FBI warns of COVID-related fraud schemes as vaccines distributed across the country

FBI warns of COVID-related fraud schemes as vaccines distributed across the country "We've been concerned about fraud scheme regarding the vaccine as soon as the vaccine went from an idea to reality," said FBI Financial Crimes Section Chief Steven Merrill. Kristine Phillips USA TODAY

WASHINGTON – For the past year, federal law enforcement agencies have received tens of thousands of complaints of fraud tied to the coronavirus pandemic. More than 100 cases have been prosecuted, and authorities are expecting this number to rise as states continue to rollout vaccines.

"We've been concerned about fraud schemes regarding the vaccine as soon as the vaccine went from an idea to reality. … The one thing that we've learned throughout this pandemic is that when there's money to be made, criminals will figure out how to do it," said FBI Financial Crimes Section Chief Steven Merrill.

Merrill said he can't say how many complaints the FBI has received regarding vaccine-related fraud or how many have been elevated to criminal investigations. But he said officials have seen instances involving websites advertising fake vaccines.

At least one fraud investigation has been made public in New York. The state's attorney general's office is investigating whether a health-care provider in Orange County misrepresented itself to state officials to obtain vaccine doses and distributed them to members of the public who aren't on the state's priority list. Parcare Community Health Network said in a statement that it is cooperating with investigators.

In late December, Gov. Andrew Cuomo announced that health-care providers who fraudulently obtain vaccines could face up to $1 million in fines and loss of state license. Cuomo also said this week that he plans to propose a bill that would impose criminal penalties to medical providers and other entities who sell or give vaccines to those who aren't yet eligible.

Federal prosecutors in Maryland also recently seized websites claiming to be biotechnology companies developing treatments for COVID-19. Authorities said the fake websites used logos of real companies to dupe victims into providing personal information. ...