U.S. government takes first enforcement action against coronavirus fraud

A federal court in Texas has taken the first enforcement action against alleged fraud stemming from the Chinese coronavirus epidemic, ordering a website that offered "access to World Health Organization vaccine kits" to be shut down.

"In fact, there are currently no legitimate COVID-19 vaccines and the WHO is not distributing any such vaccine," the Department of Justice said.

U.S. District Judge Robert Pitman issued a temporary restraining order requiring that access to the website coronavirusmedicalkit.com be blocked.

"The Department of Justice will not tolerate criminal exploitation of this national emergency for personal gain," said Assistant Attorney General Jody Hunt of the DOJ's Civil Division. "We will use every resource at the government's disposal to act quickly to shut down these most despicable of scammers, whether they are defrauding consumers, committing identity theft, or delivering malware."

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The case was filed in Austin against the website operators, following orders from Attorney General William Barr for the department to prioritize the detection, investigation and prosecution of illegal conduct related to the pandemic.

According to the DOJ, the site operators were "engaging in a wire fraud scheme seeking to profit from the confusion and widespread fear surrounding COVID-19."

They claimed to offer consumers access to World Health Organization vaccine kits in exchange for a shipping charge of $4.95, which consumers would pay by entering their credit card information on the website.

"We hope in the future that responsible web domain registrars will quickly and effectively shut down websites designed to facilitate these scams," said U.S. Attorney John F. Bash of the Western District of Texas. "My office will continue to be aggressive in targeting these sorts of despicable frauds for the duration of this emergency."

"At a time when we face such unprecedented challenges with the COVID-19 crisis, Americans are understandably desperate to find solutions to keep their families safe and healthy," said Christopher Combs of the FBI's San Antonio Field Office. "Fraudsters who seek to profit from their fear and uncertainty, by selling bogus vaccines or cures, not only steal limited resources from our communities, they pose an even greater danger by spreading misinformation and creating confusion."

The order is based on a federal law that allows courts to issue injunctions to prevent harm to potential victims of fraudulent schemes.

The DOJ advised consumers to protect themselves by researching companies that advertise COVID-19 solutions. Consumers also are urged to be aware of modified web addresses such as "cdc.com" instead of "cdc.gov"; to distrust unsolicited emails offering treatment or products; and to ignore offers for a COVID-19 vaccine, cure or treatment, and charities requesting donations by wire transfer or gift card,.