for 30 million people in its first six years. The agency played a crucial role in regulating predatory home lenders during the 2008 financial crisis and took action against Wells Fargo to get consumers their money back.

The Urgency of the Moment

As the COVID-19 crisis continues to disrupt lives, the CFPB’s role in protecting consumers is more critical than ever. Without oversight, Americans are left vulnerable to scammers and predatory financial institutions. Cordray’s book, Watchdog, highlights the importance of protecting Americans from these threats and serves as a roadmap for making government work for middle-class Americans.

Stay Safe, Stay Informed

Remember to be cautious of unsolicited offers, and never trust unverified tests or treatments. Conduct your own outreach directly, and stay informed about the latest scams and financial threats. By being vigilant and proactive, you can protect yourself and your loved ones from financial predators.